When it comes to short sales, it seems that lenders come up short, at least in California.
According to a survey to gauge the experience of Golden State real estate agents in working with underwater borrowers, their lenders are unresponsive, have onerous procedures and take too long to process the deals.
Worse, the study found, fewer than three out of five short-sale contracts close. And if they are lucky enough to go to escrow, it typically takes months.
The California Association of Realtors says that 94% of the agents surveyed participated in a short sale transaction in 2010. But it didn't say whether they had experience handling such transactions, or whether they were the reason deals took so long. Many lenders complain that agents involved in short sales don't know the first thing about their requirements.
What CAR does say is that more than three out of five agents reported that lenders took more than 60 days to return a written response of approval or rejection of the short sale agreement that was submitted to them. Just 4% said they received a written response in less than 14 days.
In addition, nearly half the respondents said lenders took more than five business days to return any form of communication. Only 14% said lenders responded "within one business day."
