Delays In Processing "Short Sales" & Lender-Owned Foreclosures Frustrating To Those Involved

The Minneapolis Star Tribune reports:

• "If you believe the infomercials promising instant wealth from distress sales, then the record number of foreclosures should mean easy pickings for investors. But real estate agents and prospective buyers say that offers on many bank-owned houses go unanswered for weeks and that closings are sometimes abruptly canceled. Sales agents blame the delays on a growing backlog of listings and on ill-prepared mortgage companies that might be hundreds of miles away and grossly understaffed. Some experts say that buyers themselves are contributing to the problem by making unrealistic offers in hopes of snagging a bargain."

In one case, one agent reported receiving four offers on one home, but that none of the prospective buyers were willing to wait for the lender to process the offer, leaving the sellers closer to foreclosure.

For more, see Foreclosures become more than some bargain for (Buyers seeking quick deals on bank-owned homes are losing out to the industry backlog) (if link expired, try here).