The important thing to remember is you MUST show a valid hardship. You will need to demonstrate that even if a hardship doesn't exist now, one will in the near future. This impending hardship will force you to become late and you are trying to head this off before the fact.
Your hardship can be a job transfer, medical issues, divorce, loss of job, rate adjustment or that your monthly debts exceed your income and your savings will be used up by a certain date.
I hope this helps answer your question. Let me know if I can be of any further assistance.
All the best!
Lic # 01334440
I would recommend you meet with a couple agents that are short sale specialists. Not ones that just advertise but have been doing short sales since the beginning. I would be glad to go over your situation and let you know what I think. I just am seeing a lot of agents that have NO CLUE what they are doing with short sales or ones that try to outsource bank negotiations. That is not a good strategy as I have seen so many homeowners lose out that way.
Stefan West - 951-894-6199
Certified Distressed Property Expert
Good Luck Julie!
I would recommend you apply for a HAMP loan modification first. A denial of a HAMP modification gives you an automatic short sale approval under HAFA. You want to make sure that your short sale is approved under HAFA because it eliminates most of the contingent liability you may have for taxes etc.
Not all of the lenders are playing by the HAMP/HAFA rules, so make sure you hire an agent who is thoroughly familiar with your options under the program.
I closed a short sale earlier this year where the seller was current up until the date escrow closed.
You have got some great advise here. Now where to go from here. Most of the info you are looking for can be found at the U.S Department of Housing and Urban Development (HUD) http://portal.hud.gov/portal/page/portal/HUD They can answer most of you questions and this is free advise. After you speak to one of there rep's Then you can make some clear decisions.
Good luck with your agent interviews, If you need anything or have additional questions feel free to contact me.
As many have said, YES you can short sell a home where the owner is current on the mortgage. Short sales are based on either current or impending hardships.
Here are a few of points not previously presented:
1. If you have an FHA loan, guidelines used to be that you had to be 31 days delinquent on your payments to qualify. Recently the wording has been changed to "Borrower must be delinquent or default is reasonably foreseeable." Unfortunately, not all servicers are staying on top of the changes, so you have to have a realtor who is. You must also have the home listed with a licensed real estate agent to qualify.
2. If you have a Freddie Mac loan, you MUST BE 60 days delinquent to be considered for a short sale.
3. A job forced move, more than 100 miles away from your current address, is a sufficient hardship to qualify for a Short Sale.
I would be happy to discuss your particular situation with you, and help guide you through your options. Feel free to call me at 424-2HELP12 (424-243-5712). Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
For the most part yes you can.
If you are able to show proof that you are running out of funds and see no way to pay in the near future, They are usually responsive.
It is good to see that you are responsible, and be proactive, by trying to do the right thing as you can in the beginning.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992
I can appreciate your question, becuase it is asked all the time. In the past two years my team has closed over 100 short sales. In all those short sales the only one we were able to get approved was a client who was in the financial industry and by missing payments and damaging his credit he could lose his job. The bank saw this as a further hardship and approved his short sale without being delinquent. If you have any further questions, please feel free to call or email. Have a great day.
It all depends on your bank and the rest of your financial situation. I just short sold a home with the same scenario in three months that closed yesterday. I need more specifics on your situation to really help. Contact me when you can. Good luck!