The eventual approval of a short sale is predictable but how long it takes is the frustrating question for sellers and buyers. The timing has a lot to do with who is the lender. Almost all lenders are understaffed and the quality of personnel is low as there is little experience in these departments. The processing time is now between 2 to 5 months. About 50% of the time the first buyer will cancel from frustration and a feeling that these "Short Sales" will never get approved. An experienced agent can prepare for this but at the end of the day the lenders will take as long as the need. They are not organized for quick results even though it is costing them millions of dollars.

We just heard that Ocwen Mortgage has a new policy regarding short sales. They now say that if you don't qualify for loan modification they may consider a short sale. Is this just talk or is it real? Stay tuned. We are going to find out because we have clients who are beginning this process.

Today most lenders are working with owners on short sales. Ocwen is the only lender that is not doing short sales. I wonder what their investors are going to think when the property sells one year after they could have sold it via a short sale.