Sherman Oaks Short Sale Myths
One of my close friends is trying to get a loan modification. His property was purchased at the height of the bubble and consequently is worth less that is owed. The note on the property is adjustable, and my friend would like to get the loan into a fixed product only... that's it... no debt forgiveness at all.
He also pays every bill on time and has never been late on the mortgage... and the lender won't help him.
He has never asked for a short sale.
There is a common perception that unless a borrower is late on their mortgage the bank won't deal with them. In the case of a loan modification that may be true... not so with a short sale.
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While it is true that some banks will not speak about a short sale or move the process forward until there are late payments, it is also true that there are banks that would be grateful to a borrower for being upfront and handling the situation with this kind of sincerity.
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If there is a true hardship like medical bills, job transfer, job loss, sickness or some other reason that the financial disposition of the borrower will no longer afford them the home, then the lender understands that it will be worse for them to wait until more payments are behind. The decision a lender makes to approve a short sale is purely financial... they see that there is a legitimate hardship and that it is likely that they will not be repaid on the mortgage, and they know that to get out of the loan as quickly as possible is the wisest course.
Many lenders are grateful that you are being proactive - here's hoping that dispels another of the Sherman Oaks Short Sale Myths.
Peace to you and yours,