Are the Banks Negligent, Indifferent, or Inefficient?

Whatever they are, their actions all too often spell financial loss for San Diego homeowners.

Here are 3 ways that loan servicers and asset managers are keeping some San Diego homeowners in distress.

1. Asset managers routinely delay their response to short sale requests.

Most San Diego home buyers want a “yes or no” answer within a few days of making an offer to purchase, but when they attempt to purchase a home in short sale status, they’re forced to wait. In fact, agents report waiting 6 months or even more just to get a yes or no.

The result: Many homeowners go into foreclosure while a ready, willing and able buyer stands ready to purchase.

The second result: Buyers withdraw their offers when their patience runs out. They made the offer because they wanted a home – so they move on and choose one that’s readily available. We can hardly blame them for that.

Those who are willing to wait for an extended period of time expect a bargain in return for their patience, and we can’t fault them for that, either.

This delay in responding to short sale requests causes many San Diego buyers’ agents to avoid showing short sales. It’s much easier to get an answer after a home becomes a bank-owned foreclosure.

Why do loan servicers delay response? Is it inefficiency, negligence, or indifference?

If banks wanted to protect their investors and help the real estate market rebound, they would make the short sale approval process as fast as possible. And they could. They could, but so far all they do is talk about it.

They could begin the property valuation process just as soon as they get the short sale request. They could also inject some common sense. After handling dozens of foreclosures and short sales in a given area, they should know market values. If homeowners knew the bank’s “bottom line” they wouldn’t waste time considering offers that were sure to be rejected.

* Should you short sale or shouldn’t you? Call 619-929-1413 or write td@tomdunlap.com to get advice from Tom Dunlap – San Diego’s top short sale specialist.

2. Banks routinely reject loan modifications that would prevent foreclosures and preserve neighborhood values.

While a few homeowners have been granted loan modifications, more have been refused. You’ll find no shortage of stories about homeowners who spent months submitting paperwork before being denied. Others have been granted trial modifications and faithfully made payments, then been denied.

And the guidelines are both unclear and conflicting. One representative tells the homeowner they must be in arrears to be considered – another tells them they must not be in arrears.

Many who “do not qualify” are wondering why. One woman I spoke with said “We’ve been managing not to get behind with our payments at $1,700 per month. But the bank says they’re denying our modification because we can’t afford $1,100 per month. Does this make sense?”

The result: Homes in foreclosure that could have been saved and neighborhood values dropping because of the presence of vacant homes.

Is it deliberate negligence, indifference, or inefficiency?

4. Banks that repossess San Diego homes simply don’t get them on the market in a timely fashion, and don’t maintain those homes while they stand vacant. And as we all know, vacant homes or poorly maintained homes bring down neighborhood values even as they erode the value of the house in question.

Is this because they simply have too many homes to deal with? Is it an intentional delay because they don’t want to flood the market with repossessed homes? Or is it because they have failed to develop efficient ways to streamline their processes?

Whatever the reason, entire neighborhoods have been damaged by the banks’ failure to act in a timely manner.

The good news for San Diego homeowners and short sale buyers is that we have developed systems and relationships with loan servicers that get our short sale requests pushed to the “front of the line.”

We can generally get an answer within 60 days or less, and because we know how to present our short sale requests and negotiate with the banks, that answer is usually “yes.” In fact, we have a track record of 98% success in closing our short sales.

No two short sale situations are exactly alike. When you want advice that applies to your specific situation, call 619-929-1413 or write td@tomdunlap.com to request a no-obligation consultation.

And if you already know you want to short sell your home in Carlsbad, Coronado, La Jolla, Rancho Bernardo, North County, Del Mar, Mission Hills, Kensington, Metro San Diego, or downtown San Diego, or if you’d like to purchase a short sale, get in touch.

We’ll be glad to explain the short sale process, tell you what you can expect as a buyer or as a seller, and show you why we get good results while so many who attempt short sales fail.

We look forward to talking with you… so get in touch and we’ll set a time to get together.


Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.

This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.