Are Short Sales Still a Good Option?
Friday, July 29, 2011
I get asked all the time about the short sale process. Is it a good idea? How bad does it damage your credit? Why does it take so long? While the process can be extremely length at times, overall it is still a good idea for those in a specific situation. We all know that market values on the majority of homes has dropped and in some cases quite significantly. If you are willing to take a loss on your home and want out of your current situation then a short sale is a great idea.
It will have an impact on your credit report but letting your lender foreclose on you would be worse. If you are in the position where you would request a short sale from your lender you might not need to be worrying too much about your credit. Chances are it is already somewhat damaged from late payments from your financial burdens. One of the requirements lenders look at is financial stress when considering your request for a short sale.
The length of the process can be cumbersome for most people. The name of the process is a bit of an oxymoron as there is nothing short about the process. The good news is that congress is attempting to push through some legislation that would speed up the process. The length can be due to a backlog on your lenders end and then they may want to evaluate your request in several areas. Are you financially stressed to the point where they feel it would be worth taking a loss? Do you have a job? Gone through a divorce? Those things would help you in your request.
Remember though, your lender does not have to honor your request but most will right now due to not wanting to take on another home.
I get asked all the time about the short sale process. Is it a good idea? How bad does it damage your credit? Why does it take so long? While the process can be extremely lengthy at times, overall it is still a good idea for those in a specific situation. We all know that market values on the majority of homes has dropped and in some cases quite significantly. If you are willing to take a loss on your home and want out of your current situation then a short sale is a great idea.
It will have an impact on your credit report but letting your lender foreclose on you would be worse. If you are in the position where you would request a short sale from your lender you might not need to be worrying too much about your credit. Chances are it is already somewhat damaged from late payments from your financial burdens. One of the requirements lenders look at is financial stress when considering your request for a short sale.
The length of the process can be cumbersome for most people if they don't have advice that is wise. The name of the process is a bit of an oxymoron as there is nothing short about the process. The good news is that congress has pushed through some legislation that would speed up the process. The length can be due to a backlog on your lenders end and then they may want to evaluate your request in several areas.
I've learned the secrets to communicating successfully with banks and lenders. My team has great success with convincing the lenders to agree to the short sale offer.
Are you financially stressed to the point where they feel it would be worth taking a loss? Do you have a job? Gone through a divorce? Those things would help you in your request.
Remember though, your lender does not have to honor your request but most will right now due to not wanting to take on another home.
"That is a beautiful shot with very good lighting ." about Women Consider Owning a Home to be a Vital Component of the American Dream
on Sunday, May 12, 2013 @ 9:57 AM
Chris White - Team Leader said
"Unfortunately you are not alone. It's more than an outcry. The powers that be really need to come down harder on Bofa than they already are. Working on these short sale for over 2 years now I've uncovered down right fraud happening on the lenders parts. If they cared more about moving this country forward than protecting their own wallets then they would cut the red tape and approve these short sales in a timely manner. Our team made the wise decision to get BofA loans which were FHA or Freddie Mac backed, approved prior to listing on the market. Then we can list the home as "Price Approved" and close in 30 days. In this instance BofA does a full appraisal, rather than an incompetent "Broker Price Opinion" (nothing against agents but they have no idea how to make adjustments on comparable homes) and then the bank issues an "Approval To Participate" letter which dictates what price we can go on the market and take anything north of 88%. I really do hope your situation improves. " about Congressional Bill to Speed Up Short Sales
on Tuesday, August 30, 2011 @ 9:15 AM
Lisa Zeiner said
"We made an offer 4 months ago to BofA, and have heard nothing. It was a cash offer which is better than the zero money they are collecting now. And since the people don't care they are trashing the place, by the time BofA gets around to it our offer will be gone as the place is a mess!! Septic issues now, garbage being dumnped. All of this could have been avoided if BofA really wanted to correct their cash flow problem and sell these properties in a timely manner. They cry about cash but then do nothing intelligent to fix the problem" about Congressional Bill to Speed Up Short Sales
on Tuesday, August 30, 2011 @ 9:06 AM
Jones Ramirez said
"Thank you for the work you have done into this post, it helps clear up a few questions I had." about How do appraiser’s determine a homes value?
on Tuesday, April 19, 2011 @ 10:07 PM
HollyRobsonf said
"Hey - I am certainly happy to find this. great job!" about Bank of America to Offer Principal Reduction to Underwater Borrowers
on Wednesday, April 13, 2011 @ 6:45 PM