Well we finally received a word from the lender. After 11 months of waiting they have declined the short sale for the property. What does this mean? At this point the property will go to Sheriff Sale. The Buyer can bid on the property at the Sheriff Sale but will be responsible for outstanding liens over and above the lenders “upset figure.” If the lender takes the property back it will then be listed for sale. This process can also take months. Anyone looking at a short sale needs to be prepared, not only to wait for responses but also to realize that they may not get the approval/house. In the meantime mortgage commitments and appraisals are a cost to the Buyer. It is important to know the property and its’ encumbrences. Time, patience and committment are requirements for a short sale with all parites including a realtor. Ask questions, do your homework and be prepared.
