Is There Such a Thing as a ‘Short’ Short Sale? Yes…If You Have the Right Lender

One of the great oxymorons of the real estate industry is the Short Sale, which has become famous for being anything but short. I’ve been promised 60 days only to have it become 5 months. I’ve had a bank tell me it would likely take 6 months, only to have it take a year.

I also am leery of anyone claiming to be a short sale expert. Although there are some wonderful agents and representatives that are often assertive and diligent in their efforts, resulting in improved time frames for their clients, every bank is different and ever-changing, and the loans are often sold in the secondary market making the process very removed from the ability to directly to influence.

And while we have consistently been promised a more streamlined, expeditious process, it’s still a rarity.

Thankfully, there are a couple of bright spots.  The good news, is that if you loan is currently with Wells Fargo, but was originally with World Savings and Loan Association, World Savings Bank, or Goldenwest Financial you may very well be eligible for a unique short sale approval process rarely seen.

Darlene Lapeere with Wachovia (confused? Hang in there – World was bought by Wachovia, then Wells Fargo bought Wachovia) is their negotiator for Orange County short sales.  She spoke at a meeting I attended last week and shared their unique short sale process.   Here are the highlights:

• Approval can happen in as little as 48 hours thru 10 days, if going through their fast track process

• Foreclosure may be halted as late as the day before the Trustee Sale as long as there is a purchase contract (on a case-by-case basis)

• Applies to both Owner and Non-Owner Occupied

• You do not have to be delinquent

• Be aware, HAFA eligibility may delay the process

• Ms. Lapeere is the one and only single point of contact. No additional negoitiator is needed

• Will have to determine HAFA eligibility

• They will pay the 2nd lien holder up to 10% of the loan amount as long as the lien has existed on the subject property for 12 months or longer

• Must show evidence of a hardship

Obviously, lack of deliquency requirement, short processing, and the Non-owner occupied property eligibility make this a very unique program. Why is it so rare to see this?

Their ability to work in such a timely manner and with such unique terms is that these are portfolio loans – not loans sold in the secondary market. Often times, the lengthy periods are tied up in securing approval from multiple investors.

If you have questions about whether or not you might have one of these loans, and your are considering a short sale, please don’t hesitate to reach out to me or you may also email Ms. Lapeere with your address and loan number at darlene.lapeere@Wachovia.com.

Whattya know – you just might find a fast – a ‘short’ – short sale afterall.