Statistics on Short Sales? Are There Any? Part 2
In the many years of assisting Sellers though Short Sale transactions, I have found it unproductive to try to keep statistics as they relate to what each Lender does, timeframes, whether cash contributions will be required or ways deficiencies are handled. Too many times I have experienced the same group of decision makers (or what appears to be the same group because) produce a result on one transaction, which would be expected on another transaction including same or similar circumstances. The reason for the different result remains undisclosed. I have also repeatedly experienced receiving an approval, losing a Buyer before closing, obtaining a new Buyer and resubmitting for approval. While the purchase price remained the same, the second approval contained different terms and requirements. Again, while understanding the variables and individuals in the transaction, it is unproductive to try to chase down an explanation for the difference.
The bottom line is a professional service to assist Sellers through a Short Sale transaction is needed. When proceeding through a Short Sale transaction, it is mandatory to obtain the most amount of information available in order to allow the clients to make an informed decision so the transaction ends in the best result possible. Anything else is inexcusable. In order to do this, it is productive to master the basic concepts and intricacies of a Short Sale coupled with each unique set of circumstances presented per transaction. The reality of the situation is a hardship that needs resolution. The foundation in any loss mitigation option remains the same. The loan documents provide legal causes of action for the banks to pursue borrowers upon default. The banks do not have to participate in a loss mitigation option. While most of them have woken up to understand the benefits of doing so, it remains unproductive to hold them accountable for decisions made in one transaction versus another.
Too many times unfounded promises or misrepresentations are made by individuals or companies seeking business. If you think about it, how could someone not involved in the decision making process make any representation as to what will be included in an approval? It is an impossibility, and very scary for uninformed Borrowers who are vulnerable, do not know any differently, do not understand the process and are in desperate need of a resolution. While almost every single one of our short sale transactions has closed and included full releases or terms offered to obtain a full release, making any representation as to what a certain bank will do based upon what they have previously done, is a disservice to all in need of or requiring loss mitigation assistance. The best manner to proceed is to understand how to work the process, and zealously advocate on behalf of the Borrowers based upon the individual circumstances, to bring this matter to a resolution.
Please call our Real Estate Department of the Dellutri Law Group for any questions you may have regarding possible Loss Mitigation options. We offer a free initial consultation and are proud to be able to assist Borrowers in successfully completing the remedy best suited for their personal circumstances.
This Blog was written by Annette Giardina Haber, Esquire, of the Dellutri Law Group, P.A. Ms. Haber runs the Firm’s Real Estate Department and concentrates her practice as a real estate transaction attorney. She represents clients through loss mitigation options, drafts contracts, title insurance and handles residential and commercial closings.
