Short Sale Report - Washington Mutual
Short Sale Report
| Avg. Days NOD to NTS | Avg. Days NTS to Auction | Total Avg. Days in Foreclosure | Commissions | Comments |
| 597 | 109 | 706 | 3% to 5% | 3 |
NOD=Notice of Default NTS=Notice of Trustee Sale Auction=Trustee Sale
There are more problems with WaMu loans now that they are inside of Chase. They seem to keep getting assigned and reassigned to different negotiators. Chase is trying to integrate the WaMu portfolio but it is taking much longer than expected.
Time to Foreclose:They appear to be willing to postpone the sale since it is taking approximately 131 days from the filing of the Notice of Trustee Sale to the actual sale date. This COULD mean that you have time to negotiate a short sale even if the Notice of Trustee Sale has been filed.
Comments
BLEAH! They won't reason. They won't listen. They won't negotiate. Why bother? Gave them offer in December. Through constant follow ups through the months, they finally respond in April, with no room for negotiation. Why put us through this hassle for an extended period of time? The loan negotiator isn't a negotiator... just someone who reads the instructions of the day, and the instructions say, "NO!"
Our WaMu experience defies business sense and should be taught as an MBA case study for incompetent operations and process management. Today is day 400 since we started short sale process. They hold a non-performing asset in a slightly falling market and still cant say yes.
We've had WaMu automatically delay a deal for 8 weeks so WaMu could fiddle with a loan mod the seller had previously declined in writing. New buyer. After 4 months, nearing completion, we had the negotiator not return after Christmas - requiring us to start at the beginning. New buyer. We waited another 5 months, with a very professional negotiator, and the BPO was absurdly 30% over market. New buyer. As you can guess, buyers become frustrated and walk- they want a home in which to live. We've had 6 buyers and 8 negotiators, and each buyer offers less than the one before. If you were running a business, do you think there's a pattern here? The staff with whom I've spoken all know this is an obvious problem, so why doesn't management fix it?
When realtors see a DOM of 400 they write lower offers. The delays in their process literally are driving the price lower, as interested buyers become frustrated and walk.
What's impossible to comprehend is why WaMu/Chase requires the process to start over from the beginning when a buyer backs out - even if a new buyer offers a higher net than a previously approved deal. Why does WaMu care who the Buyer is as long as they'll take a non-performing toxic asset off their balance sheet? If you're a JPM Chase or WaMu exec call me to explain that business model.
See my related comments under Chase as a result of the transition to Chase operations. Basics: There is no commitment from the top of Chase to fix the problem. They don't compensate the loss mitigation and short sale people for completing deals, so deals don't get done. They obviously can't attract and retain talented people with that kind of comp plan.
What I do see is a motivation for Chase management to hide the toxic assets on the books and not have to mark down the loss until sold, rather than as mark-to-market. This has enabled Chase to show a "profit" that results in bonuses for Chase management. Before the acquisition Chase projected WaMu asset losses at $31 billion, but this kind of operational incompetence, combined with the continued recession, makes that number an optimistic fantasy.
Recently made an offer on a short sale for a client. My client's offer wasn't accepted initially. But now it appears the buyer may back out because the 2nd holder (WAMU) wants 43% of the note value ($100K+)!!
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