Sellers aren’t able to obtain a short sale based solely on the fact that they’ve lost equity in their home. Lenders will look at the complete picture, the total hardship, and then make a decision. From a lender’s eye, things such as divorce, job loss, illness, bankruptcy, natural disasters or death of a spouse may be part of the criteria.
It’s not to say that lenders don’t look at a loss of equity. They do consider things like whether or not the mortgage is near or in default, if the home’s value has decreased, and if the seller has other assets.
There are some things that banks will generally reject: a bad purchase by the owner, an owner who’s not happy with the location of the house, a dissatisfaction with the decline in value of the home, or an owner who has already purchased another home.
Short sales do sell. They take time, but if you have the time and the patience, there are some great finds out there, as one of our buyers recently discovered. The acre, Pinecrest home was listed as a short sale for $1,800,000. Our buyers purchased the home for $950,000. With the back and forth with all parties involved, it took 8 months until the deal closed. A long time indeed, but definitely worth the wait. Today, the home is near the end of renovations and our buyers are thrilled.
If we can help you with selling or buying, send us a note. We would love to help you find an amazing home or help you sell your home, whether a short sale or not. We are here to make the process move along smoothly, so call today!