How can you find out if your home loan is no loner underwater!!? How can you find out when you do not need to Short Sale your home and a regular sale will do?! Well, the answer boils down to the Fair Market Value of your house which we routinely provide to our clients FREE of charge. Properties listed as ”not short sales” sold for 2 percent to 5 percent more than non distressed properties without the designation, Johnson’s data show. The ”not short sale” properties also spent less time on the market, selling about 10 percent to 15 percent faster than similarly situated properties.
Despite the improvements lender have made in managing Short Sales, there is still plenty of uncertainty that can derail a Short Sale. Some of the most critical one’s are:
1) Bankruptcy: If the seller files for bankruptcy while you have an offer in place for their house, the lender can NOT approve the Short Sale till the owner’s bankruptcy is discharged.
2) Foreclosure: Foreclosure clock does not stop when a Short Sale offer is being reviewed for approval. We have seen many homes sent to foreclosure while a Short Sale offer is being reviewed. This is where the experience of our Short Sale Broker or Short Sale agent comes in where they have to stay on top of both side of the bank to make sure they are talking to each other.
3) Trustee Sale date: If foreclosure date has been postponed once in the past 12 month, some lender will refuse to postpone it which adds more uncertainty to the Short Sale process.
4) Hardship: Just because a home has been listed as a Short Sale that does NOT mean the bank will approve the hardship. Yesterday we wrote about a San Jose Short Sale where one our own agents finally came clean that the owner can indeed pay for the mortgage and he has no financial hardship! The agent was not sure whey her Short Sale was being rejected which is another case of using expreienced agents who would not consider such a listing in the 1st place since the bank and the Freddie Mac who is the investor on the loan would not survive an audit.
Feel free to contact us if you have any questions on your Short Sale.