Banks have learned that it is far cheaper to do a short sale than to go through a foreclosure action.
so banks are sending letters to borrowers on how to do a short sale encouraging there borrowers to list
there home with a Realtor and that it could be complete in 37 days.
A borrower received a this letter.
The letter started:
If you are experiencing affordability issues with your mortgage payments, you may be eligible for a workout program, known as a "Short Sale".
What is a Short Sale?
A short sale is a workout program that allows a borrower to sell the property, even if the proceeds are less than the loan payoff, due to low property value. If approved, a Short Sale option can help you avoid further collection activity or foreclosure action.
The bank, one of the three giants, gave a detailed explanation of the process, a checklist of items they needed from the seller, a ‘Realtor Short Sale Guide' with instructions on how the realtor should handle the transaction (including special phone numbers to call) and a timetable on exactly how long the approval process would take.
Some of the exact sentences from the three page letter:
A short sale is designed to help people avoid foreclosure.
A short sale can save some of the embarrassment and stress of a foreclosure action.
Upon final approval, a short sale can help homeowners avoid furtner collection activity or foreclosure action, which can result in adverse credit reporting and possible tax liabilities.
Realtors are generally allowed to charge a commission.
Please do not delay, we are eager to assist you.
They claim that the entire process should take no longer than 37 days from notice of offer to full written approval.
This is absolute proof of the changing dynamic in 'short sales'. If you want to sell your home and feel you can not afford it call me and we discuss the a short sale of your home. If you are a buyer this maybe a oppurtunity to buy a home at a fair price
David Medendorp
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