Maybe. Maybe not. Some lenders/investors will require the Borrower to be 30/60 days late to receive short sale approval and some won't. We are a company who has successfully handled lots of Short Sales we still haven't figured out what triggers the "You must be late" requirement.
Recently we have experienced the following:
- Sellers that have a legitimate hardship such as illness or job loss are more likely to be granted an exception on being late in order for the short sale to get approved.
- Every Lender/investor is different and we have closed short sales where the borrower did not have a true hardship. Many times these approvals take longer because they are less of a priority to the lender and in some cases a seller contribution may be required in order to receive a waiver of deficiency. However, we almost always are able to get the approvals.
It appears that there Is no set standard for whether a borrower must be late as each short sale is unique and each lender looks at the process of approval differently.
Our best recommendation would be to initiate the short sale to determine what stance the lender is going to take.
We are available for questions at 561-624-9422.
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