Jason Ewing, GRI/CNS
Coldwell Banker Triad, Realtors
Committed to Your Success !!
919-931-0260 Cheryl Wilder, Coldwell Banker Advantage, Wake Forest, NC
Short sales normally require a hardship, and you do not have one.
There are many people in your situation.
Either stay put, or move and rent it out. Caution, talk with your CPA regarding the tax implications while it is an active rental property and what happens when you sell.
This could be a good thing for you. See my profile.
It is not correct that you have to be behind on your payments to the bank. I have done a large number of short sales in the last few months where the payments are current, and the sale has closed without the seller missing a payment. I can explain the reasons why you would want to keep your payments current.
If you want get an encyclopedia of information on short sales, go to http://www.CreateAShortSale.com . You will get a full guide to the process.
Feel free to give me a call at 919-812-5111 or email tim@TimBurrell.com . As you can see from the answers, there is a wide range of experience and understanding of short sales. You deserve someone who has been doing them since 1992 and who teaches the other Realtors to do them because there are a large number of pitfalls to the process that you need to understand before you proceed. I will tell you all the advantages, and all the reasons you would not want to do it, because you need a counselor who will put your best interest ahead of whether they make a commission or not.
Every situation is very different so it is hard to give you a general answer to your question. I can say this though, you do have options. Selling your home as a "short sale," is one of the options. The first step to qualifying for this is to contact your bank (or banks if you have multiple loans on the property), let them know that you need to sell your home and that you will be "short" on the payoff amount due to the value of your home depreciating over the last few years. They will most likely direct you to their website where there is an application to complete for selling your property. There will also be a list of documents they will request in addition to your application that will help them evaluate your financial situation. A loss mitigation negotiator will be assigned to your file. Once you have an executed Purchase and Sale agreement on your home, the negotiator will then process your request for a short sale.
If you decide to go this route, be sure to work with a Listing Agent who is experienced in Short Sales. The Listing Agent will be the person working on your behalf to get your short sale approved. They will need to work many many hours pushing your contract through, as well as keeping the buyers informed and hopefully on board with waiting for bank approval. Short sales typically take 2-3 months to process once you have a contract.
There are many more details to answering your question...but hopefully this helps get you started. If you would like to talk directly with me about this, please feel free to call or email me. 770-596-5965 or Melanie@TheGurleyTeam.com.
Best wishes to you. Please know that you are not alone, most sellers today are facing these same difficult questions.
Our office specializes in working with Short Sale clients and would be happy to answer any of your questions. Each situation is different and each bank has their own terms. Please feel free to contact me trhough Trulia or call to discuss your specific situation.
You may also want to consider leasing the property. Offering the property on a "Rent to Own" basis may attract better lease clients and you have some hope of a sale in the future.
Hope this helps.