#3 Seller Myth In Short Sales; Defaulted Payments and Home Equity Loans Will Not Impact Short Sale Approval (Part II)

If all payments are up to date, you can ask your real estate agent and lender to offer your Deed in lieu of foreclosure.  In a nutshell, this is when you hand over your Title Deed to the bank before the foreclosure process begins. This can be a viable option – depending on your situation – but make sure you have the information and guidance you need from industry experts during the process, because nothing is ever as simple as it seems.

Another factor that comes into play is having an outstanding home equity loan or second/third mortgage. When multiple lenders are involved, this greatly complicates the approval process and lessens your likelihood of attaining short sale approval. The bank that holds your first loan will have the biggest say so, but the more lenders and loans that are involved, the more difficult it becomes to arrive at a short sale agreement to everyone’s liking. In many cases, the bank holding the second loan will not recover much money – if any at all – from a short sale. If your second loan is held by the same bank that holds the first, this will slightly increase your chances of approval.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: