Missing Payments Mandatory To Complete Short Sale
Today we are going to speak about the number one query that we hear every single time that we deal with a short seller. Do I need to miss a payment? The short sellers that we deal with that are previously missing payments don’t normally ask. Nevertheless, the people that are being proactive regularly ask this question.
frequently the seller thinks that they can take money out of savings or take cash out of retirement or borrow money from family. They believe this may be needed to keep their credit score up. FHA essentially requires that the file is 31 days late. That is one of their necessities, that the property must be late in order to close. We are finding it more frequently. Investors are requiring the file to be late.
We suppose this may be the situation because they have so many folders to deal with. So, they don’t fret about the folders that are up to date because they need to deal with the files that are already late. We are also hearing that several lenders are telling house owners that call the bank that they need to be late for the lender to even look at the folder. This is correct for both loan modifications and short sales.
Is it feasible to get a short sale closed without being late? It may be feasible if the circumstance is urgent or it is foreseeable that the payments will be late. More and more however, we are finding that you have to be late to close a short sale.
Tune in again tomorrow when we talk more about short sales and the procedure of completing a short sale. If you are thinking about the short sale as a remedy to your current situation it is better to be proactive than wait for the lender to mail that ugly letter.
Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota