What’s the Short Sale Hold Up?

Torelli Realty, a real estate company based in Costa Mesa, CA that specializes in residential property, homes, townhomes, condos, short sales, and REO’s, knows all about short sales, the hold ups, and the flip side.Today in Inman News, columnist Bernice Ross gave information about some of the things that turn short sales into long sales.Costa Mesa homes that are in the short sale process were usually bought using more than one lender and sometimes PMI (private mortgage insurance).  Most buyers had a first mortgage, a secondary loan, and then PMI to insure the difference.  The first mortgage company who loaned the bulk of the money may be eager to complete the short sale so that they don’t continue to lose money.  However the second loan company & PMI company may not comply for various reasons (for instance, price declines in the Orange County real estate market might have wiped out a company’s stake in the home value). It takes two to tango and it takes agreement from all parties to do a short sale. Is there anything a real estate agent can do to help get everyone on the same page?  From the start it is a good idea to approach all lenders and find out their terms.  If the companies are on completely different pages the short sale may not be practical.  Make sure you deal with Realtors who understand these things so that they can guide you toward short sales that will move through the motions more swiftly.