September 1, 2017

jumbo loan short sales

Home Sale Challenge:

After a business loss and years of unsuccessful attempts at modifying their loan with SLS mortgage, our Essex, CT homeowners realized their only remaining option was a short sale to get out of their underwater mortgage.

SLS  (Specialized Loan Servicing LLC) was the mortgage servicer on the first mortgage on the property (a jumbo loan) and there was a large second mortgage with PNC, along with a lien from a debt collector, for a total owed exceeding $700,000. Multiple lien situations can be complex to resolve so we expected a hard road ahead. Complicating matters was the property which was highly unique, and would appeal to a very small buyer pool. 

Reid Real Estate Group Approach:

It took over 5 months and $125,000 of price reductions to secure a buyer for our unique home and we were finally able to begin processing the short sale with SLS. As expected, getting three lien holders to all come to terms was painstaking and difficult! Negotiating with a collection agency can be especially trying. A total of 8 months passed until we were able to negotiate satisfactory approvals on all. 


A month after the short sale approval, this jumbo mortgage short sale closed, with the sellers walking away with over $400,000 of forgiven mortgage debt, and with a relocation check for $10,000 to boot!

Short sales with jumbo loans can be specifically unpredictable. Because these portfolio notes do not conform, they have no set servicing standards and investors can throw out unexpected demands. When attempting to short a jumbo loan, make sure to choose a highly experienced short sale realtor.

"When it comes to short sales, Minna is an expert. We had no idea that finding a buyer would be the "easy" part. Getting the bank's approval for the sale was a challenge. Our bank constantly made mistakes, even denying us at one point. The whole process was routine for Minna and she reassured us that we would work through the hiccups and eventually get approved. And she was right. What a relief! We hired Minna based on all of the positive feedback we found online and are glad we did. She's smart, responsive, knowledgeable and shows an overall level of professionalism that puts her in a different league than the rest. She regularly exceeded our expectations and we would recommend her to anyone looking to sell their home." ~D.S.

Last Updated on November 25, 2022 by Minna Reid

About the author 

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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