- Loan Balance – Not all lenders may be willing to “reduce” the balance of the loan (the difference between the short sale price and the amount owed on the mortgage), especially if there are other financial assets that could be used to pay off this difference. Not all lenders will accept short sales or discounted payoffs, especially if there is more financial incentive to foreclose. (Free consultation to analyze your Personal circumstances)
- Time and More Time – The short sale process can be lengthy and may take much longer than you expect. Many lenders are overwhelmed and lack staff resources to work quickly through the review and approval process for a short sale. Typically, short sales take 3 to 5 months but can take longer in some cases.
- Buyer Frustration – Buyers may not stay the course through the lengthy review and approval process by the lender. Buyers may not be prepared for a lengthy waiting period.
- Other Loans or Lien Holders – If you have more than one loan for the property, such as a second mortgage, or if you have a special assessment lien such as an HOA, the other lien holders may also have to agree to the terms of the short sale agreement. In some cases, the holder of a second lien may ask that you sign a promissory note or make partial or complete payoff. (Call me to review your current liens)
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