We SOLD and Closed on a Property Today January 2nd, 2009 that was
Subject To Lenders Approval of a Short Sale.
The Purchase Agreement was received by us via Fax from the Buyers Agent and Jeff contacted the Sellers Lender's Loss Mitigation Department the next morning.
He listened to the usual "sch-peal" of how LONG an answer would take and the LIST of requirements that needed to be in place (pre-lim HUD, hardship letter, etc...) even BEFORE they would consider reviewing this offer.
I walked over to him while he was on the phone and handed him a highlighted portion of
A New Indiana Law passed to help Homeowners facing a Short Sale...
Indiana HOUSE BILL 1359 an excerpt which reads :
"Requires a creditor, a mortgage servicer, or an agent of a creditor to acknowledge a written offer made in connection with a proposed short sale of property that is subject to a mortgage transaction that is at least 60 days delinquent. Provides that the acknowledgment must be provided not later than 10 business days after the date of the offer. Requires the creditor, servicer, or agent to accept or reject the short sale offer not later than 30 business days after receipt of the offer."
I heard Jeff read this exerpt to the Representative on the phone and then ask to speak to a supervisor:)
ONE WEEK ( 7 Calendar Days ) later, the offer was accepted and 3 weeks (21 Calendar days) after that the Final HUD 1 Statement to Close was Approved! 28 DAYS TOTAL - now that's a Short SALE!!!
Even the Buyers Agent was surprised..LOL
It will be a great NEW Year in Indiana, if other Lenders follow this example and heed THE NEW LAW affecting Short Sales :) 
There are monetary fines to the lending institution for failure to adhere, if the new TIME guidelines to keep Short sales SHORT is not upheld!
As PROFESSIONAL REALTORS....We'd rather work collaboratively WITH BANKS and LENDING Institutions to facilitate Successful Short Sales & help PREVENT the CLOGGING UP OF OUR PUBLIC Court Systems and Honorable JUDGES time. Not to mention the waste of Indiana TAX PAYERS MONEY when a home forecloses ( who pays court system employees & sheriffs? we do ;)
There are ready, willing, and able buyers shopping NOW with Interest Rates LOW.......WAY BEFORE a house deteriorates and depreciates a neighborhood by standing empty for a year!
YOU NEED REALTORS to help SAVE this Housing MARKET.
editorial opinions by Grace Safrin
Jeff & Grace Safrin - REAL Estate Brokers - F.C.Tucker Advantage Realty
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Disclaimer: The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of Jeff and Grace Safrin of F.C. Tucker Advantage Realty. Jeff and Grace Safrin and F.C. Tucker Advantage Realty are not responsible for the accuracy or content provided.
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Sincerely,
Jeff & Grace Safrin, Broker / Owners
F.C.Tucker 1st Team Real Estate - Independently Owned & Operated
13 Lincolnway Suite # 203, Valparaiso, IN 46383 Office # 219-309-9930
Oh for a similar law in Nevada! I tend to avoid short sales like the plague when working with buyers. The norm for acceptance "or rejection" is 60 days and there are usually several properties in the same floor plan and at the same price that are REO's. Why should I keep my client tied up for that time. Congratulations on the state holding the bank' feet to the fire.
Thanks for stopping by and commenting Stephen - our IN state association has some great members/lobbyists that help with consumer realty issues such as these.
We've had some good bad and ugly LOL experiences - local lenders & credit unions are very easy to deal with.
It's those big national chains with bureacracy's that take some work. Jeff is great - he gets through & gets them done most of the time and now with this new IN aw on the books, the paved way SHOULD be easier. Time will tell :)
Sincerely,
Grace
I haven't quite figured out how to let the lenders know about this law without making them mad for bringing it up. First Franklin said they didn't care about our law, their process takes approx 45 days. I think that is their "policy" but not actuality as I have not ever had them take that long. The negotiator I use is phenominal!
Hello Evelyn ( short sale expert) from Elkhart IN ! You are very fortunate to negotiate so well and get those short sales done. Congrats! Jeff brought it up to this lender because of past experience of deals taking 13 weeks! Most local lenders and credit unions we have dealt with are fast getting short sales done- it's just the large burecratic ones where this law may help keep deals together!
Thanks kindly for taking time to stop by and comment.
Sincerely,
Grace
I Love it! We tend to put news like that on top of submissions tehn try to work it into the conversation later. Asking for a supervisor is one way when the front line person doesn't quite get it. But, as mentioned, we walk a tightrope trying to attract more flys with honey and not make new enemies.
I really like your style too, with this at end of such an informative post:
YOU NEED REALTORS to help SAVE this Housing MARKET.
Hello Patrick - discernment is always needed when trying to collaborate to get deals done. Sometimes when you get no feedback indicating your message is even attempted to be recieved, the legal truth must be presented to someone of higher authority or.... if at first you don;t succeed, try try again :) Thanks for taking time to stop by and share your sentiments. We do believe that REALTORS in this business are not only needed to help turn it around, but are necessary to be part of the solution( and not just complain about the problems:)
Sincerely,
Grace
I wonder if each state must pass a similar law, and is it applicable in the state where the bank is or the state where the property sits.
I have been telling agents to contact their Senators and Congressmen. They need to know how the banks treat offers when they come in.
Not sure if all states are passing laws like this? it would be great if they did!
It is applicable in the state where the property is located - no matter which state the Lender is located.
Great you are encouraging a grass roots movement of your clients to call - we used a local state representative once months ago when we had a short sale linger for 12 weeks - his call helped close the deal!
thanks for commenting Donna
Sincerely,
Grace