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Sandi, Home Buyer in California

When should I contact my lender to talk about a short sale? Does the homeowner talk with the lender or my?

Asked by Sandi, California Tue Apr 1, 2008

real estate agent about a short sale?

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Sandi, If you're the borrower who NEEDS the "Short-Sale" then what Alan said below is excellent advice. The only thing I could add is if you have a huge amount between the agreed upon "Sales" price the lender approves and what is owed, the lender may come back to you at the close and blindside you with an unsecured Promisory note for a sum they feel makes them whole on the deal. We have had numerous lenders state in a very generic letter the offer was acceptable to them but when the Seller gets to closing there is a note for $50,000 owed by YOU to the lender who is doing the short-sale. The note obviously cannot be secured on the subject property so you either take it or go to sale!! Very hard to pin them down on this--you wont' know until the fat escrow lady sings!! My web site below goes into more detail about "short-sales" Good luck--keep talking to your lender!!
0 votes Thank Flag Link Tue Apr 1, 2008
If you are the seller and in danger of losing your home to forclosure, and you desire to work out a short sale with your lender, you should contact them right away. If you want your listing agent to sit in on those conversations, you can allow that to happen.
Web Reference: http://www.queencitygal.com
0 votes Thank Flag Link Tue Apr 1, 2008
Sandi,
You both communicate with the lender. The agent will need to furnish the lender with the contract and all the information on the home. Of course they will contact you if they need any personal information. The approval process is based on your credit and the appraisal of the home. So they will talk to everyone.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Tue Apr 1, 2008
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