If the property has more than one loan on it or a second lienholder, the process can get very sticky very quickly. Sellers have to submit documentation that they qualify for a short-sale.
However, banks make a habit of losing the paperwork. Often times, the bank does not communicate with the listing agent or the prospective buyer and the sale is left in limbo.
Listing agents are not excluded from the obstructionist tactics, either. Many times properties are listed as “short-sale approved” when no such condition exists.
Banks deal with short-sale properties on an individual basis only after an offer has been made. The prospective buyer needs to have patience when buying short-sale homes.
Buyers also need to question the mortgage holder, bank and real estate agent to make sure everything is as it should be.
The banks are balking at selling short-sales because they are hoping for a better offer and higher payment.
In addition, they are currently lobbying in order to be immune from Sarbanes / Oxley and holding back clearance (stalling economic recovery) is a tactic used to achieve their end.
They are also dealing with the backlog of foreclosures in the courts after the robo signing scandal with MERS. Do you think it’s complicated?
Appraisal Source is a New York based residential real estate appraisal firm. They can be of service to you if you need a home appraisal in Long Island or in New York City.
Here’s the original article…Short on Patience? Don’t Buy a Short Sale