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Laura Miller

First Federal Bank???? Short Sales??? Are you kidding me????

08-04-09
Laura Miller

I am working on a short sale with First Federal Bank. I have had one buyer, very committed, to the purchase of my listing for 4 months while Frist Federal reviewed the short sale package. The foreclosure efforts continued while the bank reviewed the short sale. A Notice of Trustee Sale has been recorded against the home, and the sale is set for this month. I contacted First Federal with a request to postpone the sale pending short sale approval and close, the short sale negotiator told me that the buyer must pay a $10,000 NON-REFUNDABLE payment, which will be applied towards the purchase price, in order to hold the sale off for 30 days. WHAT????????? Who would do that? Any feedback or related stories out there?????? I have NEVER had a bank do this.

Wachovia Rocks with Short Sales

01-04-09
Laura Miller

I have managed and transacted on many short sales this years, for both buyers and sellers. I also utilize the services of a professional negotiator to expedite the process. As some may already know, there is nothing "short" about the process of a short sale. The term truthfully relates to the "short payoff" that the bank must approve in order to complete the sale of a home that is "underwater" and "upside down." Generally speaking, the approval process can take anywhere from 2 months to 6 months, potentially longer. In the meanwhile, buyers are lost, sellers become extraordinarily impatient, and time continues to drag on with days on market for the home desperate for a new owner. There is definitely no immediate gratification; no immediate approval; just wait. Well Wachovia, for me, set a new approval record. I represent the seller in this case. The package was prepared for the bank, the purchase contract was received by the expectant buyer, and the entire package was delivered to the bank - Wachovia, in this case. To all of our amazement, Wachovia contacted me within a week to set up an appointment at the home to complete a brief interview and BPO (Broker Opinion of Value) on the home. Within days, we had our official appraisal. Within 2 weeks, we had our approval in writing from the Wachovia, enabling us to open escrow and commence with the actual sale of the home. We (buyer, buyer's agent, seller) fell over.

So, clearly, some banks are getting the message: Let's redirect some of our efforts from REO, Asset Mgmt, division, to our short sale division, avert the imminent foreclosure market, and begin to stabilize the valuations in our real estate market place. Everyone wins. Buyers get a great home at an REO price, Sellers save their credit, banks experience less of a loss in a declining market, real estate values stabilize.

I'm All In....