The answer to this question depends on your situation, but there have been several occasions where I have had to tell a Connecticut homeowner that I can not help them complete a short sale in Connecticut. Here are a few basic guidelines for when a short sale is less likely to be approved.
- There are judgement liens on the property, from credit cards, medical bills etc. Most lenders will not allow any funds towards these liens, so unless you have the cash to clear them or the buyer is willing to clear them, your short sale is likely to be declined.
- You are seriously delinquent on your HOA dues. The HOA has a 6 month priority over your lender. If this bill has spiraled out of control, the lender is not likely to approve all of the delinquent HOA fees as a closing cost for the short sale, even though they will pay the lien to prevent the HOA from foreclosing....eventually.
- There are income tax liens on the property. The problem here is not the lien itself, but rather the processing time to get the IRS to release the lien. This often takes 45-60 days after the sale is approved by your lender. Most lenders will want the deal to be closed within 30 days from approval.
- You are deep into the foreclosure process and the lender has already gotten a judgement against you. There may not be enough time to successfully complete the short sale.
In closing, there are several different situations which could prevent you from successfully completing a short sale. While the instances named above make it much more difficult, it still may be possible for us to successfully complete a short sale. Each situation needs to be evaluated on a case by case basis. For a free private short sale consultation, contact me.
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Featured in Connecticut Magazine's March 2011 and March 2012 issues as a top real estate agent in overall satisfaction. Contact me for more information about attempting a short sale in Connecticut.
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