LOS ANGELES (AP) — Real estate agents in California are accusing banks of dragging their feet on so-called short sale transactions, where lenders allow homes to be sold for less than what is owed on them.

Nearly two-thirds of the agents responding to a California Association of Realtors survey released Tuesday say banks took longer than 60 days to respond to short sale offers, and that fewer than three out of every five such offers ended in sales.

The association has previously asked federal government agencies that oversee short sales to mandate faster responses by banks and take other steps to foster more of the transactions, which they say is vital to the housing market’s full recovery.

Mortgage Bankers Association spokesman John T. Mechem did not return a phone message.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (5)
  1. Rankin says:

    Sold mine in Dec. through GMAC faster than i expected.

  2. tyler says:

    It is true. I have a short sale pending and it has been 60 days and they bank hasn’t even called me to discuss the account. They do drag their feet and its terrible to the homeowner and agent. I have clients walk because it took so long to get an answer and the house goes into foreclosure. The banks don’t want to help people they are terbbile to work with. The government programs are just as bad.

  3. Eat Me says:

    So true. I bid & beg representatives on Foreclosure & short sale homes to call me back on the status of my bid & they never return my phone calls. Never got any responses on the homes i bid for so i’m just gonna wait for the next wave of Foreclosures to dip my feet back in again. Cash is King, if they don’t need the $$ that’s fine with me.

    I’ve heard the next big wave of Foreclosures is about to reset late this Summer or near the end of this year.

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