One of my greatest frustrations in working on short sales is the lack of process, and information, available about the transaction. It makes it very difficult to set the expectations for my clients.
It occurred to me today, that we have a huge community here that could share information. It won't make the process faster, or more efficient, but it might help us all to set accurate expectations about how long it will take to get short sale approval. Since it seems to vary from bank to bank, the more specific you can be the better.
Here is what I have found about working with SUNTRUST (just to clarify, this is only my experience--yours may be quite different).
- The contract is submitted to a front-end negotiator who reviews it and assigns it to a processor.
- The processor reviews it for completeness and orders an appraisal.
- The contract will remain with the processor for between 60 and 90 days. He/She has an enormous caseload.
- Once the processor 'approves' the file, it is passed on to a back-end negotiator. My understanding is that this person is the final review. We are still not at this point in the contract I am currently working on.
- Once the back-end negotiator approves the contract, it is considered 'ratified' and the regular contract contingencies can begin (loan approval, appraisal, home inspection, POA docs).
It has taken me 2 months to figure out this process...no one seems to be in charge of explaining it up front. As you can see, it is not that complex, just time consuming.
I hope that this information can help you to educate your clients if you are working on a Suntrust short sale.
If you have experience with another lender that you think would be helpful, please share it. I think it can really help all of us in this challenging market.
Please note that this is a public posting. I think there are plenty of consumers out there that would like to learn some of this information, too. This is also NOT intended to be negative about the process, but rather to share information in hopes of making the understanding of the process easier for us all!
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