Home Selling in Hayward>Question Details

Haywardcondo, Home Seller in Hayward, CA

Do you have to live in your property for a short sale? I rented it out for the past year and the lease just expired. Can I short sale with BoA?

Asked by Haywardcondo, Hayward, CA Tue Jul 26, 2011

I have lived in my condo for 2 out of the past 5 years, so that, by IRS standards, I think I can claim it as a primary residence. But I'm not living in it now and I don't play to live in it again since I just want to short sale it and move on (my previous tenant - who never paid rent - took 6 months to evict and I feel very burned by home-ownership). I want my best possible shot at gettin approved for a short sale and it seems to me that living in the condo raises my chance to get one approved - is that true?

Help the community by answering this question:


If you're looking to qualify under HAFA, it's not necessary that this is your primary residence. Short sale simply means lenders agree to take a haircut on the amount owed to allow you to close escrow when your house is "underwater".

Under HAFA, you get $3000 relocation costs which other short sale program may not offer. So if you're not concerned about getting that money, you don't consider whether to stay in that house as opposed to rent it out.
0 votes Thank Flag Link Wed Aug 31, 2011
You do not need to live in your property for short sale. Even though the house is rental home, the lender will approve short sale but you must have financial hardship and find the buyer with excellent offer ( bank approved price ). B of A is the best to deal in short sale. If you need help to do short sale, don't hesitate to call me at (510)292-0636. The service is free of charge for seller and we will prepare for all short sale package and negotiating with our short sale team. We also have investor (buyer ) on hand. Blog: http://www.approveyourshortsale.net
0 votes Thank Flag Link Wed Aug 31, 2011
Short sales are for those with a hardship.
Living in the home may actually benefit you tax wise. See a CPA for tax advise regarding short sales primary residence meaning living in it or Income property. Trust me It is different than you think. I urge you to take the time to look into it. The mistake can cost you thousands and thousand of dollars and Uncle Sam does not relent.
Yes people who do not live in the home can short sell their property.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Tue Jul 26, 2011
To qualify for a short sale, you have to prove hardship. Feeling burned out by home ownership may not be justifiable.

One of the reasons why short sales fail is because the property owner couldn't prove or didn't qualify for a real hardship, which can be one or a combination of several difficulties such as:

•Loss of or reduction in income
•Death or illness
•Divorce or separation
•Job relocation or transfer
•Military service
•Increased expenses
•Drop in market value (this plays a part most especially if someone were relocating for a job)

Do you qualify?
0 votes Thank Flag Link Tue Jul 26, 2011
Yes, you can short sale this property. You do not need to live in the property to get the short sale approved. The sellers do not live in most of the short sales we close. Feel free to give me a call and I can explain the process to you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Tue Jul 26, 2011
No absolutely not. You will need to demonstrate financial hardship. Your lender will look at your hardship based on your assets vs. debt. The lender will like to know what is the reason why you are unable to continue your mortgage payments?
As a short sale specialist, I have the experience and knowledge to help you successfully complete the process in a timely fashion for free!!!. I have helped a lot of homeowners get rid of their debt and I can help you too!!! Call for free consultation.

Thank you,

Miriam Sandoval, Realtor
Intero Real Estate Services
Direct: 650.248.7903
email: sandavelli3@gmail.com
0 votes Thank Flag Link Tue Jul 26, 2011
As has already been mentioned, you do not need to occupy a property in order to sell it as a short sale.

Our team has successfully sold investment properties as short sales for our clients. The short sale lenders who control the transactions are interested in whether it is in their best interest to approve a short sale. You need to convince the lender that you have a hardship that makes it impossible for you to continue to make your mortgage payments. A hardship is not defined as simple having an “under water” house. The lender granted a loan to you and expects that you will repay that loan. You need to be able to document to the lender who that is not the case.

You should meet with a Realtor (or two or three) to discuss the process and make sure that the Realtor whom you choose is someone with whom you feel comfortable. Short sales take a long time to finalize. You will be working with whatever Realtor you select for – and this is just a guess – six months or so. I have had short sales take two months and I have had them take nine months. Short sales have lots of moving parts. There may be tax and/or loan deficiency issues. You want to make sure, through a meeting with an experienced Realtor, that you understand what you are getting into.
0 votes Thank Flag Link Tue Jul 26, 2011
You do not need to live in the condo to do a short sale. It can be an investment property also to qualify for a short sale. As other agents have mentioned, you need to prove that you have a hardship. You will need to provide the following documents to B of A when you start the short sale process:
• A hardship letter describing the homeowner's situation
• Two most recent pay stubs - or income/expense reports if self-employed
• Two most recent bank statements
• IRS Form 4506-T Request for Tax Return - requesting the past two years

You also need to give an authorization letter to your agent so she or he can negotiate the short sale on your behalf.

I do many short sales and the process is not as difficult as it used to be. If you need my help, please call me at 510-279-9580.

Meena Gujral
0 votes Thank Flag Link Tue Jul 26, 2011
Whether you have a genuine HARDSHIP is between you and BofA:
What I'm going to remind you is that you will be responsible for the property until the Escrow closes, maybe a year from now:
That means you will have to keep Insurance on it and you will be responsible for any Vandalism that occurs.

Good luck
0 votes Thank Flag Link Tue Jul 26, 2011
You can do short sale whether you live in their as your primary home or rented as your investment property, it doesn't matter. It seems like you have hardship since your renter didnt pay rent for the last 6 months. Consult with your attorney or CPA for tax related questions and work with an experienced short sale agent to list and sell your house.

Blaison Samuel
0 votes Thank Flag Link Tue Jul 26, 2011
Hi I do short sales all the time with BofA and all you have to do to qualify for a short sale is have proof that you have a hardship and cannot pay the payment. BofA uses the equator system to process short sales and the process has been refined a lot in the last year. If I can help feel free to contact me....Dawn 510-909-0373
Web Reference: http://DawnRivera4Homes.com
0 votes Thank Flag Link Tue Jul 26, 2011
The lender looks at your total financial situation to make a decision on the short sale terms. We deal mostly with short sales and the trend is such that lenders are now more flexible than before on short sale approvals. You'll need 2 years of tax returns, most recent paystubs, copies of 2 months bank statements (all accounts), etc. Some lenders will also ask for copies of retirement accounts and cash value of life insurance policies. Start gathering these items now and talk to a REALTOR who deals with short sales immediately!
0 votes Thank Flag Link Tue Jul 26, 2011
You do not have to occupy the property in order to short sell. I have completed many short sales for investor clients. Bank of America has become much easier to work with over the past 6 months. If your listing agent prices the condo well and manages the short sale process, you should be able to get it sold.
0 votes Thank Flag Link Tue Jul 26, 2011
Hi HaywardCondo,
You really just need to be able to prove that you have a financial hardship. Occupancy does not necessarily matter.

Sinead McAllister
0 votes Thank Flag Link Tue Jul 26, 2011
I haven't found this to be necessarily true. There are tons of condos in my market and being a resort area, in most cases, the owner does not live in the property. There are so many other variables surrounding a short sale such as purchase agreement price, the market, etc.
0 votes Thank Flag Link Tue Jul 26, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer