February 2nd, 2010 12:49 PM by Rob Robbins
Pre-foreclosures or Short Sales are becoming the future for people with hard times, doctor bills, job loss, reduced income and ARM loans coming due. The Short Sale is a far better way for the seller verses foreclosure. In a Short Sale the mortgage holder must approve the sale. The disadvantage of Short Sales have been for the buyers. It has taken up to 120 days for mortgage companies to make a decision whether to accept it or not. The buyer does not know if they have the property purchased until it is approved. That will soon be in the past.
Congress is applying new rules for mortgage companies to follow starting in April. I will be taking training on the new changes in February. The most significant change so far is the mortgage company will have to offer financing alternatives to the owner. When these options do not work then they must consider a Short Sale Purchase contract and make a decision in 10 working days.
I will not go into more detail until I have the complete training.
This will give buyers much more confidence in making offers on Short Sale properties which in turn will sell the properties quicker.
It is important that you use a Realtor that has experience with Short Sales so your transaction will go as smoothly as possible.