Friday, September 16, 2011

Short Sale Approval Delayed...

I got word that the Seller of the condo unit on which I made an offer just got approved under the Home Affordable Foreclosure Alternatives (HAFA) program. According to this article, HAFA is "[a]imed at borrowers who are underwater on their mortgages and who've been denied a modification via HAMP [Home Affordable Modification program]... The program pays cash to both the borrower and lender to encourage a short sale, a deal in which the bank accepts the proceeds of the home sale as full repayment of the mortgage debt, forgiving any loss." Supposedly, the Seller will be getting $3,000 if this deal goes through.

Assuming that the Seller's agent is telling the truth, she resubmitted the short sale approval paperwork on Tuesday. The Seller's agent also claims that the short sale lender's own negotiator is recommending my offer. I've been told to expect a response in the next 30 - 45 days.

I guess I shouldn't presume that the short sale approval will be forthcoming, but I have to admit, I have. In order to temper my expectations, I've been reading blogs like this one, which is forecasting another significant price correction in the California housing market.


loanmodifications said...

A loan modification program that offers a principal reduction so that the mortgage balance more accurately reflects the homes true market value is one way to entice borrowers to keep making loan payments and avoid foreclosure.

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