Home Selling in San Mateo>Question Details

Linda, Home Seller in San Mateo, CA

I am thinking of a short sale since my rental house is underwater. Can I qualify for it if I have saving of $40k and retirement account $38k?

Asked by Linda, San Mateo, CA Sun Oct 9, 2011

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8
Ana Fonseca Janof’s answer
Why do you want to sell if you are renting the property? Are you collecting enough rental income to pay for the mortgage every month? If yes, then I advise to hold on for a while. The Obama administration announced that it would adjust the so-called Home Affordable Refinance Program, or HARP, to make it easier for borrowers to refinance their mortgages, regardless of how much their home values have dropped. Hopefully, in the near future you can refinance at a lower rate and keep your home. If you are still considering doing a Short Sale, you will have to qualify with your lender to sale. This means you have to show a hardship -- loss of income, medical reason, divorce, unemployed, divorce..

I hope this helps, Linda!
1 vote Thank Flag Link Mon Oct 31, 2011
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013
The short answer is no. Short sales are only for primary residences and even then if you have assest you would not be approved for a short sale.
0 votes Thank Flag Link Fri Nov 9, 2012
A house being underwater alone does not qualify for a short sale.

To qualify you will have to prove financial hardship to your lender(s). You will be required to submit your income tax returns, bank statements, paycheck stubs, expenses, etc. Initially, your mortgage expenses have to be over 31% of your total income. Retirement is not considered. However, your $40K in savings will work against you in trying to qualify for a short sale.
0 votes Thank Flag Link Fri Nov 9, 2012
Linda,
Retirement is not considered. However the 40,000 in savings is.
if it were down to around 5,000 it may be better.
Banks make decisions on short sales and they are not consistent.
Doing a short sale is always a TRY situation.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@southerncaliforniashortsales.org
http://www.southerncaliforniashortsales.org
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Tue Oct 11, 2011
You may have difficulty showing hardship with $40,000 in the bank. Just being underwater isn't justification for a short sale.
0 votes Thank Flag Link Mon Oct 10, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Hi Linda,

You have to prove financial hardship to your lender(s). Your lender(s) will require you to submit your income tax returns, current bank statements, paycheck stubs, expenses, etc.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun Oct 9, 2011
Every lender is unique, you will not know untill you try!
0 votes Thank Flag Link Sun Oct 9, 2011
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