There are many reasons why you can’t win a Metro Detroit short sale. Here are some of the reasons why a Metro Detroit short sale never goes to the closing table:
- The sellers are just trying to delay moving out of the house. They use a short sale as a delaying tactic.
- The bank is inept. Not enough man power, not enough trained employees to handle the short sale.
- The sellers don’t qualify for a short sale according to the bank’s standards. There may be no financial hardship
- There may be two mortgages and the second mortgage company may be uncooperative
- The bank may want more money than you are offering.
- The latest scam in Metro Detroit real estate is homeowners short saleing their house to a relative. It is not supposed to happen. In fact many banks have a form that the buyer signs that they are not related to the seller. But it is happening. I myself have heard of one and have heard of others lately.
The one I know of (or believe I know of) was helped by the real estate agent. He was a friend of theirs. I think the Northville home went for over $500,000 originally. Then the homeowner bought it back for about $300,000. Not bad to shave off $200,000 off your mortgage. The way they are being able to do a Metro Detroit short sale like this is by having a relative with a different last name. Sometimes it is an in-law, sometimes a future wife, or sometimes even a spouse of a relative.
It is fraud if you sign a document that says you are related, and you really are. I know we all want to help our family out but you going to jail to save them money is not the smartest thing to do. Our prisons are full of people that thought they were really smart.
My opinion of Metro Detroit short sales is to stay away from them if you can. There are two many good houses to chose from to wait for 4 -6 months on a uncertainty.
Russ Ravary your Livonia real estate agent serving Oakland, Livingston, Macomb, and Wayne County real estate
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