A Short Sale That Might Actually Be Short

Many of those who have attempted to purchase short sales understand that the name is not indicative of a quick sale.  In fact, short sales have been known to take 3-6 months while the lien holder(s) attempt to funnel through as many approvals as they can.  Well, the reality of this long wait is that many buyers can not hold out that long and look for other homes to purchase.  I've been on the seller side of a short sale and Bank of America took so long to respond that we were in and out of escrow seven times because the buyers could not wait. 

Well, Fannie Mae and Freddie Mac are now requiring lenders to make a decision no more than 60 days after receiving an offer.  The regulator for Fannie and Freddie, the Federal Housing Finance Agency, said that this is a step to"develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure."  Additionally, if a loan servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower's response.

The new short sale timeline will take effect this June. 

About the Author

Brandon Lau grew up in Kailua and currently resides in Honolulu with his wife Andee and children Caylah, Elijah, and David. His eighteen years in real estate led him to become a Partner at ChaneyBrooks Choice Advisors. Over the past 10 years he has developed the team and systems that has created a high level of service and value for his clients.

What differentiates Brandon and his team is his consultative approach to real estate. He advises clients with relevant data and expert insight to help them make the best choices in real estate. Good choices in planning for long term dispositions, negotiating for the best price or knowing when not to pursue an investment are ways his consultative services will give you an advantage in the marketplace. His bottom line is providing service with the utmost integrity and expertise.