Nobody likes the idea of having to perform a short sale but in some situations, like the current one with my clients, a divorce is forcing a short sale. They currently owe more on the home that it is worth and they need to alleviate the stress and pressure of making a mortgage payment in order to liquidate funds and go their separate ways. After meeting with this couple we determined that a short sale was really the best option for them. We approached the bank with the option of a short sale and discussed the reasons behind it however, because this couple was not behind on their mortgage, it was a little more difficult to push the short sale through.
Often times banks will actually tell homeowners to stop making their mortgage payment in order to push the short sale through but this couple wanted to stay current on their mortgage out of integrity.
Short sales are often determined on a case-by-case basis and surprisingly we were able to get it approved fairly quickly. This is really almost unheard of in the short sale world because trying to communicate with lenders or short sale officers at the banks can be near to impossible. It’s usually the banks that we’re waiting on but in this case, we were actually waiting on the sellers.
Here’s the situation, the wife really didn’t want the divorce; this was the husband’s prompting and trying to get information out of the wife was almost impossible. As a real estate agent it puts me in a really tough situation because I have the lender on one side really wanting to complete the deal and yet sellers or homeowners dragging their feet on the other side. We needed bank statements, pay stubs and some income verification. The husband was all too willing to provide that information but because the wife was dragging her feet the information that the husband provided was now out of date. This has been going around for some time so it’s making it very difficult to complete the short sale proceedings. This also means that someone will continue to pay the mortgage when they may not have to.
All of this to say communication is really key and because it’s so difficult to get the communication from the lender, when I was able to get an approval as long as paperwork is provided, I wasted no time in trying to get this information from my sellers.
Short sales are not a fun proceedings and they can be very long and drawn out but the key is communication and quick acting. Buyers, sellers and lenders all need to have communication and get the paperwork and documents together when asked and needed. This delay in the proper paperwork could cost them the ability to continue with the short sale and may actually cost them the opportunity to get the home sold and divided.
For more information on short sales, documents needed and how to proceed with a short sale option, contact my office today.