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Sunday, July 10, 2011

A Short Sale without a hardship. Loss Mitigation.

A Short Sale without a hardship. 

It can be done.
I have received short sale approvals from banks when there has NOT been a true hardship.
I have also had clients denied when the banks do not see a true hardship.
Why do some get approved and others get declined?

I have reviewed the ones that did get approved to look for things in common.
Things I have found in common is that all of these approved seller's had stopped making their payments to the banks,these seller's were very serious, they were not going to make any more payments.All were very upside down in value and had made the decision to move on.

This type of short sale is called a strategic Short sale and I have found that seller's have about 50/50 chance of approval in this type of short sale.The banks will have you believe that they will not allow a strategic short sale but that is not the case.The banks have to make a financial decision when reviewing a sellers short sale package.The banks review process is not always based on sellers hardship.

Some banks and or their investors will approve a short sale on a purely financial analysis.
They will take less of a loss with a short sale than going through the foreclosure process.

Its called loss mitigation.

Posted via email from Temecula Short Sale Specialist