Apparently lenders are changing how they are reporting short sales to the credit bureaus. Even though I am in "believe it when I see it" mode with this, it still provides some perspective on the mindset of mortgage holders when it comes to short sales. The article tells me that mortgage holders and loan servicers are realizing the true benefits of a short sale compared to foreclosure. Some of the points in the article below are generalized and not entirely true across the board, but it does show that there are now even more reasons for distressed borrowers to pursue a short sale.
Q. Can I do a short sale even if I am current on my payments and can afford the payments? (If so, can you refer me to one of your Harris Real Estate University ASD agents?)
A. The quick answer is Yes (and yes).
Can you short sale your home even if you are not late on your mortgage and may be able to make the payments. In the industry that is called a ‘strategic short sale‘
A short sale happens just like any other home sale. A Realtor lists the home, an offer is received, you (the seller) decide if you want to accept/ reject or counter the offer. Once terms are finalized the home is pending/ in contract just like a normal sale. You and the buyer sign the contract. YOU DON’T NEED PRIOR APPROVAL FROM YOUR LENDER TO DO A SHORT SALE.
A short sale will require the additional step of lender approval. Working with a HREU ASD gives you the edge when getting your short sale approved and accepted by your lender.
Note: Please be clear. A short sale may not be the best option for you. You need to seek advice from your Harris Real Estate University ASD, your Accountant and/ or attorney.
A vast majority of the time a short sale IS the overwhelmingly best solution for underwater owners.
Click on the link below to read the full article.