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 August 07, 2009

Banks Hopeful Regarding Federal Short-Sale Efforts
A program intended to expedite and simplify the process of a short-sale real estate transaction is being launched by the federal government. Features include cash incentives offered to lenders, a $1,500 moving expense allowance offered to borrowers, and standardized documentation. Those who hold second liens will receive up to one thousand dollars to give up their claims.
Banks site the causes for the slow moving process of short-sales as a lack of knowledge amongst both bank staff and real estate professionals. All parties have been learning as they go.

The vice president in charge of short-sales with Bank of America, David Sunlin states that currently, their bank sees nearly one half of their short sales never closing. He sites this as missed opportunity and looks to federal changes with optimism for increased closings in the future.

Wells Fargo Bank has prepared a guide for real estate professionals as to how their bank handles short-sales. In doing so, the bank has trimmed the time period of a short-sale from ninety days to just thirty days, the length of a typical escrow.