Two lenders can delay your Wildomar Short Sale
The back and forth bickering that goes on between lenders in some short sales can cause setbacks for your Wildomar Short Sale.
The first lender doesn’t want to issue approval until the second lender issues its approval letter. Of course, the second lender doesn’t want to issue its approval letter until the first lender issues their approval letter.
In California, it makes sense for the first lender to be reluctant.The second lender is typically in a position of take nothing. The second lender, especially if it’s a purchase money loan, will get wiped out in a foreclosure and end up with nothing. It is in no position to negotiate. The only position it has, is to disqualify the short sale and stop the short sale from going through, but that does not make sense from a business standpoint. The second lender stands to receive funds by the first lender only if the deal goes through. Otherwise, the second lender would get nothing.
The first lender gives up certain rights upon short sale approval that the second lender does not. Those rights involve dual tracking. It’s the only part of the so-called dual tracking law that affects a short sale. It says that when a lender issues a short sale approval letter, the lender must stop all foreclosure action and the lender can’t move forward on Notice of Default.
If you have any questions about a two lender short sale, please call me and I will be happy to assist you in getting your sale APPROVED!!
Odalys Simon, Realtor