Having Trouble With Short Sale
The bank says that they need to approve current homeowner (who is behind and in danger of foreclosure) before even considering a short sale. Does this sound right? They say they need proof that homeowner does not have a surplus of income. Doesn't the very fact that she is going into foreclosure show adequate proof of this. Why would the bank give someone who is trying to help them and the homeowner out of a bad situation the runaround?
Thanks in advance,
Marc
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Banks have shareholders they need to answer to...they need to document their files. In this case, the Seller/Borrower ought to have the docs prepared already!
Typical criteria for mortgagee short sale consideration include the Seller's demonstrated financial hardship, an inability to payoff the mortgage without mortgagee's short sale approval, the property to be sold in an as-is condition, and the Seller receives zero proceeds from sale.
Different lenders have different criteria for considering short sales... Some mortgagees cannot even consider a short sale.
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Question: The bank says that they need to approve current homeowner (who is behind and in danger of foreclosure) before even considering a short sale. Does this sound right?
And
They say they need proof that homeowner does not have a surplus of income. Doesn't the very fact that she is going into foreclosure show adequate proof of this. Why would the bank give someone who is trying to help them and the homeowner out of a bad situation the runaround?
Answer: Yes this is correct, as many lenders must justify with proof of all the facts. They are not giving you a hard time they just need to justify to boards, FDIC if insured, federal and state regulators of the necessity of a short sale
This is the very reason why every person that is in danger of foreclosing is not an ideal short sale candidate. The homeowner's hardship is often forgoten when pursuing a short sale.
I would not say that they are giving you the runaround your offer needs to be backed by facts.