Can a bank take ownership of a short sale?

Can a bank take ownership of a short sale?

“Some banks may even prefer to pursue a foreclosure, since they not only assume ownership of the property but may receive bailout money from the homeowner’s mortgage insurance policy,” says Marlene Waterhouse, a real estate agent and the owner of Short Sale Solutions.

Why are there so many short sales in real estate?

According to recent data from real estate information company RealtyTrac, about 5% of all single-family home and condo sales are short sales. Often homeowners are pushed into a short sale by personal financial troubles that make it impossible to pay their monthly mortgage to their lender.

How long does it take for a short sale to close?

A short sale typically takes 90 to 120 days, or even longer.” The reason for these holdups is that the mortgage lenders—which are stuck paying for closing costs that a seller would typically cover—will often counter with their own demands in an effort to raise their bottom line.

How does a short sale work in a foreclosure?

A short sale enables homeowners to stay in the home until the sale is completed. A foreclosure forces homeowners to vacate. While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the seller pays nothing; the lender or bank foots the bill. The short sale process

How many people have a short sale on their home?

In 2012 alone, short sales accounted for 22 percent of all home transactions. By 2010, almost one-quarter of U.S. homeowners had underwater mortgages, with balances exceeding their property values. But many of those homeowners are venturing out into the home buying arena.

How long does it take to get a mortgage after a short sale?

Her servicer had incorrectly reported her short sale as a foreclosure to the credit bureaus, and the error had to be fixed. Buyers with foreclosures on their records must wait seven years before they can qualify for conventional mortgages.

“Some banks may even prefer to pursue a foreclosure, since they not only assume ownership of the property but may receive bailout money from the homeowner’s mortgage insurance policy,” says Marlene Waterhouse, a real estate agent and the owner of Short Sale Solutions.

How long does a short sale stay on your credit report?

If the short sale is reported as a serious delinquency or derogatory item, it can stay on your record for up to seven years. There are a number of proactive measures prospective homebuyers can take prior to applying for a mortgage. Short sales usually appear on your credit report as “Paid/closed with zero balance.”