If you truly want to know the answer to the question, “why” continue reading. This means you will have to take a step back from your particular emotional situation enough to really listen to what’s being said because everyone wants their deal approved NOW.
Banks are under no obligation to approve your short sale. I know what you’re thinking, reader. You’re thinking, “Well if the Bof A bank would just approve my short sale faster, they wouldn’t be losing so much money!”
A homeowner is said to be in a short sale situation when he or she owes more than what the home is currently worth, is in default and must sell. Traditionally, homeowners agreed to pay back the difference between what was owed and the sales price. The short sale seller signed a new, unsecured note at closing and promised to pay back the difference in regular monthly installments. The only cases where the debt was “forgiven” was for true financial hardship cases where there was absolutely no way the homeowner could ever repay the difference.
Why your short sale is taking so long to be approved is to inquire about whether the homeowner is asking the bank to forgive the difference or if the homeowner is gainfully employed and able to pay back the difference. This all must be proven and documented to the lender’s satisfaction. If the homeowner is asking for debt forgiveness, the short sale will take longer to approve if the bank does not have all the required documentation.
Why would any lender approve a short sale, especially one that requires debt forgiveness, unless there is proof that foreclosure is imminent? Answer: They won’t. Lenders have to weigh the costs associated with the short sale proposal against the cost of foreclosure. If a homeowner has not yet defaulted on their loan, the bank has little motivation to approve the short sale. Why not wait for a better offer to come along? (Note, homeowners reading this article should always consult with an attorney if you are selling short, in default, or will be in default on your mortgage loan(s).
Homeowners must prove that they do not have the money to make up the shortfall. This means sending in copies of all bank statements, tax returns, w-2s, and other supporting documents to verify that the homeowners is financially insolvent.
- Decade of Damage- Its Your Credit Which Is Better a Short Sale or Foreclosure? (annarborundressed.com)
- Short sales, a product that changes with the blink of an eye (agentgenius.com)
- Short Sale Tip # 7: Confronting The 1099 Issue In Short Sales (realestateradiousa.com)
First off, on 80-90% of all short sales, you won’t have to pay any money back. Second, you will be eligible to buy another house in 2-3 years (You have to wait 5-7 years after a foreclosure.) Third, a short sale costs you nothing.
When the home sells, your lender pays us a commission. THe lenders know they get more money from a short sale than a foreclosure. This is why most lenders are willing to pay all the other costs associated with the sale. I’ll show you how to short sale your property and never pay the bank another penny.
Send me an e-mail at email@example.com. 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 (770) 866-2561.
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Thanks for reading this, Roland Lorans.
Roland is a Real Estate Agent at Better Home and Gardens Real Estate Metro Brokers .
Phone: (770) 866-2561 or 404-843-2500 firstname.lastname@example.org.
View My homes for sale at SaveMyHome.com.
Roland Lorans specializes in loan modification assistance and short sales in Alpharetta Georgia . Alpharetta Loan Modification Help, Alpharetta Short Sales. Alpharetta Short Sale Realtor. Short Sale Realtor. Alpharetta GA Short Sales. Alpharetta Realtor.