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Short Sale Secrets Lenders do not divulge

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By : Sonia Smith    99 or more times read
A homeowner who can no longer comply with his or her monthly payments could find a short sale as an unavoidable option. Although it can affect the credit standing of the borrower, it is not as bad as compared to a foreclosure. However, this process is still a dreaded reality for both a homeowner and the lender.

Although lenders and borrowers are not happy about a short sale to happen in their investment, there are important details that the latter should know. Usually, these facts are kept hidden by lenders to protect their interest in the procedure.

Short sale secrets lenders will not tell you:

  1. Timeline is one delaying technique utilized by banks and lenders to delay a short sale. They have loss mitigation departments that take care of these issues. It needs immense documentations and other type of requirements for the seller to comply. It impairs the seller who in spite of getting a prospective buyer for his or her property, may still be subject to losing the home due to the longer waiting period. This is discreetly done, but is still a definite method of preventing a short sale from happening.

  2. Lenders will not divulge the market value, which they claim as personal like the value of a home listed for short sale. They may consist of expected margin sale for the home, which is equally necessary. The deficiency of this important information usually discourages buyers resulting to postponement of a sale.

  3. In buying a home, there are closing costs, charges and fees needed for the process of acquisition. This is an important data that most lenders will not disclose to borrowers to avoid a short sale. Buyers often find themselves in compromising circumstances that led them to back out of the deal due to its lengthy process of application.

  4. Lenders do not tell you that they perform confidential arrangement with investors without you knowing it. Unfortunately, many agents are still blinded by the real estate business in general. Many only want to believe that their real estate transactions are the only way where lenders can actually move the property. Sales of performing and non-performing notes are accountable for most of the swaps but these are not listed in public records since they are sold at very cheap prices.

Consider that your home is just the icing of the cake. Many lenders are not enthusiastic in seeing or visiting your home than you think. In fact, when you express your desire to short sale your home, most of them are indifferent. The only thing that concerns them is your monthly fees due for them. However, lenders want to make sure that borrowers have an emotional attachment to the property.

Borrowers and lenders have necessary roles in a short sale situation; both are always on guard for means to protect both of their interests. In case lenders will not give out necessary data that you should know regarding a short sale, you can inquire from real estate professionals and consultants to find a resolution to your problem.
Beautiful homes to behold in Surprise Real Estate, amazing bank foreclosed homes in Surprise Foreclosed Real Estate and short sale houses in Short Sale Houses in Surprise.

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