hey guys. for you investors who are actively doing deals…are you noticing that the requirement for a homeonwer to be delinquent on payments still exists?
i notice some shortsales on the mls which do not have lis pendens filed. i’m curious if the lenders are willing to entertain shortsales given they are active with payments.
If a property owner misses one payment or knows they will miss the payment and has no current chance of making future payments or catching up a delinquency in a modification, they can list there property for short sale.
The realtor either waits for a qualified buyer to make an offer or gets an investor like us to make a low ball offer to get the ball rolling.
By the time something is submitted and potentually approved the owner will have been served there “Notice of Default”.
It depends on the lender. I just completed a short sale here with a large bank and the seller was not behind at all on payments. There was another hardship however (he had to move out of state for work)
Bought the house in 07 for $265K, still owed $244K. Short sale approved for $132K. Was never late let alone behind on any payments.