Paddy Deighan is a real estate investor, attorney and advocate. This blog is dedicated to providing useful information, tips and guidelines for all of your real estate needs.
Monday, July 2, 2012
Realty Trac Announces List of Best Short Sale Lenders
Realty Trac announces list of best Short Sale Lenders. There certainly is a lot of negative press about short sales and the lenders that participate in them. There never seems to be any positive input and the realty Trac announcement sounds positive. However, according to the RealtyTrac findings, some banks have found that by courting short sale buyers, short sale sellers benefit as well. The data firm recently released a list of its “best major banks to work with when buying short sale homes,” and many analysts believe that these banks are also the best to work with when trying to sell those homes. RealtyTrac named PNC Financial Group the best major bank to work with thanks to an average transaction time of 151 days and an average percent discount of 40 percent. Government entities like Fannie Mae, Freddie Mac, and HUD came in second. They had an average turn-around time of 154 days for the transaction and an average percentage discount of 42 percent. Rounding out the top three, Ally Financial offered an average 35 percent discount with 188 days from start to end of the transaction.
These seem like positive numbers and the percentage of discount seems healthy. However the turn-around time seems atrocious to me, especially considering the healthy discounts. If the GSEs can turn around properties that quickly then it seems reasonable to conclude that non-government lenders and servicers should be able to do it more quickly. Chase, Bank of America and Wells Fargo have all introduced new programs so let’s see what happens in the coming months. There is certainly a lot of hype that the markets are improving and I find little credence to it, but we can all work hard and get as many deal completed as we can!!
Paddy Deighan J.D. Ph.D