Why Won’t My Bank Approve My Loan Modification?
In Our “Ask The Expert” section we had the following questions from Jason….
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“I lost my job and had to take another job making 35% less money than I was previously. I have gotten behind on my mortgage payments and been trying to do a loan modification for almost 10 months now. My lender just denied my loan modification and told me to sell my home on a short sale. Why are these banks not approving more loan modifications? ”
Knoxville Short Sales How Do You Make The Process Faster and Easier?
Here is a problem: Buyers don’t like short sales because of the uncertainty and the wait. How do we solve this problem?
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
During the short sale process, if the appraisal gets completed and the bank won’t accept the buyer’s offer, then request that the bank to keep the file open.
There are several reasons that banks should be willing to keep the file open.
Knoxville Short Sales: Why Won’t My Lender Allow Me To Walk Away With No Deficiency?
In Our “Ask The Expert Area” recently received a question from James. Here was his question.
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“We are in the middle of a very long negotiation with a large national lender.
I had my agent put a clause into the contract stating “upon approval of short sale by sellers’ lender, lenders, & or affiliates, client, or heirs will be released from any monetary shortages or deficiencies from said sale of stated property upon successful closing and transfer of title from that date and forevermore.”
The short sale negotiator, Nathan, has advised my agent that he will reject the file and close it out if we don’t remove this from the contract. What do you think?
After reading your comments, I am not sure of what will happen. How should I pursue this? James.”
Knoxville Short Sales Negotiators Do They Break The Rules?
We have spent the alot of time keeping up with the rules for the different types of short sales.
The rules are different for an FHA Short Sale, a VA Short Sale, and a Fannie Mae Short Sale. This was an FHA loan. Here’s what happened.
FHA puts out a letter called “Mortgagee Letter 2008-43.” It details exactly how the banks is supposed to handle a short sale on an FHA loan.
This letter is 16 pages long and gives them specific directions on how much to pay agents, what percentage of the appraisal they can accept, etc. (If you’re doing an FHA short sale, then Google “Mortgage Letter 2008-43.”)
Knoxville Short Sale Question: Why Does My Lender Want My Last 2 Pay Stubs?
Question in our “Ask The Expert”….“Why does my lender need copies of my last 2 pay stubs? Are they hoping to garnish my paycheck?
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I am concerned that if I give it to them, then they will use it to garnish my paycheck.
They have said if they don’t get them, then they will not approve the short sale. What should I do?
How do I find a Knoxville Realtor that specializes in short sales?
Knoxville TN – Are you looking for a Knoxville Realtor that specializes in short sales. It is important that you pick the right agent. Many agents turn down short sale listings because they are unfamiliar with the process. These transactions are much more difficult and complicated than your average real estate transaction.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Because of the foreclosure process, you usually only have one chance at a short sale. If your first agent isn’t competent, then you risk losing your house to foreclosure. Then you have to wait another 5-7 years to buy your next house. First, ask the agent you are interviewing why they qualify to help you. Do they have any special short sale training or designations? Many agents have taken specialized training and education. They care about being up to date with the current trends in the market.
Knoxville Short Sales: Should you be embarrassed to short sale?
Knoxville TN – Many people are embarrassed that they are short selling their house. They feel like they are somehow being dishonest or shady. Neither one of those is true.
A lot of the people short selling today never had a blemish in their credit. They lived perfect, responsible financial lives. Then the real estate market crashed and left them owing way more than their home was worth.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
For years everyone had told them that couldn’t happen. Many of those people also lost their job for the first time in their life. You must remember, you are not alone. We are seeing as many short sales in the upper income brackets as the lower income brackets.
When A Bank Should Accept A Buyer’s Offer To Buy A Knoxville Short Sale
Knoxville TN – A bank should accept your short sale when the following rules apply. All banks and servicers have a fiduciary duty to the investor of the loan.
If they own the loan themselves, they have a fiduciary duty to their stockholders. The duty is to get that investor the most money possible.
So, a lender should accept an offer if it will net the most money.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
The answer is that it is unlikely that any of that will happen.
Here is how we can assure the negotiator that the offer will net them the most money. Your only job is to prove that to the lender.
Do that by showing them that the property has been on the open market for 60-90 days. It is best to be able to show that the house was easy for buyers to see and other agents to show.
How To Ensure Accurate Appraisals And A Successful Knoxville Short Sale
Knoxville TN –As we talk about in a previous posts the biggest threat to your short sale is a high appraisal. Which is why your agent needs to make sure the appraisal is accurate.
Here is the process we follow to ensure an accurate appraisal.
The person doing the appraisal doesn’t understand why the home is selling for a specific sales price. They don’t understand why buyers are only willing to pay X. That is why we must explain that to them.
Why Your Agent Should Check That Appraisals Are Accurate For Your Knoxville Short Sale
Knoxville TN –In a previous post we talked about how important it was to make sure appraisals are accurate on short sales. The biggest threat to your short sale is a high appraisal. Which is why your agent needs to make sure the appraisal is accurate.
There are a lot of opinions on how to ensure the appraisal is correct and accurate. You need to check and make sure your agent is willing to do the extra work.
