Short Sale Leverage vs your Lenders

How to gain leverage against your Lender(s)

Some short sales go well and some short sales do not. 

Before you begin the process you figure with the average Realtor you have a 20-40% chance of success and then you have to ask the question - What kind of success is that?

In many parts of California the easy part of the short sale is getting the offer.  But then the short sale has to be approved and the terms have to be negotiated.  Many short sales have been approved in which the lender reserves its rights to go after the borrower for the deficiency after the short sale. 

If you have assets or plan to have a salary which could be attached - is that really your idea of a good short sale?

There are many ways to gain leverage against the lender and there are good strategy and poor strategies.

For instance we frequently get approached by sellers who have been advised to stop paying on the first but to continue to pay on the second.  So far I have never met any one with 2 loans or less who could explain why that is not a dumb strategy for California sellers. In fact in the people with whom I have spoken that strategy amounts to practicing law without a license and being just plain negligent.

If you have assets to protect, please speak with an attorney about the following options:

Lender liability audits

Respa Letters

Short Payoffs

Debt disputes (may help credit)

Short sales while remaining current

Short sale while remain current on the first loan

Loan mods

Walk Away Plans

Threat of Bankruptcy

Loan Stripping

Actual Bankruptcy

Finally, you may wish to have your attorney actually do the negotiating.  You would be surprised at the respect an attorney may be able to get for your file.