Why is my short sale being rejected?
A short sale is sometimes denied due to something as simple as the seller being current on paying their mortgage. The bank’s guidelines might state the bank isn’t allowed to approve a short sale if the mortgage payments aren’t in arrears.
How long does an unapproved short sale take?
Be aware the short sale process could take much longer than a traditional home purchase. Even with a qualified agent, it’s not uncommon for short sale transactions to take six months or more to close.
Can you force a short sale?
Short sales are voluntary and require approval from the lender. Foreclosures are involuntary, where the lender takes legal action to take control of and sell the property. Homeowners who use short sales are responsible for any deficiencies payable to the lender.
Is there a way to stop the short sale process?
Even after you’ve been approved for a short sale, you have several ways to stop the process, most of which let you regain full ownership of the home. Start a loan modification. Under the federal Home Affordable Modification Program (HAMP), many homebuyers can qualify for lower payments that can help them stay in their homes.
When does a lender approve a short sale?
When a lender approves a short sale, it’s agreeing to sell the property for less than the outstanding mortgage balance against it. There’s something in this for the lender when foreclosure seems inevitable.
Can a short sale cause a foreclosure to go through?
Some lenders will postpone foreclosure proceedings after approving a short sale offer in order to allow the sale to take place. If your lender doesn’t postpone foreclosure proceedings, the sale may go through anyway if the foreclosure process takes longer to complete than the short sale.
How does a short sale of a house work?
Lenders approve the sale of the property: The lenders will review the buyer’s offer and decide if they will approve the sale. Once approved by the lenders, the short sale can close as soon as the buyer can get their loan approved, funded and closed.