|
I am a licensed New Jersey Real Estate Broker and the house I currently live in I bought as a short sale. To answer your first question yes you are at square one. Short sales are a LONG process and the reply may be equally long.
First thing you must realize is the bank has lending laws and owners right to contend with. I am not going to go into the owners rights but suffice it to say that in it's self is a long process.
The process generally goes like this.
1. An earnest effort to sell the property at fair market value must be made. Each lender will have its own time frame to satisfy this requirement but a six month listing is the shortest I have ever seen.
2. Generally if a borrower is not behind in payments a lender will not even look at a short sale offer.
3. if the buyer accepts your offer the lender must approve the offer. This can take some time and may need multiple approvals. If a lender does accept the offer usually they will require a closing within 30 days of approval with out any contingencies. If you go past the deadline the acceptance will be void and you start over. If you get lucky and have a good credit counselor at the lender you may get one extension of a week or so before the approval cancels. So make sure all your inspections, mortgage approvals, etc. are all in order.
4. If the loan sells you start over.
5. The difference between the loan balance and the sales price is considered income to the seller and they will receive a 1099.
The reason it is so strict is one. The bank is obviously losing money on the short sale and wants to get every penny they can and two in every case I have seen the borrower is behind so the bank has foreclosure proceedings they must follow. If those proceedings are not followed they may be required to start over causing the foreclosure process to be prolonged.
That's the abridged version.
|