Chicago Short Sales: Is your short sale lender delegated?

Posted on October 11th, 2010 in All Articles, Short Selling/Buying.

Chicago IL – Most people are shocked to learn that 80% of all loans held by Bank of America are not owned by Bank of America. That means someone else owns those loans.

A large majority of these loans are owned or insured by Uncle Sam. They own them outright thru Fannie Mae & Freddie Mac. And they insure the actual owners against loss thru FHA and VA.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

The rest of the loans are owned by Wall Street Firms, Hedge Funds, Pension Funds, and other various investors. So who makes the decision on a short sale?

It depends. If the loan is “delegated”, then Bank of America can make the decision to approve or deny the short sale. The actual owner of the loan has “delegated” the authority to make a decision to the lender handling the loan.

Usually a supervisor at Bank of America will make the final decision. This is an advantage because you are able to get an answer faster on the short sale.

A Non Delegated Short Sale can drag out longer. First you have to submit everything to the short sale lender. They look everything over.

They will ask you for any missing documents or anything else needed for the file. Then they submit the complete short sale package to the loan owner. The loan owner looks everything over and makes a decision.

The first question we ask when negotiating a short sale is, “Are you delegated.” I want to know who the decision maker is on the file. This improves the odds of getting the short sale approved.

Here are a few guidelines for whether or not a short sale has been delegated. Is the loan one of the following?

FHA Loan. Not delegated. The lender assembles a package and submits to FHA for approval.

Fannie Mae Loan. Sometimes delegated, but not always.

Freddie Mac Loan. Our experience is they usually are not delegated.

VA Loan. Not delegated. The lender assembles a package and submits to VA for approval.

Sliced and diced loan (Wall Street Owned.) Almost always delegated.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Remember to visit my Chicago short sale blog frequently for greats tips and information on Chicago short sales

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725.

View My homes for sale at

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on how short sales affect home values in the neighborhood is provided as a courtesy to our viewers to help them make informed decisions.