Foreclosure in 92506>Question Details

Pammy237, Home Seller in 23188

Can you do a short sale on a second home?

Asked by Pammy237, 23188 Fri Mar 12, 2010

Help the community by answering this question:


All short sales are "subject to", bank approval. You really should seek the advice of a Real Estate Attorney and a CPA to see what the tax ramifications and also the possibility of the bank coming after you for the default amount in the future. Every situation is different and you need expert legal advice before short selling a second home.
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1 vote Thank Flag Link Sat Mar 13, 2010
Hi Pammy. In order for Lender (s ) to approve short sales they will depend on several factors.
Each lender has their own guidelines and requirements
that you have to meet in order to get your short sale approved.

Simply stating, 'My house is worth less than the loan and I don’t want to pay any more,' will not be acceptable.
For some lenders if you are on time and there is no hardship.
You can certainly attempt a short sale, True .
Some lenders won't consider a short sale without hardship, But if the option for the lender is accepted, the short sale, or accept the keys, , they'll often choose the short sale. If you continue to make the payments on time through the short sale , .
One thing be prepared for a possible cash contribution. The better the income/Assets, and with a lack of hardship, the more likely they are to seek a higher amount in order to release the lien.
If your having a hardship you have to prove it.

Call me for a no obligation Consultation to see if Short sale is your best option.

I will help you throughout every step of the short sale process
Evaluate your situation, and utilize the best tactics to a successful short sale
I will negotiate directly with the lenders or loan service providers on your behalf.
Through my experience in processing short sales I know what lenders seek out when submitting a short sale package.
Through my aggressive marketing plan find a buyer to meet the lenders or loan service provider’s requests.
Give me a call or send me an email to set up a FREE consultation.
You can email or call me with any of your questions regarding the foreclosure and short sale process.

Cecilia Rodriguez Pre foreclosure Short sale Specialist.
951-858-5797 Lic # 01505884
Prudential California Realty
1 vote Thank Flag Link Sat Mar 13, 2010
Absolutely. We are doing short sales for several clients, with financial hardship, who own multiple properties. Just make sure you work with an agent who truly understands the process. We work in Southern California so feel free to contact us for a confidential consultation. Knowing your options and educating yourself is crucial.
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1 vote Thank Flag Link Fri Mar 12, 2010
Yes you can. Right now I'm doing a short sale for a client that has 3 homes. They are having a financial hardships and this is the only answer. You will have to have show just cause through a hardship letter, provide the last two years of tax returns, the last 6 months pay stubs and the last 6 months bank statements, so get you paperwork organized. You can start a short sale without even missing a payment, so there's no need to wait. The process is being streamlined by the banks, and with good credit, you could be ready to buy another house in less than a year, depending on all your circumstances. I'm a short sale specialist and would be happy to help guide you though the process. Let me know if you need help.

Mark Dooley
Prudential California Realty
DRE Lic, 00954654
951 313-9008
1 vote Thank Flag Link Fri Mar 12, 2010
Hi Pammy,
A short sale can be done on any home.
It is simply up to the lender to approve or disapprove of the short sale.
A short sale is a negotiation to get the lender to accept less than is owned as opposed to going to foreclosure.
The agent you choose to hire for the short sale has to up on negotiating and hang in there and keep trying to get the bank to accept.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
California Department of Real Estate License # 01312992
0 votes Thank Flag Link Wed Mar 31, 2010
You can do a short sale as long as it is approved by the bank/lender. You would need to apply for the short sale, you can use the help of a real esate professional to get the process started. In basic terms you are applying for a short sale in much the same way you applied for your mortgage. So, if you have a valid reason for the short sale, even if it is on a second home, there should not be a problem, but that is up to the lender to decide.

In order to be approved for the short sale, you will need to follow some guidelines, which vary depending on the lender you used. Be prepared to submit a hardship letter detailing the circumstances behind the short sale; Current financial condition of the seller, ie; pay check stubs, bank statements, a personal financial statement. Additional, they may require a monthly budget assessment. Lastly, a signed, valid purchase and sales contract, preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender.
0 votes Thank Flag Link Wed Mar 31, 2010
Sure, if the bank allows it. It's always contingent upon the bank(s) approval. I've seen it done before. Good Luck.
0 votes Thank Flag Link Fri Mar 19, 2010
Hi Pammy,

You can do a Short Sale, Really depends on several things. Your financials, hardship, etc.
If you prove to the lender your having a financial hardship you could be approved.

There are programs out there where you can do a principal reduction. So think about it this way. If you could reduce your mortgage to the current market value and you could then afford the home would you still want to sell or would you want to keep it??
You should make your decision based on all facts , potential tax liabilities from forgivness of debt income.

If you want to keep the home you may qualify for a modification. Lender do want to work things out if it makes sense.
Best of luck.
JoAnna Jensen
925 699 5041
0 votes Thank Flag Link Fri Mar 12, 2010
You sure can but be careful many think short sale is an easy way out but it is a form of foreclosure which is a life changing event.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of-foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like your job, yes employers are checking credit records these days.

Your credit score will be reduced by 200-400 points, short sale a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure
* Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
* Buying After a Foreclosure with Extenuating Circumstances
The waiting period is 3 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure with Extenuating Circumstances
The waiting period is 2 years up to 7 years.
* Buying After a Short Sale
The waiting period was just upped from 2 to 3 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. It's a reason to stay current on your payments while the home is on the market as a short sale.
In addition to the waiting period, most loans require a minimum down payment of 10% and a minimum FICO score of 680. The home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.
0 votes Thank Flag Link Fri Mar 12, 2010
Be advised that your general financial condition will be scrutinized. Having that ready to be submitted properly makes all the difference in the world when it comes to having a successful outcome on any short sale of loan modification. As my colleagues Melisa & Jason pointed out earlier, it is crucial to get someone who knows this area of Real Estate and who knows it well. Knowlege is truly power in this arena.
0 votes Thank Flag Link Fri Mar 12, 2010
You can do a short sale on secound homes.
0 votes Thank Flag Link Fri Mar 12, 2010
If you can prove hardship to the lender, yes, you can--however, not knowing all your financials/assets--and in oder to protect them, if applicable-- consider a consultation with an attorney who specializes in real estate, before initializing your short sale.
0 votes Thank Flag Link Fri Mar 12, 2010
You can do a short sale with any property JUST AS LONG as the lender approves it.

Confer with lender determine all particulars you would need complete the package based on their requirements

Lynn911 Dallas Realtor
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0 votes Thank Flag Link Fri Mar 12, 2010
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