Jim Paulson, CRS, GRI, EPRO
Broker/Owner - Progressive Realty Corp
There are people who have had rentals or 2nd homes that they have had to short sale and they were able to keep their primary property. For a professional opinion on that, you would want to talk to a real estate attorney. I have also know people who have bought a different house and moved and then did a short sale on their original residence. The banks will want to know what the hardship is that has made a short sale come to pass.
What your husband needs to do is to get an agent to get his home listed and get an offer on the property. Once the bank has that offer and things progress, you will hear back from the bank as to their terms and conditions of the sale. At that time, your husband will have the option to agree or not agree to the terms of the bank. It is a matter of negotiating throughout the process to come to terms that will be beneficial (hopefully) to all parties. Depending on the bank that is being requested to take a short payoff on their loan will depend on how they will deal with the short sale. There are several things that all banks want when considering a short sale and those are a) bank statements b) pay stubs c) hardship letter d) tax returns e) financial statements. These items plus any other item they request are the basis for their decision along with a broker price opinion of the property and eventually an appraisal. Since you are married, they may require these items from both of you. There are some situations where the short sale lender has asked for some contribution towards the short sale. This is part of the negotiations once the bank has considered the offer and all of the others items involved in the situation. One thing I do know is that a short sale on someone's credit is better than a foreclosure. Since each situation is different, let me know if you would like to take some time to talk.
-My husband's house is worth about $77K, but has $119 left on the loan. He is the sole income coming into our house as I'm a stay at home mom. We have used his house as a rental but are losing money on the mortgage and upkeep. We don't have any other assets and the only other debt we have is a business loan my husband took out 10 years ago and we will continue to pay on for the next 10 years. We have joint savings and checking, but no other debts, joint or separate.
Thanks for all the info!