Is a Short Sale The Answer?
Posted By admin on January 29, 2009
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There is a Formula to Whether Your Short Sale will be Approved
I have fifteen short sales that I am working on of those fifteen all of the lenders are stating that they need to net a certain amount. I was beginning to think this was an isolated case until I came across the article at http://latimesblog.latimes.com.
I discovered from this article that if the seller has a FHA loan, the lender “requires a net of 82% of current market value. I was relieve to find out it is a formula that the lenders use.
The article went on to state that VA loans are required to net 88% of the current value. Still yet, the conventional loans are required to net between 78% to 85% of the current value.
As a homeowner who needs to sell it may be helpful to understand this formula. Remember, a short sale can save your from a foreclosure as long as the lender can yield enough money from the sale.
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