It’s becoming more and more obvious as I tour, show and evaluate properties that there are many homeowners coming up on three-, five- or seven-year adjustable rate mortgage revisions. And in many cases, they won’t be able to refinance or keep their property at the higher interest rate. Those are definitely ingredients for a rise in short sales over the next year.
But fortunately, some of the major lenders are warming up to short sales, according to a story yesterday in the Financial Times. Bank of America, in particular, has added staff to handle short sales. And Wells Fargo, JPMorgan Chase, and other large banks seem to be following suit.
So if you’re evaluating a property that will be a known short sale, have your agent find out which lenders are involved. If it’s one of the big boys, it might mean a shorter waiting time for short sale approval. No buyers want to sit around for three months waiting for their offer to be approved by the bank; if the wait time is no longer in question, short sales may be easier to navigate. And if you’re a potential seller with one of these large banks holding your loan, now may be the time to work something out.