I have been doing short sales for about 3 years, I have seen a lot but I am still learning. I known that banks sometimes might denied a short sale in the following cases:

  • 80/20 they can agree on how much each one is getting, sometimes the 2nd mortgage wants more than what the first mortgage is willing to approve.
  • Contract price is too low or property is so ugly and has to many issues that no one is interested to pay what the bank has approved.
  • Too many liens on the property and bank wants seller to pay for all or some of them and seller doesn't have the money to do it.
  • Strategic short sale, the homeowner is comfortable making payments but because they are upside down they want to sell, but there is no real hardship.

 

This is the new one. Homeowner bough property with FHA loan back in 2007, got married and move out of the house and rented the property from 2008 to 2009. Husband loss his job and they moved back to the house in 2010. She was denied a loan modification, Wells Fargo send her a letter advising her to short sale the house. Then when I sent the concent for the bank to release information to me, they told me that FHA rejected the short sale because she used the house as a rental for a period of time and that she can't even do a deed in leiu.

We learn something new everyday.

Views: 103

Comment

You need to be a member of Short Sale Specialist Network to add comments!

Join Short Sale Specialist Network

Comment by Kelly Christine Magreevy on September 9, 2011 at 8:31am
One thing you didn't mention that I am quickly finding out more info is that the MI denies the short sale. how often has this happened? Which PMI companies are the worst? The best? Thanks for your post. So far, I have been 100% successful with my short sales.
Comment by Joseph C. Alfe on August 11, 2011 at 9:42pm
FHA will do a short sale as long as it was a rental for a max of 18 months.
Comment by Jose A. Rivas (RDCpro,SFR, CDPE) on August 11, 2011 at 8:43am
Marcus I did and the guidelines say that to qualify for a short sale the property was not purchase for rental investment and was not rented for more than 18 months. she had the property rented for more than 18 months
Comment by Marcus Johnson on August 11, 2011 at 8:07am
You might want to check the FHA guidelines in regards to the rejection.  You know how banks lie sometimes

Forum

Ocwen Contacts Short Sale Package

Started by Jan Baron in Rants and Raves. Last reply by Anna Wilk Jan 14, 2016. 5 Replies

Shellpoint Mortgage

Started by Celeste ODea in General Discussion. Last reply by Brett Goldsmith Sep 4, 2015. 3 Replies

Extension Fees & Closing

Started by Colleen J Couse in Rants and Raves. Last reply by Brett Goldsmith Sep 3, 2015. 1 Reply

© 2019   Created by Mike Linkenauger.   Powered by

Badges  |  Report an Issue  |  Terms of Service