Short Sale Processing – One thing everyone agrees on: “Getting approved from the bank takes too long!”

Short sales processing should be considered when your two biggest problems are demand and delays. You know you’re dealing with a lot of frustrated people in a huge potential market.

In the last year or so, short sales have gone from being an obscure real estate transaction to front-page news across the country.

Not surprisingly, many of those headlines have focused on the frustrations of homeowners, buyers, and agents.

However, this is NOT negative publicity! This is a good thing, shedding light on the issues and putting pressure on Washington, DC to fix the process. Well, they’re trying anyway…

“What I’ve seen banks do is postpone foreclosures, particularly on properties that will be hard to sell. It’s like they’re begging us to get rolling…then it takes months to get approved.”

Indeed, the banks’ behavior seems unreasonable, if not insane.

Shadow Inventory is not a secret or a secret cache of property that banks keep off the market in a deliberate conspiracy.

Shadow Inventory is, quite simply, the massive backlog of foreclosed homes that have yet to be processed. This is very simple, very real, and most importantly, very big, over 4.7 million now and growing.

Now consider that once those properties are listed, the delay will be even longer as foreclosure rates rise in 2011.

According to an August 2010 statement from the Mortgage Bankers Association, there are now more than 7 million American households in delinquency or yet to process.

This problem is growing faster than it can be fixed, so expect Shadow Inventory to continue to make headlines and cause headaches for months and maybe years to come.

I think everyone should know this by now, but I’m going to say it anyway.

“Banks are not in the business of short selling, they are set up to make loans; they are not set up to do restructuring.”

“The main reason short sales are not approved is that bank mitigators will say the price is below market value!”

In my experience, there are no guarantees that a sale will take place once the process has begun and mortgage holders can foreclose before the process is complete, especially if it is not done to the liking of the mitigators. from the bank.

The short sale process and the foreclosure process are two trains running on parallel tracks. The fact that you are trying to make a short sale does not stop the foreclosure. A contract to purchase the property only delays the process, but if the buyer backs out, the foreclosure continues, not starting all over again!

One solution that will help many, is to have a great relationship with bank mitigators and have the technology to make their job much easier.

One thing I do know for sure: short sales are better than foreclosures, absolutely for everyone involved… even the banks!

Here are two important reasons why:

• dirty shorts do less damage to your customer’s credit score and explaining this will gain more trust.
• dirty shorts let your customer buy a home sooner and they will come back to you for their next purchase.

Everyone has a vested interest in seeing the real estate market recover as soon as possible:

(Sellers, Buyers, Realtors, Brokers, Banks and even Investors)

How can we resolve the issues of delays, long timelines, lengthy document collection/submission, and bid validation?

These are the questions that serious real estate professionals have been asking for a long time. Sure there is an opportunity to make a lot of money through short sales, there just has to be a proper solution to these troublesome hurdles.

There is a piece of technology that was designed and developed to alleviate all the problems associated with a short sale.

It’s called The Short Sale Engine and this online system is a direct response to business ailments.

Short Sale Engine has revolutionized the way real estate professionals do business by automating the entire process of collecting and submitting documents through an online interface.

Instead of dragging yourself through the game wait 4-6 months for a typical closing. Speeding up the short sale processing will help solve the problem our nation is in right now and therefore make it much easier for everyone to recover from the current mortgage market.