Jun 30, 2010

Tip 25-2010: Short Sales Review - 3 Basic Rules

Prior tips have outlined certain general rules regarding short sales. Unfortunately these rules have not changed; in fact, they seem more permanent and bear outlining again.

Rule No. 1—The most basic rule regarding short sales is “There are no rules”.
The short sale lender can do whatever they please, and this is especially true for second lien holders.

Rule No. 2—Short sales are like snow flakes. From afar each snow flake in a snow storm seems alike. But when you look at each snow flake individually, it is completely different from any other snow flake. Each short sale is uniquely different from each other. Each short sale has different twists and angles which must be reviewed and dealt with in order to obtain a successful short sale.

Rule No. 3—Short sales are never “short”. They should be called “Long Sales”. There is no such thing as a “short Short Sale”. With the backlog of delinquencies and the complexities of who is the investor or guarantor, the short sale approval takes an inordinate amount of time. Just request that everyone be patient and allow the process to happen (usually in the lenders own time frame).

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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