A Short Sale negotiator
receives an offer and contacts the short sale lender to inquire about items
needed for the Borrower's specific short sale application. The negotiator explains
that the property is vacant and that the potential buyers will be ready to
close when approval is issued. The negotiator collects the required documents
and sends the entire short sale package per the lender's guidelines to the
lender for review. The lender denies the short sale because the homeowner did
not exhaust other work out options. (Keep in mind, when a property is
vacant, the Borrower will not qualify for a loan modification).
The homeowner applies for and
is denied a loan modification and then is allowed to move forward with a short
sale. During that time, though, the potential buyer loses patience and signs a
release of contract. Had the lender been forthcoming about the investor's
guidelines, the negotiator would have taken the necessary actions before
submitting a ratified contract and would have not wasted time submitting a
short sale package only to have the file closed so that the homeowner could
apply for a loan modification.
Accordingly, Short Sale
negotiators should inquire about investor guidelines with every short sale and
should have homeowners with government-backed loans apply for loan
modifications before proceeding to short sales.
Contact me at 434-951-0858 or Tucker@TGBLaw.com
if you have questions. Thank
you for allowing us to send you this email.
William D. Tucker,
III
Charlottesville, VA 434-973-7474 | Lake
Monticello (Palmyra, VA) 434-589-3636
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