C'Mon Countrywide! Countrywide's Flawed Short Sale Process

Everyone that works in the industry knows that Short Sales (link goes to a description of what a short sale is)are a pain.  The biggest issue we have with banks over the short sale process, is the complete lack of common sense that they use.

Those of us that have to deal with the banks directly are used to the run arounds.  But these are people's lives, and more important to the banks, it's their bottom line!

An Example:

River City Real Estate submitted an offer to Countrywide on November 3rd.  We were told we'd have an answer in 14 days after an appraisal was completed.  That date came and passed and the appraisal wasn't completed.  The buyers were frustrated but still stuck with it becuase they loved the home.  Another week and a half passed and finally the Appraisal was received.

  However, at this point we were then told they would need another week before it would be assigned to a negotiator and we would then finally have an answer.  The date we were promised to receive an answer came and went last week.  Then we were told we'd hear Friday, nothing.I called in "we don't know anything yet."  Then Monday, nothing.  Today, I called myself to try and get someone who could give it to me straight.  "It's currently with a Phase 1 negotiator, you won't know anything for at least another week."  

So let me recap this for you:  After 45 days, we know nothing more than we did the day we submitted the offer to Countrywide.  We also know that we probably will not have a definitive answer with someone signing off on it until the 60th day after we submitted the offer.

What primary home buyer is willing to wait this long?  Do you think these people are getting such a good deal that they are willing to wait?  That's simply not true!  In fact, these Buyers could offer on the house down the street that's similar but listed lower than than the offer they submitted 45 days ago.

Why does a bank allow a short sale to take place?   Becuase they will lose less money on it before it forecloses than after.  They save money on attorney's fees, clean out fees, Realtor fees, and more.

Countrywide had to be bailed out by Bank of America.  They were losing hundreds of millions, and by some estimates now, billions (yes with a B) on these bad loans.  Well maybe they would lose less if they had a better process and made decisions that made sense instead of shuffling paperwork for 60 days before getting an answer.  

Think about the implications.  Countrywide would get the loan off their books in 30 days not 90-120.  That's two months faster they would have the loan paid off and a bad loan off their books.

The other issue at play here: Most other banks can handle this within 3 weeks.  Even Wells Fargo, the other large nationwide lender can handle the process within 30 days usually.

So this begs the question, Countrywide, why can't you get your act together to save you, your investors, and your clients some heartache and money!?  Why not turn a tough situation for all into an opportunity to shine and look like a hero?