Short Sale / Insurable Loss

Quick question:

If someone is applying for a short sale, and some of the damage to the house is because of the hurricane and therefore insurable, (around $4K that could not afford to be paid and damage was never repaired) why would that hold up the bank’s decision, and is it likely to cause a refusal to grant a short sale? Thanks for any info.


nah, that spur the bank in accepting your offer since you can show that if they took the house back, they would need to fix it up anyways before they can sell it as an reo.

That would make sense. Thanks for the input.

The bank keeps dangling a carrot right now. The LM officer expected an approval (her words) on Wednesday, but the investor and I have heard nothing since. :frowning: Hopefully we’ll get word back today. Can’t stand another weekend of not knowing. The fact that it’s getting closer to the end of the year might give the bank more incentive to offload a bad loan, so fingers crossed.


I must agree that the worse the property looks, the better
the discount you will receive. Use the repairs to get the
best discount you can. :slight_smile: