Short sale on a jumbo loan? Here’s what you need to know! A jumbo mortgage is a home loan exceeding conforming loan limits, mainly used to buy high end or luxury property. Conforming loan limits in Connecticut are $417,000 in all counties except Fairfield county – where the conforming loan limit is $601,450. When the balance on the mortgage is greater than the home’s value but you need to sell anyway, a short sale is one possible solution. If you are considering a short sale on your Connecticut jumbo loan- there are several things to keep in mind:
- While conforming loans all generally follow set standardized investor guidelines for short sale processing, none of these rules apply to jumbo loans as these investors are free to make up their own! What that means to the seller in the short sale of a jumbo mortgage is that while we are always able to guide you and give you the most likely outcome of your situation during our first consultations, the terms of approval are not always highly predictable in advance in a jumbo short sale and may likely need to be negotiated throughout the process.
- Conditions of short sale approval including requests for cash contributions or notes are more likely, and there is no guarantee upfront for waivers of deficiency balances in advance. When entering into a short sale with a jumbo mortgage (or any portfolio loan for that matter) it is absolutely critical to have a highly experienced short sale specialist handling the sale to ease negotiations and assure the most desirable terms of approval possible.
- Jumbo loan short sale approval timelines are generally faster than conforming loan short sales. Because these are almost always portfolio notes (the lender actually owns the loan) there is an improved timeline for approval as fewer entities are involved. Loss mitigation turnaround time and responsiveness is generally an improvement over other short sales.
As Connecticut’s leading short sale experts since 2010, we have successfully closed hundreds of short sales throughout the state, including many portfolio and jumbo loans. We provide a seamless, full service solution for your possible short sale.