It's Financial Insanity As Mortgage Lenders Continue Hemorrhaging Billions

May 22, 2026 - Hollywood, FL - Lenders are hemorrhaging billions as chronically absurd short sale processing times drive away frustrated buyers and exponentially contribute to their losses.

"A Short Sale allows a homeowner who owes more than the property's value to sell with lender approval for a short payoff," said Edward Goldfarb, a 36-year Realtor Registered with five distressed property certifications. "Yet the process routinely drags on for 6-12 months due to delays, missed timelines, expired documents, and repeated paperwork requests. Buyers cancel repeatedly, forcing the entire process to restart."

Goldfarb notes that agents invest thousands of unpaid dollars and hours marketing properties, negotiating offers, and assisting homeowners-only for lenders to ghost calls and emails. Meanwhile, carrying costs (taxes, insurance, legal fees) mount. When short sales fail and proceed to foreclosure, lenders face an additional $40,000-$50,000+ in costs per property.

Successful short sales consistently deliver better recoveries than foreclosures, yet systemic inefficiencies discourage agents, prolong homeowner stress, and worsen property conditions.

Goldfarb's proposed reforms:

* Allow the original listing agent to manage the property as REO if the short sale is denied. If the property is foreclosed, give the first right to purchase to the buyer that's waited months for the short sale approval.
* Offer fair compensation or incentives to agents for successful short sales.
* Treat agents as valued partners in loss mitigation.
* Require bi-monthly status updates from lenders.
* Mandate short sale approval times of 45 days or less.
* Eliminate Buyer Specific on non-arm's length short sales.

"Everyone loses under the current system," Goldfarb said. "Faster, collaborative processing would improve recoveries, reduce foreclosures, cut costs, and benefit homeowners, agents, and lenders alike."

Goldfarb invites lender executives to partner on practical solutions.

About Edward Goldfarb

Edward Goldfarb is a Realtor Registered with United Realty Group specializing in distressed properties and foreclosure prevention. A frequent speaker and media commentator, he advocates for fairer, more efficient loss mitigation practices across Florida.

For interviews or more information: 954.605.8427 or EdGoldfarb@Realtor.com [mailto:EdGoldfarb@Realtor.com].
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