Foreclosures Book

; ; A negotiator must be assigned. Again, this could take anywhere from a few days to a month. In some instances, a second negotiator will be assigned, delaying the process even further. ; ; The lender may order a broker price opinion. This can slow the process. ; ; Without going into needless detail, your lender may be engagedwith other entities for securitizing and servicing your loan. Under this “pooling and services agreement,” it could take an extra 30 days to review your short sale application. If the loan was sold to an investor, that investor will have to approve the short sale. ; ; The lender may require parties to the sale to sign an “arm’s-length” affidavit. The lender wants to ensure the seller and buyer aren’t friends, relatives, or otherwise engaged in a fraudulent deal that would allow the seller to profit from the short sale. ; ; After all their other conditions are met, the bank may issue an approval letter for the short sale. WHAT CAN GOWRONG? In some cases, the mortgage holder (lender) may decide that the payout frommortgage insurance is enough to cover their loss if they simply foreclose. If the title is not clear — perhaps there’s a second mortgage or other liens against the property — then the short sale is less likely to receive approval. Sometimes, the foreclosure process is already too far along. As we’ve discussed elsewhere, it’s important to prepare early. For a short sale, you’re not likely to have the same amount of time you could take for a more traditional real estate transaction.