Every so once in a while someone will say something about Lender Short Sales that blow me away. The most recent one was when a new client told me that her ex-real estate agent, who claimed to be short sale savvy, told her that it was not her place to know the financial details of the sellers hardship. This agent did not even have a disclosure authorization signed by the seller. Wow, if your going to represent yourself as qualified do the public a favor and get qualified. Don’t get me wrong as I think there are a lot of agents that know how to transact a short sale and if not there are plenty of schools on the subject to become knowledgeable and qualified.
Anyway this has motivated me to write a series of blogs on the many misconceptions I hear every day regarding short sales. The first and most common one is: “Lenders will not accept a short sale unless the client is behind on their payment”
This is so very untrue. If the lender understands that the hardship which exists will lead to a foreclosure they will be glad to do the short sale before there are late payments. It only reduces the losses to the lender. Hence the most important thing is that the homeowner must show a valid hardship and clarify that he will eventually begin to miss payments.
Also the homeowners short sale negotiator needs to understand that very often the file must get pushed into the lenders short sale department as there is no late payments that typically accomplish this. In addition, as there is no late payments the file may not have as high of priority as the file that is foreclosing tomorrow.
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