Short Sales
Rest assured my clients best interests come first
Lenders have a department (typically called “loss mitigation”) that processes potential short sale transactions. There has been an increased acceptance of Short Sales even after a Notice of Default has been filed against the property due to the cost of the Foreclosure process. Lenders stand to loose less money accepting the sale of a home Short rather than go through the foreclosure process. Most borrowers anticipating a Short Sale are either behind in their payments or their property value has decreased significantly making them unable refinance their homes to keep them. This is the type of distressed borrower who needs a short sale the most.
Now, with that said not all Lenders are willing to allow the process of selling short without the borrower first meeting certain criteria. There needs to be a good reason for them to negotiate the short sale.
Income status is the number one reason homeowners are having a difficult time making their payments. Interest rates on the adjustable rate mortgages have doubled their payments, making them unable to adjust to the higher monthly payment. Lenders are needing to see a financial hardship in other words. Lenders want and require the homeowners to provide PROOF on their hardship in numerous different ways in order for them to entertain accepting a Short Sale versus proceeding with the Foreclosure.
There can also be many multiple levels of approvals that would need to be approved in order for acceptance of a short sale to proceed. This would include a lenders involved in this acceptance of selling short, which can include a second lender or HELOC. All parties have to agree to this process before the home can sell as a short sale. If Mortgage Insurance was a requirement on the property in question then this to will make them a part of the approval of selling short. . It is possible for junior lien holders to prevent the short sale.
Because of the array of all parties, criteria and the processes involved in a Short Sale, they need to be handled by someone knowledgeable and experienced in the process. I have this knowledge. Please feel free to contact me at anytime to discuss your needs, or answer any questions you may have.
