Most lenders will NOT accept a short sale unless the borrower is delinquent. If you are only one payment behind and call your lender you will be speaking to the customer service department or the collection department. Short sales are handled by the loss mitigation department.
Most lenders won’t even discuss a short sale until you approach them with a contract in hand from your buyer. They tend to “put you off” and leave you in the dark.
“It seems like the only way to get their attention is to stop making my monthly mortgage payments,” is what a recent client said to me.
When you are a couple of months behind in payments you will have the lender calling you. At that time, you have their undivided attention.
As a REALTOR I cannot suggest that you stop making your mortgage payments. However, that is exactly what many people do to get their lenders attention.
I have heard of some lenders considering a short sale even if the borrower is current with their payments. If the borrower can demonstrate a true hardship and show the inability to make future payments, some lenders are open to negotiation.
The best way to find out the position of your lender is to list your home with short sale expert and authorize them to speak with your lender. They know how to get an answer.
(Copyright © 2007 By Dan Forbes, All Rights Reserved.)
