Lenders Becoming More "Short Sale Friendly"?

From the anecdotal short sale front, the news appears to be improving. Lenders are facing reality and becoming less cavalier in their disdain of short sale offers. They are actually accepting prices that reflect the market! Of course, your experiences may vary, but word from my agents and colleagues are that a few things are improving: 1. lender response is a "little" quicker and more importantly, 2. lender pricing is more realistic. The only caveat is that buyer agents MUST have everything in order. Whatever the lender package requires, it would be inexcusable to leave anything out.

My theory as to why lenders are accepting the short sale offers is that the "credit crisis" has them squeezed for cash. They need money NOW.  Banks are facing federal penalties/auditing/scrutiny if their cash position continues to drop, or worse, bankruptcy proceedings. As a result, they have to consolidate as much liquidity as possible while also eliminating/write off as much losses as possible while their investors are still open to these write offs.

What does this mean for us? Short sales transactions may finally be cost effective to pursue. So yes, one should start marketing short sales at those projects completed in the last 3 years, such as Eastern Columbia, 1100 Wilshire, Luma and Sky Lofts.

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