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The bank isn't the owner of record, so they can't make decisions about what happens with the property. What you're asking is just like your bank hiring an agent to sell your house and cutting you out of the process. How would you feel about that? Some banks will preapprove short sales, but many are not there yet. Until they're all on the same page, we have to keep on doing what we've been doing.
And this isn't actually like your dining room table analogy. The bank and the homeowner are not a team. They aren't looking out for each others best interest...it's strictly a financial interest for the bank. It's a very one-sided "relationship". I sincerely hope your relationship with your wife is far better than that of a bank and a homeowner
I'll bet the relationship between the bank and the homeowner was just fine on the day the mortgage was taken out.
Yes, there is a difference between selling my dining room table w/o consulting my wife.
However, a seller can not sell his mortgaged house until the bank signs off.
Do you know what the mortgage balance is on a short sale?
I mean say if you have 2 identical homes, 2 identical short sale price listings
Both listed at say 400K
home A has a 450K mortgage balance (shorting the bank $50K plus fees)
vs.
home B has a 500K mortgage (shorting the bank 100K plus fees).
Assuming both homes are mortgaged with same bank, wouldn't home A get approved faster than home B?
It depends on the available information in your area. Here, my MLS gives me access to the mortgage amount taken at time of sale, but not refinances. I'd have to search the county recorder's database to find any other liens recorded on the property. Then I'd have to guesstimate the remaining balances, so it may not be very accurate. I'd also ask the listing agent, but they may or may not tell me and would depend if the seller gave them permission to answer.
If one has a lower balance than the other, it may get faster approval, but will also depend on other variables. Is there PMI to deal with? Is there a 2nd lien holder? It's possible the one with higher amount may get faster approval if there are fewer competing interests.
The bank isn't the owner of record, so they can't make decisions about what happens with the property. What you're asking is just like your bank hiring an agent to sell your house and cutting you out of the process. How would you feel about that? Some banks will preapprove short sales, but many are not there yet. Until they're all on the same page, we have to keep on doing what we've been doing.
And this isn't actually like your dining room table analogy. The bank and the homeowner are not a team. They aren't looking out for each others best interest...it's strictly a financial interest for the bank. It's a very one-sided "relationship". I sincerely hope your relationship with your wife is far better than that of a bank and a homeowner
Mostly this is true, however the bank CAN make decisions about what happens with the property. They have to approve the agreed upon sales price and terms. Then, they have to act... That's been a huge problem, Ive been working on a short sale for a buyer client for over a year!! The second lein holder holds things up for more money not realizing that if it forecloses they get nothing. On the other point, it does seem one sided. But the flip side is it gives the mortgage holder an opportunity to not have a foreclosure on their credit, only the late pmts...that's pretty big.
Do you know what the mortgage balance is on a short sale?
Assuming both homes are mortgaged with same bank, wouldn't home A get approved faster than home B?
1- I always do. I can only speak for myself.
2-No, they have to go through the same process so A will not be approved any faster than B. As a matter of fact, if it's a better Realtor/package sent in on House B, and a more capable negotiator, House B could indeed be approved faster than House A even if it makes less sense.
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