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IPFS News Link • Housing

Mortgage Lenders Give The Shiv to Short Sales: 43% Fail To Close

California real estate agents say that lenders are unresponsive to efforts to sell under-water homes, killing four out of every 10 “short sale” transactions that go under contract, a state survey shows. The California Association of Realtors released survey results today, showing that 67 percent of respondents said they are not satisfied with the process of approving sales at prices below what’s owed on the mortgage, known as “short sales.” Said state Realtor President Beth Peerce: “The short sale system is clearly flawed and must be standardized and streamlined. … Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery.” The Realtor group got responses to its Short Sale Lender Satisfaction Survey from 2,150 members in December, the association said. Among the findings: Survey respondents say that 43 percent of all short sale deals that go under contract end up falling apart. Just 57 percent end up closing. Seventy percent of respondents characterized their most recent short sale as “difficult” or “extremely difficult,” while only 10 percent said it was “easy” or “extremely easy.”