From the Good News Department

From the Good News Department . . . .

Anyone who has been involved in a short sale knows how frustrating and stressful the entire situation can be on all involved.  Obviously the most stress falls on the shoulders of the seller.  But, the frustration part usually falls in the buyer's lap.   Reason being, to date short sales can take anywhere from six weeks to six months for lender approval. 

A lot depends on what stage the proposed "short sale" sale is in.  For instance, if a responsible homeowner has been in consistent contact with the lender and a short sale package has been completed, the house may be an "approved" short sale and has a better chance of closing sooner.  On the flip side, and where most short sales wallow, is the "short sale - subject to lender approval" category.  

Depending on the lender, these unapproved short sales can last months and months.  Oftentimes they end up falling out of contract for a couple different reasons.  Either the homeowner or Realtor assisting has little to no idea about what "net number" the lender will be willing to accept and so the property is marketed well below the realistic sales price.  Or, the approval process takes so long that prospective buyers who may have a deadline decide to withdraw their offer and look elsewhere. 

Want to know exactly what a Short Sale is? 

You are waiting for the good news, right?  The government recently announced improved short sale guidelines.   Here is the Information on the New Short Sale Guidelines taken directly from the press release through the National Association of Realtors. 

This is encouraging news and should help a number of families avoid foreclosure which is the biggest detriment to future credit implications.