Remember my post last year, called “Short Sales: A Trap for the Unwary?” It described how short sales weren’t always the deal they seemed to be for sellers, whose credit rating suffers more than people realize, and whose lenders, if and when they finally get around to approving the deal, might sneak in language making the homeowners agree to continued liability for the remaining mortgage debt.
Well, I wish I could report that things have improved, but according to a recent report in Realty Times, by Bob Hunt, California short sales have gotten more difficult than ever, impacting buyers as well as sellers. Fewer than 3 in 5 short sales even closed successfully last year, and the lender-approval process often took sixty days or more. Pending legislation to improve the process has gone nowhere.
Is it time to rename this a “long sale?”