Short Sale with Second Mortgage through Credit Union

**RogerC** · 11-18-2010, 05:57 AM

I've been told Short Sales where the Seller has a second mortgage can be nightmares to get through the banks and can take a long time, in particular due to processing of the second mortgage. Does anyone with experience know if when the second mortgage is with a credit union, does the Short Sale tend to go any smoother/quicker? I want to make an offer on a home, but I have a relatively short time-frame I need to meet for getting the house. I'd appreciate any thoughts on dealing with credit unions as opposed to banks. Thanks!

**Chrisopher Moltisanti** · 11-19-2010, 03:28 AM

In my experience, Short Sales in general take an average of six months to close. Regardless of the number of mortgages on the house, through any union or bank or any other factors you can think of. They never go smoothly even if a buyer comes with cash; there's just too many variables at stake coupled with employees at the bank with only a high school education.

Some short sales I've seen took a year to close.

**Greg** · 11-20-2010, 10:56 AM

Originally Posted by RogerC

I have a relatively short time-frame I need to meet for getting the house.

Then shorts sales are not for you. If you really are on a short time leash then look for a foreclosure or conventional sale. Short sales never proceed quickly.

**realestategirl** · 11-20-2010, 06:28 PM

Length of time in short sales are oftentimes affected by the reason as to why the seller is opting for a short sale. It won't be a problem if it involves an emergency like someone in the family is sick or you are going thru a divorce. It would be difficult to get approved though if you a preexisting loan on another home, the approval time would get even longer.

**minnesota-mls** · 11-21-2010, 12:47 PM

Our team here in Minnesota works with a number of buyers and sellers on short sale transactions.

We have not found that it makes alot of difference who the lender may be: local bank, larger national lender, etc.

The key really is having a strong listing broker that is familiar with the process, has all the correct paperwork in with the lenders, and is relentless in follow up.

With that all being said, we have seen a number of buyers get some outstanding deals on some MLS listings by purchasing short sales. The key is patience. But it can really pay off for some buyers. Thanks again!

**acobbon22** · 11-24-2010, 03:22 AM

Originally Posted by Greg

Then shorts sales are not for you. If you really are on a short time leash then look for a foreclosure or conventional sale. Short sales never proceed quickly.

But short Sale a Good Alternative to Foreclosure as which damages your credit more than a short sale does. You don’t get to keep your home, as you do with a loan modification, but you limit the impact on your credit report and keep your credit options intact.