Short sales (where the lender agrees to accept less than the mortgage amount due on the sale of a property by a seller) have never been easy to complete. We are not suggesting that they now will be easy. However, there is mounting evidence that the banks are seriously favoring short sales over the option of foreclosure. I have successfully closed two recent short sales that just a couple of years ago would have been emphatically rejected.
One property had been in the family for years and had been refinanced and used like an ATM machine. The other part of the equation that would have completely cancelled out the short sale option was the home was strictly an investment property and had been tenant occupied for many years. Banks had not in the past taken kindly to investors that were pursuing a short sale. That was explicitly for sellers that were occupying their property. The rent from the tenant would have been viewed as additional income to the seller and would have been viewed harshly by the bank considering the short sale in former times.
The other successful short sale had a first and second with two separate lenders, which was taboo and virtually impossible to negotiate just a few years ago. Not only are you haggling with one bank, but toss in another disgruntled bank and you would have probably had little chance getting approval from both not long ago. Even if this scenario was brought to a favorable conclusion then, it might have taken six months or longer to get approved. From start to finish, this short sale took two months.
Both of the sellers had to qualify for a short sale and create a hardship letter to the banks that would have likely been one of the seventy five percent of short sale applications that were rejected in years past. Approximately one in four short sales were approved then, that number has drastically risen as banks are more apt to negotiate fairly and quickly. This is great news for sellers that find themselves in this predicament and buyers that can now see the likelihood that bidding on a short sale is not just a waste of time. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.