So my client can hopefully avoid a foreclosure in the future, I am currently working on a short sale with Chase in the first position and Litton Loan in the second position.  Litton said that part of their slowness, more than two months, has been due to restructuring their loss mitigation department.  A colleague put in a short sale request after me, was put through their new system and quickly got his approval.  We lucked into the transition and were lost in the wake of it all.

The good news is that many banks have figured out that slow and steady may not win the race.  I have heard national reports of homes going to foreclosure due to the banks being overwhelmed and taking so long that the buyer moves on.  Just like most changes in attitude or systems it seems that there has to be an overload of some kind to get things moving.

Another interesting point was that Chase said it was their policy to only give $1000 to the second position holder.  In this case Litton scoffed and said that Chase’s other policy is to get 10% of the loan when Chase is in second position.  Great double standard if you can swing it. Right now the two banks negotiators are hashing it out.  I think the words, “We will remember that.”, were injected from Litton.

Hopefully we end up in a streamlined process and some consistency.  It seemed to work for the colleague.

photo via http://www.flickr.com/photos/notionscapital

If you enjoyed this post, make sure you click here to get free updates in your feed reader or via email!