The answer to the question if Short Sale Processes are the SAME for all banks is a resounding NO! Despite the fact that most US banks now NET more money on Short Sales, the extent to which they are cooperative in Short Sale negations varies greatly from Bank to Bank. A case in point is out current Short Sale property in San Jose, California where the 1st lien is held by IndyMac which went under several years ago and it’s assets was acquired by OneWest Bank.The 2nd Lien holder is Wells Fargo Bank.
Despite the fact that we have provided the identical information to BOTH banks on:
1) Hardship Letter
2) Financial Statements
3) List of Assets and Liability
4) Pay Stubs for 30 days
5) Taxes for the past 2 years
6) Income & Expense Statement
7) Listing Agreement
8) HUD -1 Settlement Statement
9) Fully Executive Purchase Contract
10) Fully Executed Short Sale Addendum
However, it’s remarkable how these two banks conduct their business differently. Wells Fargo folks are cooperating with the Short Sale negotiations and within 1st week of the file being submitted to them, they assigned a negotiator. IndyMac folks on the other hand claim that for their processing of the Short Sale to begin, the home owners have be delinquent for at least 30 days!
This is rather ironic since the banks have been struggling to bring the delinquent homeowners to the Short Sale Negotiations table and now that one has volunteered to show up; they are penalizing this owner by ruining her credit.