A recent web post listed three reasons why short sales stink: your credit score takes a big hit, some states allow lenders to sue you for the price difference, & the grace period is eliminated. More details here from this post.
Here’s a Glendale, Arizona home owner who’s trying to sell his home as a short sale. Let’s say he gets an offer. He’ll then have to prove to the bank that he has a legitimate hardship, like loss of job, loss of spouse, new medical condition, etc. And he’ll have to prove that he exhausted all means to correct his financial situation. Like selling his jet ski, his motorcycle, and his bicycle first!! Good grief.
Phoenix real estate agent Jay Thompson has encountered situations where home owners want to sell as a short sale because their homes’ values have dropped, not because they cannot afford the mortgage. Read more here; it’s mind boggling.