Why are Banks so Slow to Respond to Short Sale Offers?

by Mike on March 24, 2009

This is a question that has crossed many people’s minds lately. There is no question about the fact that the banks are taking forever to respond to short sale offers. In fact, many times, the property goes to foreclosure and/or the buyers walk from their offer before the lenders respond to the original short sale offer. This has caused a lot of good properties to go through the entire foreclosure process and make it back on the market as a Bank Owned REO. These properties now sell for as much as half of what the original short sale offer that was submitted months before could have generated for the bank.

This has caused a lot of people to ask why? And Rick Kupchella from Kare 11 news was the next person on a long list of people who are asking why. Rick Kupchella contacted me last week to see if I had an answer and all I could give him was explanations as to what is going on with the lenders, but even I cannot answer the ultimate question of why the banks would rather take a property back rather than accept a short sale.

Watch the TV segment that aired 2 weeks ago from Rick Kupchella
Extra: Banks slow to respond to homeowners in trouble

On Friday, I spent half the day with Rick Kupchella from KARE 11 News talking about foreclosures and short sales. The segment is slated to air Sunday night March 29, 2009 on the 10pm news.

985932cf-f41f-4ddf-9d6b-5027d9e1f200|1|5.0

7/21/2009 10:33:27 AM #

I have been meaning to write something like this on one of my blogs and this has given me an idea. Cheers.

7/25/2009 3:38:19 PM #

Thanks.. Funny, I actually had this on my mind a few days ago..

Buy Acai Berry

8/17/2009 5:03:43 AM #

Makes a lot of sense and thanks for explaining that! I finally get it :o)

How To Win The Lottery

8/27/2009 4:23:56 AM #

Great insights. I loved to read your article. You must be putting a lot of time into your blog!

Buying Selling Home

8/29/2009 3:02:22 AM #

I am not really sure if best practices have emerged around things like that, but I am sure that your great job is clearly identified. I was wondering if you offer any subscription to your RSS feeds as I would be very interested and can’t find any link to subscribe here

FSBO

9/16/2009 4:24:49 AM #

I admit, I have not been on this webpage in a long time... however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues.
Great stuff as usual....

Obama politics

9/16/2009 6:06:35 AM #

Dude.. I am not much into reading, but somehow I got to read lots of articles on your blog. Its amazing how interesting it is for me to visit you very often

Waterfront Property for sale

9/24/2009 1:10:57 AM #

There are still few bank mechanism that need improvement, I bet that the banks do anything to avoid this kind of situation, it's not profitable for them either. I realize now that those who catch a short sale in time are lucky.

San Antonio realtors

10/9/2009 11:12:02 PM #

I must admit that this is one great insight. It surely gives a company the opportunity to get in on the ground floor and really take part in creating something special and tailored to their needs.

krispy kreme coupons

10/12/2009 6:24:05 PM #

I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post.

New York Accident attorney

10/14/2009 10:59:15 AM #

This post is really worthy to read..thanks for sharing the this with us..i appreciate your work..this information is very much useful to me..

Dubai SEO Services

10/24/2009 1:56:12 AM #

its simply because they will dont have much profit on short sale offers

Technical Sales Jobs

10/29/2009 11:43:25 PM #

What can a real estate agent and broker require you to sign in a real estate deal?

Brisbane Real Estate Agent

10/30/2009 5:37:09 AM #

They can't require you to sign anything. However, you will need to sign everything they require in order to close on a transaction. The most common items would be the PA (Purchase Agreement) any addendum's and if there are any disclosures statements required by the state such as a lead based paint disclosure and any addendum's required by the bank if the property is a short sale or an REO.

Mike Jacka

1/3/2010 9:33:25 AM #

While surfing Google I located this post...very informative! I enjoy informed about this kind of info. I'll certainly bookmark your site for additional review

Arizona Homes

2/20/2010 8:22:03 AM #

Well, what a fantastic information site. You obviously know what your subject matter! I studied it with great interest and look forward to the next article. I have used your rss feed to stay informed on any more updates. The site is very easy to navigate as well, I've added it to my favourites also.

elottery syndicate

2/21/2010 4:01:53 PM #

Thanks for creating a post about this. You have a lot of wonderful information here on your website. I am very impressed! I try to keep a couple blogs fairly live myself but it's a struggle sometimes. You have done a very good job with this one. How on Earth do you do it?

NCIS Fan

2/24/2010 12:58:56 AM #

I was just browsing for relevant blog posts for my project research and I happened to discover yours. Thanks for the useful information!

sports betting system

2/27/2010 1:18:36 PM #

It is a lot easier now compared to the days when people have to make use of the telephones and other mediums of info just to get the latest updates on the way their program is coming along, I hope you have a good day!

Alfred Bogel

3/2/2010 6:21:33 PM #

Hello, I appreciate you creating this page as it has tremendously helped me. Keep blogging, this work is great!

Josephina Chelton

3/3/2010 6:59:41 AM #

Thanks for that enormously amazing article.

Laser Whitening For Teeth

3/5/2010 7:42:53 PM #

Thanks for a awesome post. Btw Love the site design

Kristie Janoff

3/5/2010 10:01:53 PM #

Hey, thanks for making this post as it has helped me a lot. Continue blogging, this content is great!

Penny Hertenstein

3/24/2010 6:13:33 PM #

Whats happening, I discovered this site by error when I was going through Aol then I arrived to your web site. I have to say your website is interesting I really like your theme! Currently I don’t have the free time at the present moment to totally browse your sitebut I have bookmarked it. I will be back in a day or two. Thanks for a great site.

Mozella Trauth

3/26/2010 5:26:29 AM #

Very interesting post about Mike Jacka | Why are Banks so Slow to Respond to Short Sale Offers?. I loved reading it. Are they genuine images or has the artwork been touched up. Thanks for blogging this great information.

xbox 360 bundle

3/30/2010 7:29:11 AM #

I see a lot of interesting articles here. Bookmarked for future referrence.

make profits on betting

4/3/2010 1:29:42 PM #

This is an awfully awesome column you have put up there!

Watch Letters To God 2010

4/3/2010 2:50:20 PM #

This is an incredibly high quality article you have posted!

Download Letters To God Movie

4/3/2010 3:44:21 PM #

Thank you so much for that enormously good quality post.

Bad Credit Mortgage Home Loan

4/5/2010 8:37:33 AM #

This is an exceedingly splendid article you have written there!

Teeth Whitening Side Effects

4/9/2010 5:50:44 PM #

That's a very nice post , I wished I could have learned that a few years ago. Oh well, that's what you're here for right?

Mcfarlain@pizza in san diego

4/16/2010 12:05:20 AM #

This is fabulous article ,the content which is given here is truely useful for all.All the information is good explained. This is great,Thanks for sharing,

spraywhite

4/21/2010 11:41:13 AM #

Excellent read, I just passed this onto a colleague who was doing a little research on that.

Sally

4/30/2010 2:43:39 PM #

You really know how to write good blog posts

Free Bikini Pics

4/30/2010 5:29:11 PM #

Hi, I wanted to make a comment about your blog itself if that's okay. You do a great job posting helpful information, but I would recommend more pictures/videos to keep readers interested. Other than that, I find your posts really well-written and I appreciate that you use good grammar.

fap

5/1/2010 3:45:34 AM #

Point well made, I never had the chance to visit your website but I will definetly visit again.

Laurie Sales

5/2/2010 4:57:20 AM #

I’m so glad that I found your web page. I never got around to check it out until now.

Benedict Wahlund

5/10/2010 8:29:17 PM #

I really wish I could write as well as you

watch world cup soccer live

5/17/2010 2:37:58 PM #

Such a Great job in your blog. It is very informative and to the point. I will be giving it 5 stars and look forward to reading additional within the future and hope you have a great day.

vga to svideo

5/28/2010 1:18:21 PM #

May God Bless You!

backlinks analyzer

5/29/2010 3:24:13 AM #

I have visited your posts before. The more I learn, the more I keep coming back!

Matthew C. Kriner

5/30/2010 4:11:39 PM #

Hey I just desired to let you know, I really like the written substance on your website. But I am utilising Chromium on a machine running version 9.04 of Ubuntu plus the search and really feel aren't pretty satisfying. Not a strong deal, I can still essentially understand the articles and search for info, but just desired to inform you about that. The navigation bar is form of challenging to use using the config I'm running. Maintain up the superb function!

Son Rowser

5/31/2010 2:42:04 PM #

Fascinating blog on foreclosure
Graci

Steve

6/1/2010 4:14:39 PM #

Awesome article, keep writing

Brian Symour

6/2/2010 9:50:02 AM #

Hello guys, excellent site, very rich in content and correctly carefully thought out, personally I found here much interesting and useful

online fax review

6/4/2010 5:48:09 AM #

thanks !! very helpful post!:[

louis vuitton

6/8/2010 1:00:05 AM #

Thanks for this insightful post. The info I have gained from your blog is truly inspiring

replica phones

6/12/2010 9:34:14 AM #

I think your post and site is wonderfully constructed. I found it whild doing some research on the topic. You present this in a way not many others see. I hope to be checking back from time to time to see what else you have to say on other topics.

port charlotte web design

6/16/2010 2:05:08 AM #