Will lenders consider a short sale when the seller isn't in default?

I have two separate customers who are way upside down in their mortgages, but they're current on their payments and can likely stay that way.  If we were to begin offers for sale to the lenders (one is Chase and the other is BOA, and both are single-lien situations) would they consider our offer?

 

 

Alex Krumm

Re/Max Alliance Group

Broker Associate

GRI, Certified Distressed Property Expert

Winner, Five Star® Best In Customer Satisfaction: 2010, 2011

 

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Replies to This Discussion

Permalink Reply by Jeff Payne on July 4, 2011 at 6:48am
It depends. I have done several that were current
Permalink Reply by Kimberley Kelly on July 4, 2011 at 7:23am

I have heard this, I have read it, I have yet to experience it.  The most recent is a new Listing I took two weeks ago in La Quinta.  The Owners are not delinquent yet.  B of A, one Loan, Primary Res..slam dunk.  They wanted to stay current and see if they could do a Short Sale.  I advised them (about a month before they listed with me), to call their Lender (current at that point) and tell them.  See what they say...they did.  Called me back and reported complete disinterest on the part of the customer care rep.

 

Now it's a month later, they are one month delinquent.  They called again and Bingo!  This time the Customer Care Rep took them seriously, advised them as to the program and steps they needed to take. 

 

I simply wanted to test the waters because, like Harry, I am in a hard hit area and if this were to be true..I would love it.  However, we cannot tell our clients to skip payments to short sale, so I find it works to refer them directly to their Lenders and find out for themselves.  They are NOT receptive until the Sellers are delinquent and they can SEE for themselves that the Seller is willing to stop payments.  Sad, but true..hope it changes, but have no faith..

Permalink Reply by Bryant Tutas on July 4, 2011 at 8:09am
Yes they will. I just closed one last week with Suntrust where the seller was current on payments. I also recently received a approvals on a Nationstar and a Wells Fargo where the sellers are current.
Permalink Reply by Alex Krumm on July 4, 2011 at 8:59am
thanks.  btw, I'm a longtime reader of this blog and a first-time poster - I love the forum.
Permalink Reply by David Dee on July 4, 2011 at 9:05am
It will depend on the situation for each scenario. I was able to close one last year with this situation. Good luck!
Permalink Reply by Beverly Cibulsky on July 6, 2011 at 10:46am
BOA,,, should work with it! The other one! Let's just say, I dont even want to mention the name< I will have nightmares tonight!
Permalink Reply by Bryant Tutas on July 9, 2011 at 11:56pm
I'm going to blast this out in the newsletter today., Lets' see what our members have tio say
Permalink Reply by Valerie Pressley on July 10, 2011 at 12:32am
I've done a short sale with BOA, two seconds with Wells Fargo, where the sellers were not behind and we got an approval.  If it's an FHA loan, the seller must be 30 days behind before they will approve the short sale.  Ask me how I know.
Permalink Reply by Donna Ryan on July 10, 2011 at 12:49am
Yes, you can get an approval when the Seller is current.  I recently received an approval from both the Sr. & Jr. Lien Holder's. (both were WF).  In this particular situation, based on financials, the Sr. Lien Holder required seller to contribute toward closing.  This figure was negotiated down and everyone is happy.
Permalink Reply by David Altuzarra on July 10, 2011 at 1:04am
They will do a short sale if they are current. I've done several. It really depends on the investor, some won't but most will.
Permalink Reply by John P Cadman on July 10, 2011 at 1:37am
I have a Chase first and Chase second short sale with a seller that is current.  They gave us a sales price they would consider that was higher than the buyer was offering, so we re-marketed and found a buyer willing to offer what Chase indicated they would accept only to have the short sale denied.   The excuse was "hardship".  They believed the seller was not in an eminent default situation.  The seller has been digging into savings to make the payments and decided to stop doing that now that he was denied.  It has been a month since the first missed payment.  We will re-submit and probably have to get a new buyer in a month or two when Chase realizes that people will not destroy their financial futures for a roof today.
Permalink Reply by Jim Stewart on July 10, 2011 at 2:00am
To those of you that are getting these done with the seller being current: is the deficiency being forgiven or is the lender retaining rights to pursue deficiency?

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