While nationwide, distressed property sales showed signs of improvement, California’s distressed preoperty sales took a dip in the month of July.
The California Association of REALTORs (C.A.R.) points to lenders’ requirements which make closing these transactions a difficult process.
C.A.R. recently sent letters to the heads of the nation’s largest lenders – JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo – making recommendations on how the short sale process can be improved and calling for the lenders’ urgent attention to address the issue.
Beyond the customary requests for realistic timelines and explanation for short sales that are rejected, the trade group is asking the lenders to disclose up front whether or not they actually own the original loan and be clear on who has the final authority to approve a short sale offer.
Realtors also say the process would move along much more quickly if lenders would pre-approve the short sale and price upon request, prior to the property being listed.
They want the lenders to increase the amount junior lien holders are given for agreeing to a short sale; second mortgages can often derail a transaction.
From “California Distressed Sales Decline, Realtors Push for Streamlined Shorts” an article written by Carrie Bay, DSNews, 8/26/11