C.A.R. Places Open Letter Ad in Top California Newspapers, Calls for Short Sale Reform

LOS ANGELES--(BUSINESS WIRE)--In an effort to bring attention to the broken and ineffective short sale process and galvanize industry leaders to help resolve the issue, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) today has placed an open letter advertisement in California’s seven largest daily newspapers, calling on lenders and industry regulators to streamline and improve the short sale process.

“Poor and slow service by many banks and servicers have only exacerbated the problem. Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery.”

The letter, placed in a full-page ad in today’s Los Angeles Times, San Francisco Chronicle, San Jose Mercury News, Sacramento Bee, San Diego Union-Tribune, Bakersfield Californian, and Fresno Bee cites that more than 640,000 Californians have lost their homes during the past three years.

“With the number of homeowners who owe more than their mortgage is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012,” said C.A.R. President Beth L. Peerce, under whose signature the letter was written. “Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.”

C.A.R. advocates that short sales can play an important role in California’s economic recovery by accelerating the pace of home sales and reducing the inventory of bank-owned homes on the market. “Homebuyers who can qualify for a mortgage at today’s low interest rates also are able to purchase a home at below-market prices. Banks get a nonperforming asset off their books and avoid the headaches associated with disposing of assets they don’t want to own in the first place. Neighborhoods have fewer abandoned homes and local businesses have more customers with money to spend,” the missive states.

However, it goes on to note that many homeowners are unable to successfully negotiate a short sale because lenders’ short sale processes and procedures vary widely. “Poor and slow service by many banks and servicers have only exacerbated the problem. Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery.”

C.A.R. has been taking steps to enable more families to arrange a short sale. It has appointed two distinct task forces to help address this issue. It recently advocated for improvements to short sale guidelines established under the federal Home Affordable Foreclosure Alternative (HAFA) program and has met with major banks, U.S. Treasury officials, and other industry leaders to urge them to standardize processes.

“But we can’t do it alone,” said Peerce. “That’s why we’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery.”

View the open letter. (http://car.org/newsstand/news/openletter)

Leading the way...^® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.