The California Association of Realtors announced sending a letter to the nation’s four largest lenders and mortgage servicers asking for help in streamlining the short sale process.
A short sale occurs when a homeowner sells a house for less than the outstanding amount owed on the mortgage. The bank to which a homeowner sends payments is often not the actual owner of the loan.
The owner must approve a short sale and delays in negotiations between several parties is one reason short sales can take a long time to complete.
The Realtors group sent the letter to JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo. Realtors asked for the banks to provide homeowners attempting short sales with such help as realistic time frames, upfront delivery of what conditions are necessary to approve a short sale and making sure homeowners know who has authority to approve a short sale.
“We believe banks, investors, homeowners, and real estate professionals all have a common interest in conducting these transactions expeditiously and efficiently,” C.A.R. President Beth L. Peerce wrote in the letter.
“The housing market recovery is in everyone’s best interests, and your urgent focus on these issues will help achieve that end.”