How does the progress of Short Sales compare with stages of a business cycle? Okay, granted, a Short Sale is not a product or a service that a business would seek yet shouldn’t it run perhaps parallel to or in sync with the stages of a business cycle?
Stage 1 – Start up or creation.
Short Sales pretty much became a picture of the Real Estate market a few years ago, say 2007/2008. I would say that Lenders have had a good time period in which to get their Short Sale business up and running.
This is where the Lenders had to set up their Short Sale operations for optimal performance. They had to hire new staff to handle the burst in Short Sales amongst distressed homeowners. They had to get systems in place to streamline the ever increasing Short Sales that still have no end in sight.
This is a stage in which the Short Sale process should now be streamlined. This is where we are at now. The business of processing Short Sales should be smooth, systematic and should be well laid out. Lender images should be well known during this stage. Most businesses would want their images to be favorable during the growth stage of a business. Unfortunately, Lender images when it comes to Short Sales aren’t perhaps the images that Lenders had hoped that they’d be known for today.
Stage 3 – Maturity
Short Sales should reach maturity in the year or two ahead. When the maturity of a Short Sale is reached will Lenders have it all down? At this point, the Short Sale should run on auto pilot which should have been evidenced in the Growth stage where performance should have been optimal. However, in order to reach Maturity many Lenders are still struggling all the way back to their start up stage as Short Sales don’t always run smoothly.
Stage 4 – Decline
Short Sales are not at this stage yet, however this is one stage whereas “decline” would be welcomed.
What is the point of showing you these stages? I’ve been handling Short Sales since 2008 and have been blessed to be able to help many a distressed homeowner save their homes from foreclosure by selling their home as a Short Sale, yet can I say that I’ve seen vast improvements in how Short Sales are processed? Overall, No, it’s a hit or miss. There are Lenders who think that they have a system in place. I cannot point to a Lender who constantly gets it right that any successful business should have at this point of their growth.
Why is it that I will deal with one Lender and more balls are dropped than you can imagine and then I’ll deal with another, like I am just recently, where I’ve gotten an approval within 3 days? What is the Lender with a 3 day approval doing that differs from the Lender that takes months? It doesn’t matter to me in terms of getting the job done as I just have to fight a lot harder for the ones that take several months as I will 9.8 times out of 10 get it done but I would sure welcome a Short Sale that is performing in the Growth stage nearing Maturity at an optimal level.
Mortgage Assistance Relief Services Disclosure
Keller Williams Partners Realty is not associated with the government and our services have not been approved by the government or your Lender. If you stop paying your mortgage you could lose your home and damage your credit. Your Lender may not agree to the change of your loan and/or a Short Sale.With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.