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Posted by steele in minnesota on January 01, 2007 at 10:09:39:
In Reply to: Re: What qualifies a property for a short sale? posted by Diane on January 01, 2007 at 00:21:10:
"A short sale, i.e., a foreclosure prevention / preforeclosure option constitutes the lender's willingness to accept a minimum of 82% value of the property. If allowed by the lender, then foreclosure is postponed, allowing the owner 60-90 days to list and sale the property. If there are proceeds remaining after the arrears and pricipal are satisfied, the owner will receive the remainder."
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Still confused. How can there be anything left over if the arrears and principal is satisfied? That would not be a shortsale by any definition I have seen. Isn't a short sale by definition citing the fact that proceeds will not cover the costs and old mortgage and the lender is afreeing to take a lesser amount?
To me what is being suggested is a case of "I want the bank to take less than I owe and, oh, I want some money as well."
Either you are short or you are not. One of the typical criteria of a short sale is that the seller does not get money. Sometimes a modest moving allowance of a $1,000 or less, but that is it. And slipping money under the table to the seller is pure and simple fraud.
Are you blending short sale and a regular foreclosure sale? In a regular foreclosure sale any money left after all bills are paid does go to the original owner. But typically there is nothing left.
Steele, still confused in Minnesota
