Posts Tagged ‘short sales’
Bank of America now accepts e-signatures on most pre-appproved short sale documents. All closing and final documents will still require handwritten (“wet”, “real”, “conventional”) signatures.
This is a welcome move on BofA part. BofA seems to be at the forefront of innovation when it comes to handling short sales. Our processors have noticed a lot of improvements lately, including reduced approval time. We look forward to other lenders, government institutions and GSEs adopting e-signatures across the board.
Learn about free short sale processing services, best short sale mitigation software and DON’T forget to ask us about BPO orders and short sale leads.
National Closing Center will soon start accepting registrations for valuation experts in Illinois. Be one of the first to learn all about it and get your name in the hat!
NCC is not (only) about short sales anymore…
First-time buyers are abandoning short sales and looking for other options. According to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, first-time homebuyer purchases of short sales dropped to 39.7 percent of short sale transactions in August. That represented a three-month slide and was the lowest level for first-time homebuyers ever recorded.
The first-time homebuyer share of short sales hit a peak of 54.1 percent of all short sale transactions in November 2009, just before the originally-scheduled expiration of the federal homebuyer tax credit.
Short sale transactions have long been problematic for buyers and sellers alike, with typical approval times of several months after a homebuyer first submits an offer. Factors slowing down short sale approvals include lost paperwork, coordination with multiple investors, slow appraisals, and mortgage servicer understaffing.
Still, for many first-time homebuyers, average short sale prices of 27 percent lower than non-distressed properties compensated for the wait time. But with average time-on-market for short sales stalled at 16.6 weeks—with the majority of that time spent waiting for short sale approval—short sale transactions are becoming less popular with first-time homebuyers.
This is an unfortunate situation, because when properly handled, a short sale is the best option for a first-time buyer in the today’s market. Yes, even if everything goes relatively smooth, some type of waiting and will always be involved. However, if the waiting time is not outrageous (less than 6 months) a short sale will result in significant savings and simply getting a bigger bang for the buck. It all comes down to who and how is handling your short sale…