As a homeowner, it’s important for you to know all your options for many different reasons. And, one of those reasons is to be able to make the right decision that will work out best for your situation.
The only caveat to that is, doesn’t it sometimes feel like there are things that people may be holding back from you? Information that people keep to themselves. Well, if you have ever felt like that, then you should read this post until the end. Because we’re going to reveal information that you truly need to know.
Homeowners Selling Their Property.
The truth is, even though we are one of the top short sale companies in the nation, not all sellers qualify for a short sale. See, if you are not in a TRUE financial hardship, it will be hard to qualify for a short sale with your lender.
However, you are NOT required any longer to be delinquent on your mortgages in order to submit a short sale with your lender. LMS Management has worked with its clients in order to get back at closing up to $30,000 from the lender/bank for a seller’s incentive programs.
What You Need To Know About Lenders
Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have a pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies.
A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal or Broker Price Opinion(BPO). When partnering with an industry leader like LMS Management, you will be working with a team that knows and understands all the individual banks loss mitigation practices which puts your likelihood of approval higher than ever before.
Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the 2009 foreclosure crisis, they are now more willing to accept short sales than ever before.
This presents an opportunity for “under-water” borrowers who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure as a result.
How Approvals Work
Multiple levels of approvals and conditions are very common with short sales. Junior lien-holders – such as second mortgages, HELOC lenders, and HOA (special assessment liens) – may need to approve the short sale.
That makes one of the most frequent objectors to short sales include tax lien holders (income, estate or corporate franchise tax – as opposed to real property taxes, which have priority even when unrecorded) and mechanic’s lien holders. It’s also possible for junior lien holders to prevent the short sale.
If the lender required mortgage insurance on the loan, the insurer will likely also be party to negotiations as they may be asked to pay out a claim to offset the lender’s loss in the short sale.
The wide array of parties, parameters and processes involved in a short sale makes it a relatively complex and highly specialized type of real estate transaction. Unsurprisingly, short sale deals have a high failure rate and often do not close in time to prevent foreclosure when they are not handled by a knowledgeable and experienced professional.
Which is why we’ve created a process that helps us get our short sales approved fast. So, make no mistake about it. Teaming with LMS Management there will be no question, that you are getting the best experience in the industry to help you out of your situation.