Short Sale Approval being Fast Tracked

Short sale approvals being fast tracked
A number of banks have revamped there short sale approval process, decreasing time needed to gain approval significantly. In fact some lenders have even begun to approach homeowners in errears and those in danger of falling into errears and are suggesting that they list their homes as short sales. In these situations lien holders pre-approve the sale at a price, reached in conjunction with a local real estate agent. No doubt many lenders are still stuck in the same rut and have not wrapped their heads around the problem they're having with non-performing loans. On average lenders lose up to 50% more on a property when they foreclosure on it than they would if they were to allow a short sale. Recently the government has launched an effort to streamline the processing of these transactions industry wide. A part of this initiative is cash payments to 2nd lien holders for cooperating in a short sale transaction, as well as a $1500 payment to the homeowner for relocation expenses.Foreclosures are still on the rise but between approved short sales and loan modifications, we may actually see a decrease in the number of foreclosures yet.

Many home buyers are advised to steer clear of short sales due to the headaches involved. Certainly many of these transactions can be a real nightmare. But each should be assessed on based on the number of lien holders involved, how many offers (if any) have been submitted to the lien holder(s) and how long offers have been in process with the lien holder(s).