There are many questions that arise about short sales for those unfamiliar with them.
Q. How long will it take for the process of a short sale?
A. 45 to 60 days,although, we have found that some of the lenders are so busy that it takes longer.
Q. Will the seller’s credit rating be harmed in a short sale?
A. Probably. The comment in the credit report is usually something like “settled for less than originally owed.”
Q. What if I cannot reach anyone at the loss mitigation office?
A. Just keep calling, and calling, until you do.
Q. Do I have to show “subject to lender’s approval of short sale” in my listing and contract?
Q. Does the 2nd Mortgage Holder always take a bigger hit on their take from the payout from the short sale?
A. Yes, the 2nd lien holder always is in second position, so they will have to take a reduction in lieu of being wiped out in a foreclosure.
Q. Is there a difference in how a primary residence is handled as compared to an investment property in a short sale?
A. This varies from lender to lender, and from situation to situation.