Minnesota Real Estate Investors Association, Inc.

Minnesota Real Estate Investors Association, Inc.

Why are Banks so Slow to Respond to Short Sale Offers?


This is a question that has crossed many people’s minds lately. There is no question about the fact that the banks are taking forever to respond to short sale offers. In fact, many times, the property goes to foreclosure and/or the buyers walk from their offer before the lenders respond to the original short sale offer. This has caused a lot of good properties to go through the entire foreclosure process and make it back on the market as a Bank Owned REO. These properties now sell for as much as half of what the original short sale offer that was submitted months before could have generated for the bank.

This has caused a lot of people to ask why? And Rick Kupchella from Kare 11 news was the next person on a long list of people who are asking why. Rick Kupchella contacted me last week to see if I had an answer and all I could give him was explanations as to what is going on with the lenders, but even I cannot answer the ultimate question of why the banks would rather take a property back rather than accept a short sale.

Watch the TV segment that aired 2 weeks ago from Rick Kupchella
Extra: Banks slow to respond to homeowners in trouble

On Friday, I spent half the day with Rick Kupchella from KARE 11 News talking about foreclosures and short sales. The segment is slated to air Sunday night March 29, 2009 on the 10pm news.



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oliviagray86@yahoo.comAs more people fall behind on their mortgages, lenders have been slow to take advantage of a long-standing alternative to foreclosure.

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audreyross18@yahoo.comYou're so right Mike, the question why the banks would rather take a property back rather than accept a short sale? also crossed my mind so many times. What the bank has to say does not make sense at all, not a reasonable answer.

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mikej@realestatepromo.comfirst of all PayDay, this post was written about a year and a half ago. And secondly, I would still agree with the fact that the banks are slow to respond. Short sales are still happening and they are still taking forever to get done. The reasons may have changed over the past year, but the results are still the same.

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