Short Sale Daily news asked it’s readers, “What Are Your Biggest Short Sale Challenges in 2011?” Here are the results:
We asked and you responded, Short Sale Daily News readers! Our quick and easy survey featured this single question, with the ability to click up to four out of 12 possible answers.
Surprisingly, we found a few of these were of very little concern. Issues such as the amount of inventory on the market, educating potential buyers on the short sale purchase process, funding/loan approval and consumer confidence all scored very low on your list of concerns.
So what was the #1 challenge that Realtors clicked? Lag time in bank negotiations weighed in at 44.7% followed closely by inflexibility at banks with 42.1%. The next highest ranking challenges were:
Getting the deal from approval to closing: 36.8%
Unwillingness of banks to do short sales because they profit more by foreclosure: 31.6%
Lack of proper staffing at bank: 28.9%
Time restrictions banks place on the deal: 28.9%
Educating distressed homeowners as to why/how a short sale is better than foreclosure: 23.7%
So what seems to be the common thread with the greatest concerns? The banks. Veteran short sales agents probably won’t be all that surprised about this, but it is sad nonetheless. The mega banks keep saying they are staffing more, responding more quickly, streamlining their operations, etc., etc. and yet agents still can’t get answers in a timely manner. And distressed homeowners—bank customers—keep getting increasingly frustrated with the pathetic level of customer service happening with these mortgage servicers.
You would think the last thing ANY bank wants right now is more real estate inventory on its books to maintain, carry, pay taxes for and go through an additional negotiation process for resale. And yet banks’ actions say just the opposite. Is it any wonder then why this theory that banks make more money on foreclosures than short sales is starting to sprout some serious wings? Nearly a third of you who took this survey signified that as a concern.
Source: Short Sale Daily News