Q: I went under contract to buy a house six months ago. This is a short sale, and I understand that multiple lenders are involved. But I have been more than patient. What can I do?
I can’t seem to get anyone to listen to me. Don’t the banks want this to work out?
A: I’m sure that someone besides you wants this sale to work out — the seller! The problem is that each lender has to agree to the short sale, and lenders are drowning in non-performing home loans these days.
For a short sale to proceed, a lender will require quite a bit of documentation from the seller to determine whether the short sale is legitimate and whether the seller has the ability to make up any deficiency. A lender will also want to determine whether it would get more money if the seller simply defaulted on the purchase and the lender foreclosed on the property and sold it off.
These are some of things banks consider before allowing a short sale. The problem is that they just don’t have the staff to handle the load of short sales and other requests from distressed borrowers.
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