Things You Should Know About the Short Sale Process

Does a homeowner have to be behind in their mortgage payments before a bank will consider a short sale?

Recently, there was an article put out by a real estate information site that stated that a homeowner DOES NOT have to be behind in their mortgage payments to qualify for a short sale. The article was written by a company that offers a paid service to negotiate short sales. I asked this question to two of the “Big 5” banks to confirm the information. Here is what they had to say:

Bank 1: Their decision to allow a short sale is determined on a case by case basis. The bank will not advise you to stop making payment just to qualify for short sale consideration.

Bank 2: They will consider a short sale for a homeowner that has been paying their mortgage on time; however, there is a qualification process to determine if they are eligible. For instance, the bank will not want to see a lot of other assets. However, the investors that hold these loans don’t necessarily want to hear your story….

To be safe, I would suggest that if you are a homeowner considering a short sale for your own property…call the mortgage company. Going with the case by case theory will allow you to get all the information as it pertains to YOUR situation. Always get the facts and then make a decision that is best for you and your family!

Our team will continue to research short sales and let you know what we find out as far as the banks are concerned and what they are doing…this is a changing climate.

To begin your journey click the button below or please call Hillary Caston & Associates now at 949-415-6786.