Relocate to Wisconsin : Local Lenders and Short Sales....Short Comprehension

     Local lenders seem to have a much more difficult time understanding  the “short” in short sales than the larger national lenders.    You can take a walk thru the Rain or any real estate website where short sales are a topic…and the echoes of complaints are heard about the same lenders over and over…no response…refused to negotiate…charge a deficiency…second lien holders who believe they are in control and want “everything.”

   Local lenders some in particular we understand…go through all the exercise…they  order a BPO, hire a licensed  appraiser…have bank “officials” walk the property …drive past…tour them inside and out. Often the conclusions, to some degree are the same…yes…the values have declined.  The BPO sent in  with the short sale IS correct….AND that meets or beats the price written by the buyer(s) eager  to purchase the property.

  Sooo….we all agree…but  wait…the BPO, appraisal and tour “inspection” agree that the value of the property is now “$X”….and that is the amount the lender will accept….sounds like a transaction completed…not sooo fast.  The lender now says, yes …this is the correct amount, they helpwill approve the sale…IF that is the net they receive after taxes, expenses, interest, fees,  etc. 

    Soooo sorry Mr. Local Lender…appraisals don’t mean you get to deduct all those figures..AND the longer you delay with attorneys and bank officers bouncing these numbers back and forth, the higher your expenses.  To demand that this figure be your net proceeds means you are looking for a cash buyer that doesn’t want  an appraisal to protect their investment….and where would you find such a person  ? Would you lend money to a  buyer for a property that did not appraise  ?  Of course not…so don’t think about putting the property in your ever expanding,  over priced, non-appraisable inventory…do the right thing…the ONLY thing that will help the neighborhood,  the economy….and the red ink on your books…do a short sale.