Short sales, where a home owner is selling their home for less than what is owed on it, can be maddeningly frustrating for all involved.
The problem is, mortgage lenders have to approve every short sale. This makes sense, as they are the ones taking it in the shorts and getting paid less than what was originally promised.
Lenders often take weeks to respond to a short sale offer. The general excuse is they are overloaded with requests and under-staffed.
OKfine. But does this give them a license to be idiots?
Case in point:
Short sale offer submitted on Feb 4. The lender approved the short sale on Feb 26 ”“ which is actually quite swift for a short sale.
But, there was a little problem”¦
It took 12 days to fax the acceptance”¦ generally speaking, a four page fax should only take what, 5 minutes, to send. The Pony Express could have delivered the acceptance faster. . .
Which brings us to idiocy numbers 2 and 3:
So the bank thinks they are providing the buyer a 28 day closing period. But due to the epic fail of the 12 day walk to the fax machine, in reality we have 16 days to close. Given that the buyer has to secure a mortgage, closing in 16 days is next to impossible.
A call to the “Special Services Department” yields this golden nugget:
“Oh, the buyer needs a mortgage? We weren’t aware of that.”
Really. That’s pretty much what section 1c of the purchase contract says, along with sections 2a through 2k. You know, the section with the big bold label of FINANCING.
Of course that entire page that covers the buyers loan pre-qualification might be another hint that a mortgage was involved. . .
And you want to assess a per diem if it closes late? Uhm, how much per diem? $5 per day? $100 dollars per day? Or would you prefer our buyers simply send you a blank check and you can just fill in whatever amount you want?
Here’s an idea. Instead of failing to read, and being unable to operate a fax machine, and asking for blank checks from the buyer, why don’t these banks just ask the government for money to keep them operational?
Oh wait, never mind. . .
(Note: lenders name and contact info intentionally distorted so their lawyers don’t ask me for a blank check.)
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