Feeling Sorry for "Nadine"

With the recent surge in the percentage of short-sales in the entry-level market here in the South County, I happily invested a couple of hours attending a seminar on new short-sales techniques the other day. The major impression I returned with from the seminar was that the lenders holding under-water mortgages still don't get it! And while there are some very positive steps being taken by the major real estate brokerages, in many ways they are missing the boat as well.
Yes, the loan negotiators (one ficticiously named "Nadine"was used as an example throughout the discussion) are over worked, burdened by tons (literally) of paperwork, stressed out beyond belief and harassed by their managers and by real estate agents trying to hurry the process. They also have to deal with agents who don't know or follow what little process exists in closing a short-sale.
Nonetheless, the lenders don't seem to get the fact that a short-sale is the best and fastest way for them to minimize thier financial risk and maximize the possible return on their precarious investment. Instead of implementing processes (for example, having the loss mitigation folks talk to the foreclosure folks, consistent documentation requirements, etc.) that would speed up the process (the typical short-sale still takes from 8 to 12 weeks or more just to get approval on an offered price before the offer can begin moving through escrow), most lenders respond to their frustrating position by stone-walling qualified, ready and willing buyers and their agents.
The major brokerages should band together and submit a standard short-sale documentation set and step-by-step flow sheet to the major lenders to achieve some organization in the process. At present shorts-sales are defined by the phrase "the only thing certain about a short-sale is that there is alot of uncertainty". With lenders receiving on average 70 to 80 percent of the total outstanding loans on completed short-sales compared to 50 to 70 percent of total loans in a foreclosure, there is definite financial rationale for meaking short-sales work rather than going to foreclsoure.
Yes, I feel sorry for all the Nadines, but I also see that lenders and brokerages are missing an opportunity by not cleaning up the short-sales "process". Lenders need to recognize that short-sales are indeed their best way to exit a bad situation. Rather than developing proprietary documentation packages to gain an "edge" competitively, brokerages should get together and drive the organization and facilitation of the approval process. Improvement is needed and it would be in everyone's best interest, especially the buyers.