Over the last few months I have heard some friends and homeowners want to do a short sale on their home because their new neighbors bought the house down the street for half the price of their home. Sorry to say, a lender will not get their investor approval on a loan modification or short sale because the borrower– you, as a homeowner– is upset the market values are decreasing. The values of homes do not affect a owner’s ability to pay the loan, unless they experience a hardship and heading to foreclosure. If they apply for a short sale, the lender wants to get a good picture as to why they cannot pay with copies of taxes, bank statements, hardship statement, pay stubs, financial statement with all assets, and other documents. When a seller has the assets to pay, the lender will take what they can.
If you want to leave your property, try waiting for the market to recover, bring cash at closing for the pay off, or in the worst case scenario-foreclose. Sometimes it is always better to try to short sale than to just give up at all. With the new Federal Trade Commission MARS law you can:
- You may stop doing business with us at any time.
- You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicers).
- If you reject the offer, you will not have to pay us for our services.
- Also Intero Real Estate Services is not associated with the government, and our service is not approved by the government or your lender. Plus even if you accept this offer and use our service, your lender may not agree to change your loan.