The one consistent rule in short sales is that the rules will always change!
I have noticed a new trend with all Fannie Mae
backed short sales in the last year or so. Once reaching approval stage, 100% of the time Fannie Mae is requesting a cash contribution or large promissory note from all NON-OWNER OCCUPANT short sellers. Lenders have never been as kind to these owners as they consider them “investors”. While asking for cash or notes is not new
, Fannie Mae is now religiously requesting the sellers to take on payments for the entire amount of the deficiency
THE GOOD NEWS?
I have found that 100% of the time thus far, these requests are highly negotiable. With a few choice responses, we routinely see these requests go from tens of thousands of dollars (or even over $100,000 in some cases), to a few thousand, or even into the hundreds, and once in a blue moon it disappears altogether (although this is rare lately).
You are more likely to be asked for a cash contribution if you:
If considering a short sale, your best bet for success is to speak with a highly experienced short sale specialist in advance of listing your home, to not only set up proper expectations for how your short sale will go, but also to help prepare for any complications in advance.
- Do not occupy the home in question
- Are current with mortgage payments
- Have good credit and/or assets