Fairfax Short Sales: Is your short sale lender delegated?

Fairfax Va – About 80 percent of the loans that Bank of America holds are not owned by the bank.

For many people, this is quite shocking.

The truth is, a majority of those loans are owned  – or at least insured – by the federal government.

If they own them, it’s through Fannie Mae & Freddie Mac.  If they insure the loans, they’re doing so through FHA and VA

All other loans are owned by Wall Street Firms, Hedge Funds, Pension Funds and other investors.

With all of these different loan owners, it begs the question: Who makes the decision on a short sale?

It depends.

Bank of America can decide whether to approve or deny a short sale if the loan is delegated. This means that the actual owner has given the bank the authority to make that decision on the owner’s behalf.

Typically a supervisor at Bank of America will make a final decision which is generally advantageous for you because it means you’ll have a response on your short sale offer quicker.

A Non Delegated Short Sale can drag out longer. First you have to submit everything to the short sale lender, who then  looks everything over.

After they have all the documents they need, they’ll submit the complete short sale package to the loan owner. The loan owner will then review the materials and make a decision.

When we’re working on a short sale with a client, we make sure to find out upfront whether the loan is delegated because that tells us who the ultimate decision maker is.

Here are a few guidelines for whether or not a short sale has been delegated. Is the loan one of the following?

FHA Loan. Not delegated. The lender assembles a package and submits to FHA for approval.

Fannie Mae Loan. Sometimes delegated, but not always.

Freddie Mac Loan. Our experience is they usually are not delegated.

VA Loan. Not delegated. The lender assembles a package and submits to VA for approval.

Sliced and diced loan (Wall Street Owned). Almost always delegated.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.

Thanks for reading this,

Thierry Roche

Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, ‘Inside Real Estate’

Phone: (703) 322-0600.

Thierry@ThierryRoche.com

Thierry is an advocate for Homeowners in Distress. Thierry has made it his personal mission to help as many people as possible avoid foreclosure and keep their home.

Thierry Roche specializes in loan modifications and short sales in Fairfax Virginia. Fairfax Loan Modification Help. Fairfax Short Sales. Fairfax Short Sale Realtor. Fairfax County Short Sale Realtor. Fairfax VA Short Sales. Fairfax Realtor.

Copyright 2011 Inside Real Estate, LLC. All Rights Reserved.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Roche’s personal views and do not reflect the views of RE/MAX Premier. This information is provided as a courtesy to our viewers to help them make informed decisions.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *