Last week there was an article in the NC Times here in San Diego about Realtor’s advantage in using specialist for short sales. I agree with:
But agents say short sales have grown more complicated than ever, because of their sheer number, because of the prevalence of second loans, and because several large lenders have recently merged with others. Agents have complained that it’s possible to call a lender three times in a week and get three different people responsible for the same property.
But take great exception with this:
Beer said the situation may have eased in the last couple of months as lenders develop standards for approving short sales. The second loan is often paid off at 5 cents on the dollar, a low percentage that is nonetheless fair because such lenders get nothing in the event of a foreclosure, Beer said.
I don’t feel there has been much easing because the banks are so overwhelmed. Most second lenders will not even consider releasing the lien for less than 10% of their outstanding balance. BofA is now requesting the sellers provide a small cash contribution at closing or sign a promissory note as part of a morale obligation.