(Part 3 of 3) Will my be able to be sold on a foreclosure short sale by an agent or expert successfully?

Short sale success factor # 7 – fraud – Did you commit fraud in any way previously? Did you lie and/or exaggerate in any way on your loan application in any way? Did you default on your loan in the first six months?

If you answered yes to any of these you either committed fraud or in the case of the early default you will be flagged in your lenders database for possible fraud. Fraud is a big deal and it effects your ability to do a short sale. If you as the seller committed fraud and you admit to it I will not be willing to work with you. I simply don’t want to be connected to a deal where my client has willfully committed fraud. I have had short sales denied by lenders in because they wanted to have all options open to pursuing the homeowner for fraud. In addition I don’t want to be part of the problem.

However if the seller was the victim of predatory lending and for mortgage fraud than that changes things. Instead of being a negative factor for short sale success it has the possibility of being a positive factor for successful short sale completion. This is especially true if you as a seller are willing to leverage this factor by suing your lender. Any law suit will actually increase your lender’s motivation to work with you to avoid an expense and bad publicity.

Short sale success factor # 8 – Market history - How long has your property been listed? How much was it listed for? Was the property listed with an agent at all before receiving an offer?

An important part of short sale success is fitting your lenders guidelines. Many lenders require a property to be marked for a certain amount of time before they will entertain a short sale. Most banks want to know that a property was at least listed with a realtor. HUD will not even allow a short sale unless a property has been listed with a realtor first. The fact that a property has been listed verifies with a lender that a professional has actually exposed your home to the widest part of the market and helps to ensure the lender that they are receiving a short sale fair offer.

Andy Morris is a Short Sale Specialist in North Eastern Ohio and Greater ClevelandPhone / fax: 440-427-0123 email: andy@iAndyMorris.com
http://mortgagerx.org/- My personal real estate practice.
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