Usually a short sale contract is contingent on the sellers lender approval, no approval should mean contingency can't be removed and sale can't proceed. Ask your agent or their broker to review the contract with you.

I have heard this from another B of A borrower, they wouldn't talk to him until he was 3 months delinquent, much less approve the short sale. The lender is NOT required to approve a short sale, like all of us they want a return on their investment not a loss. If you have a hardship they may consider it (such as loss of job, divorce, illness)

Advise you talk to a Real Estate Attorney and your financial advisors to come up with a plan that fits your situation.


Teri Andrews-Murch, Realtor®, SRES®
DRE CA Lic # 01734030
Lyon Real Estate
1900 Grass Valley Highway, Suite 100
Auburn, Ca, 95603
Direct Ph: 530-798-0215

Try to motivate bank, if I will not sell my home (prove your hardship) It will be delinquent. Tell them I am selling my home to avoid delinquency. If bank is not moving forward then its up to you.

I'm not quite understanding what you've done. Are you saying you signed a listng agreement to short sale your property and now have found out that the bank says you don't qualify to sell your home in a short sale?

The bank (B of A) cannot deny your short sale because you are not delinquent in your payments. The bank may deny you of a loan modification.

It is hard for anyone on this message board to supply you with the appropriate and accurate info because there is so much detail that is unknown that would need to be asked.

Sorry, need more details.

If the contract was contingent upon the short sale approval and the bank rejects the approval because they seem to think you don't have a hardship, you don't have to do anything to create a hardship that would qualify.

My question is, if you are not behind, whether you might qualify for a loan modification. There's something called "imminent default" which means that you are not yet behind, but may not be able to keep up much longer to stay current. I am a bit surprised that B of A denied the short sale because you are not behind because most of the time that's not really a requirement anymore, but B of A has it's own rules and I suspect that they just took the easy way out for now. Anyway, to qualify for a loan modification under the Making Homes Affordable Plan (HAMP) aka "Obama Plan", you don't have to be behind to qualify for a loan modification. You can go to http://www.freddiemac.com/avoidforeclosure to get more information about the loan modification program. You still need to show a hardship, but the requirements for a hardship for a loan modification are not the same as for a short sale.

Best of luck to you,
Ute Ferdig
Broker-Owner
DRE 01326917
Ferdig Real Estate Solutions
916-751-1267

If you signed a standard contract that includes a short sale addendum, you can be released from the contract if the bank will not agree to the short sale or makes demands with which you do not agree.