Is short sale now illegal

[Ralphy Rosado]

Is short short now illegal. I hope not cause I would love to get into it

[Denise Evans]

The only time the bank says "not enough" is when their appraisal indicates the buyer should be offering a significantly higher amount of money. If a servicer says "not enough," then you should ask something all the lines of some of the following:

Me: What is your appraisal?

Bank: They either (1) tell me and I laugh because it's ridiculous and we talk about the process to appeal the appraisal, or (2) they tell me and it's realistic and I have to decide what to do, or (3) they don't tell me. Let's suppose they won't tell me.

Me: Do you need more money in the deal, or do you think the borrower should be able to bring cash to closing?

Bank:  They almost never think the borrower should bring cash to closing. If they do, they've misinterpreted your paperwork, usually. Discuss that, because THERE is your problem.  Usually, however, they will tell you how much more money needs to be in the deal, based on the appraisal, even thought they won't tell you the appraisal amount.

Me: My buyer won't increase his price that much. How about if the buyer increased his price by 1/2 of the amount you need, the seller borrowed some money from relatives for 1/8 of the amount you need, the real estate agents agreed to cut their commissions to generate 1/4 of the money you need, and the HOA receiving delinquent dues agreed to compromise some and generate the other 1/8 you need. Would that work?

Bank: Almost always, they will go along with this.