Short Sales have become a norm in the real Estate industry in the past couple of years.... but have the rules changed ? yes and no. A short sale is still a very good and viable option for someone looking to avoid foreclosure on their home. The loss is a lot less than if the home went to foreclosure and the stigma that accompanies it is not as devastating.
But, whether a bank will consider a short sale varies with each bank. They all handle the process in a different manner. Some require paperwork up front to approve the client for a short sale and others will only consider the short sale when an offer is presented on the home. Some will order a BPO (Broker Price Opinion) up front and others will wait. Some will get you responses in two to three weeks; while others you could six months or longer.
Hardships are another gray area sometimes now.... Some banks will consider circumstances beyond a homeowners control such as job loss, medical issues, job transfers as a legitimate hardship. Other banks want more information or will not do a short sale even if those parameters are met. Some banks will require promissory notes for the balance and other banks not.
Even with acceptable hardships, I have had some banks refuse a short sale even after they refused a loan modifcation because the seller was not behind on the mortgage payments and others that worked with the seller because of the circumstances of the hardship.
The bottom line is make sure your Realtor knows the bank you are dealing with and how to handle a short sale.... There is no standard guidelines used today across the board by the banks. Each and every bank handles their short sales differently....It could be the difference beteween getting your home sold and not.
Dave diCecco
Realotr/Broker
www.davedicecco.com
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