As a buyer can we talk to the Lender, when we are making an offer on a short sale

As a Realtor for 22 years, I am amazed that the Short Sale process has superseded the Foreclosure market. Years ago when you lost your job, became ill could not make your payment. What did the Bank do? How about Foreclose on you This past May of 2009 and then in October of that same year, the Treasury Department along with the Department of Housing and Urban Development announced programs designed to expedite the short sale process. The Treasury department even announced that lenders or those servicing those mortgages may receive an incentive compensation of up to 1,000 for a successful completion of a short sale. Also a borrower could also receive 1,500 to assist with a relocation expense. The Treasury promised to publish streamlined and standardized documentation, including a short sale agreement, which would speed up the process.



Although as of 2010, no such documents have been published, and banks are ignoring the pleas from the Treasury to complete the process within 90 days. I can speak from experience that Banks are not working for the consumer. Seven to Ten months is not an unusual procedure for these Banks . This causing the sellers to loose buyers that walk, thus starting the short sale process all over again. When you are ready for an approval, the Bank calls back the loan and it start all over again. I am not sure if the right hand is not knowing what the left hand is doing or this is a game. Homes are piling up and not being release to consumers. Their portfolio is in the hundred thousand and still climbing.



So to the buyer/ consumer, the answer is no you cannot speak to the bank about your offer. I as an agent spend 5 hours a day trying to speak to the Bank and I have an approval from the seller. What you get is a person who knows absolutely nothing, but the notes in front of them. When you ask to escalate the loan, their comment is wait 10 working days from the first escalation. You are at the Mercy of the party on the phone, who probably get minimum wage.



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