I attended another "short sale" training session yesterday. Why? Because every session I attend gives me insight into the process. And it reaffirms my existing opinion that there is no cookie cutter recipe for a short sale.
I have heard so many different things as well as read various expert opinions on the short sale process. Likewise, my experience has been different than some I have heard or read about.
Some lenders say they will not consider a short sale unless the borrower is behind in mortgage payments. Some apparently will consider short sales even before the borrower is delinquent. Some lenders will not consider a short sale option until an offer/contract from a buyer is presented with the request. Apparently some lenders will consider the request before the property is listed for sale.
Who knows for sure? Each lender is different. I even heard the staunch anti-short sale lenders such as SunTrust will now consider short sales. At least that is the rumor.
In my opinion why would any lender not be willing to consider a short sale?
- Given the choice between a short sale and a foreclosure why not cut your losses? A foreclosure costs money.
- A foreclosed property has the potential of being vandalized or damaged in some way.
- Foreclosure properties have the reputation of being distressed properties which sell for less.
- When a homeowner is not making payments, the lender has to cover tax payments. Banks are in the business of lending money...not owning real estate.
So, why not accept a short sale?
Although the time period for completion of a short sale is very often from one to three months or more, they are an available option for sellers and buyers. So, patience is required in a short sale transaction!
Desire information on short sales in Brevard County, either as a buyer or seller? Please feel free to contact me to discuss your circumstances. Be aware that I am a real estate agent and not an attorney or accountant. For that type of advice, please consult the appropriate professional.
Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.
