Situations that will complicate your short sale

Single mortgage short sales for folks with significant hardships are the simplest short sales to close.  But more often than not, short sales come with complicating factors that will make it more difficult to get your short sale closed.

The most common complications to your short sale are:

• Second mortgages. These are very common, but present another party that needs to approve you short sale.  Second mortgages can make your short sale more complex.
• PMI. Private Mortgage Insurance companies are highly likely to complicate your short sale. Your MI company will be covering any loss to your lender, and will also have to approve your short sale. MI companies tend to be more demanding than second mortgages.
• Judgment liens.  Every cloud on title needs to be resolved in order for clean title to pass to the buyer. Collectors for credit card companies can be very nasty to deal with and are generally very demanding. Be prepared to have to fork over cash to resolve some of these judgment liens. If you’re facing severe debt problems, it’s better to take action before your collectors do.
• Lack of documentation. Haven’t filed tax returns for two years? This will be a problem. Your short selling lender will want full financial documentation in order to process your short sale application.
• Unheated, unpowered home. This makes your home almost impossible to sell. Most buyers won’t pick up utilities in their name or pay your back due fees in order to have a functional home for inspections and approval. Take measures to keep your protected and sellable before moving out.
• Uncooperative title holders/mortgagors. This would be the ex who is on title with you but has gone MIA or Mom who went on the mortgage with you to help you qualify. Anyone on title or mortgage will have to get on board with your efforts to short sell, or it won’t happen.
• Having assets/good credit. The better off you are financially, the harder your short sale will be. You don’t have to be destitute to get a short sale approved, but the more you have -  the higher the odds that you will be required to contribute to your short sale.
• Being current on your payments. While most investors do not have a requirement that you be in default to qualify for your short sale, current borrowers can expect more scrutiny of their financials and have a higher likelihood of being asked for a cash contribution.

GET THE RIGHT HELP! You’ll have the best odds of getting through your short sale successfully and with the least damage by having the right professionals represent you. Choose your short sale agent carefully.