Thanks SD R!
I haven’t thought about what the first lender will think about it. This is clearer now. Of course, I don’t like the whole process of short sale and I’d much rather that such thing did not exist (BTW, when did the short-sales appear? were they always present?).
The problem that happens is that you don’t have enough cash leftover to be willing to part with it for those unexpected expenses. If I am planning to put 15-20% down, but so that I have 3-6 months of PITI cash left over, I would be indeed very reluctant to part with that reserve – let’s say 20-30K? – to satisfy these unexpected conditions. And I won’t do it. I’d be wasting my and my agent’s time – if I’d have read these in the begining I’d say – let’s move on, we can’t do this. A few K I could understand. (for a 500-600K house I am talking). And again, another sore point, the sales price will NOT reflect accurate the reality of how much the property sold for…
