Favorable Short Sale Lenders

Last Thursday while I was talking to one of my Gold coaching students on one of our coaching calls, he asked me who the short sale lenders are that he should be working with. I thought this would be helpful for your short sale biz as well so I posted it here for ya.

Here is the million dollar question that my gold student had about the lenders right now:

The Question:
Who are the good lenders to work with on Short Sales?
Can you post a list of the good and bad lenders?

My Answer:
Banks that are good to work with now may not be good to work with months from now and banks that are bad to work with now may not be bad to work with months from now. Because we negotiate a lot of deals for our students we are always keeping our hand on the pulse of the lenders.

I don’t recommend avoiding any lenders because all lenders will take a short sale if you justify your case and prove to them that it’s in their best interest to take the discount.

A lot of it comes down to the amount of contacts that you have inside the bank and how good of a rapport you have with the loss mitigators that you have relationships with at each lender. If you don’t know any reps in any banks and are trying get your deals done starting with customer service, your experience could be very different.

Here is a quick crib sheet of what some of the lenders are doing.

I went in to my loss mitigation department and asked one of my mitigators that wasn’t on the phone with a bank and this is what she rattled off the top of her head.

The lenders are changing so fast, this may not be the same list a month from now or a week from now. Some lenders are hiring people in their default departments as fast as they can and some lenders are being acquired by other banks. Some lenders suspend short sale negotiations during their merger process.

This is inside information from my loss mitigation department.
You can’t get better information than this.

Favorable Short Sale Lenders

1. Home Q – they approve quickly
2. WAMU- they also approve quickly
3 American Home, they approve, with only minimal wait.
4. Citi Financial, move very quickly with their files.
5. wells Fargo, they approve, if the no’s are right, they really stand behind the BPO
6. Accredited, they really work with me, approve quickly
7. ASC approves files, if you don’t mind waiting, they are trying to move quicker with the files, they have hired more Loss Mitigators so they are moving alot quicker that they used too.
8. Aurora, they do full appraisal’s, but will note repairs.

Short Sale Lenders I DON’T LIKE

1. Bank Of America, they will only accept 90% of market value, will only do a full appraisal, do not take into consideration any repairs.
2. Suntrust
3. FIRST FRANKLIN they hate our kind, & have no problem telling us so!!!
4. GMAC, they do approve, but if they are the 2nd. they do not walk away, would rather go to auction.
5. Ocwen
6. Indymac, they want to charge $300.00 processing fee.
7. Wacovia, they would rather go to auction, than take a reduction.
8. EMC they will stand behind their BPO, even when it does not make sense, you can send them as many comps as you would like proving your case, it does not matter.
9. Carrington Mortgage – they have their head up their #$$.

THE LENDERS WHO TAKE THE SHORTEST TIME.

1. Citi Financial, had an approval in less than 2 months.
2. Home Q moves quickly.
3. Wamu, once the bpo is back, they move quickly
4. Wells Fargo

ASC takes the longest, they have been the slowest lender yet, but now they have more staff, I believe that will change.

This is why it’s important to stay up to date on what’s happening with lenders on a regular basis.

We are in the Best Real Estate Investing Market than we have ever seen in our lifetimes.

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