By Donna Moyer
Q: I really need your help! I am so frustrated I don’t know where to turn. I just got bad news today about the house my husband and I are trying to buy. It is a short sale and we have been waiting three months for an answer. Apparently the seller’s mortgage company denied the short sale because the seller doesn’t qualify. How can that happen? I am so upset, that was my dream home!
A: I am so sorry to hear this…I know how devastating news like this can be, especially considering you have been waiting for three months. Unfortunately this is a trend I am seeing too often! One of the most important steps of a short sale is the qualification of the seller by their mortgage company. Due to pure volume, many mortgage companies are not reviewing the seller financial package until a contract is received. In most cases, the seller must be able to show a financial hardship such as a loss of employment (or job transfer out of the area), divorce or a debilitating health condition. Just because someone is upside down (owes more on their mortgage than the house is worth) and would like to move, does not make it a hardship. It is difficult for me to know the exact reason for the denial, there really could be so many. There were changes to the short sale process that happened last November for Fannie Mae and Freddie Mac loans. This should help owners, buyers and agents navigate through this process with fewer headaches. Please feel free to contact me directly at donnamoyer@lizmoore.com if you have any other questions.
It is important to work with a REALTOR who is familiar with, and has expertise in, the short sale process. There are many things that can be done to protect your interest. If you are interested in further exploring short sales, please let us know and we'd be happy to connect you with an agent who can help you.
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