What is a Short Sale? In a nut shell it is a situation where a seller can not sell a home for enough money to pay off the mortgage. Currently, there are many homeowners in the Belen and Los Lunas area that are in this situation. As professional Realtors, we have be troubled with a long and arduous process to get Short Sale offers approved. Some deals taking as long as 6 or more months to get to closing.
You might think that it would be out of the question for your lender to accept less money than what is owed, right? Well, in many cases the lender will benefit from a Short Sale as opposed to Foreclosure. Once a lender has foreclosed on your home they now have to maintain, secure, and market the home for sale, not to mention pay their attorney for handling the foreclosure. A typical foreclosure in the State of New Mexico, when dealing with a Mortgage as the security instrument, will take any where from 7 to 12 months from the day the borrower makes their last payment.
The announcement that the Treasury has created and released long-awaited guidelines to streamline Short Sales is big news. This will have a huge impact on the homeowner that is backed up against the wall without many options. The most significant points in this guideline are the following: Short Sale requests must be responded to by the lender within 10 business days, Seller will be released from all liability for repayment of the mortgage debt, and the seller is entitled to a relocation incentive of $1,500.00 at closing.
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