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Southern Oregon: Will all lenders accept a short sale?

By
Real Estate Agent with Short Sale Specialists

I recently ran into someone who was told that their lender would not allow a short sale.  This seemed very odd to me as they seemed to meet all of the requirements of a short sale.  They had a huge drop in income...their property was way under water...they had a legitimate hardship.

What happened was they were speaking to the debt collection department of their bank.  The debt collector basically lied to the borrowers to try to get them to pay their payment.  Of course it didn't work, but the borrowers let their house foreclose because they were told they couldn't short sale their home.

Home owners need to know that their banks have three seperate departments that handle home owners in default.  Their is a Debt Collection department (or Recoverty Department), their is a Foreclosure Department, and their is the Loss Mitigation department.  The sad thing is...rarely do these departments talk to each other.  The Loss Mitigation department handles short sales.  When your bank calls you...it is usually the Recovery Department...and they will tell you just about anything to get you to make a payment.  They convinced one seller to scrape up $11,000 to pay towards their mortgage to "assist with their loan modification"...and then denied them.  Don't trust what your bank tells you!  Ask a Short Sale Specialist.

The sad thing is they could have short sold their home and saved their credit.  The lender that held their loan had programs that gave borrowers up to $5,000 for short selling their home as well.

Now...it is still uncertain if there are lenders who absolutely refuse to do short sales.  Short Sale Specialists of Southern Oregon can get you straight answers.  You can also get a Free copy of the book "Home Owner's Guide to Real Estate Short Sales" by visiting www.ShortSaleAuthority.net.

MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Good post, however you should change "except" to "accept".

Dec 17, 2010 04:43 PM
Jamie Batte
Short Sale Specialists - Medford, OR
Short Sale Specialist

Thank you.  I was never good at spelling.

Dec 17, 2010 05:02 PM
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Jaime,

This is very valuable information.

Almost no one knows about the three different departments, often in three different states, with no communication between them.

Phil

Dec 17, 2010 05:28 PM
Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

I am stunned. Imagine a bank lying to someone. OK, I'm not stunned AT ALL! They lie like rugs.

And here's a good way to tell if they are lying. Their lips are moving.

Dec 17, 2010 05:35 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Both Jon and I have never heard of a bank lying to their customers.

Dec 17, 2010 05:57 PM