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My1stsadz, Home Owner in Murrieta, CA

Short Sale due to Relocation

Asked by My1stsadz, Murrieta, CA Thu Nov 25, 2010

If a homeowner is being relocated out of state is that a legitimate hardship for a short sale.

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11
Hello My1stsadz, Happy Thanksgiving! Yes, that is a valid/legitimate hardship for a short sale. I've successfully helped relocation clients with short sales. Let me know if you have any other questions. I know there is a lot of confusion out there when it comes to short sales. Before listing your home for sale, ask the agents to provide a minimum of three short sale approvals. You want to make sure they've completed them successfully before. You don't want anyone practicing on you. Make sure you understand any tax consequences. Part of my team are CPA's /Enrolled Tax Agents and Real Estate Attorneys. We all offer free consultations.

All the best!

Ryan Smith
Lic # 01334440
951.595.7490
http://www.ryansavemyhome.com
http://www.theshortsaleminute.com
2 votes Thank Flag Link Thu Nov 25, 2010
Yes, Relocation is a legitimate reason for short sale. Some conditions exist, but an Agent with Short Sale experience will be able to get this done.

Make sure you have whatever agent you choose to help you sell your home can provide you with documentation to prove their experience. There are plenty of "experts" who attended a seminar once and sold one short sale last year...
1 vote Thank Flag Link Tue Dec 13, 2011
A job relocation is not a reason for a bank to agree to a short sale unless the relocation is the cause of a hardship that makes it impossible for you to maintain the mortgage on the home from which you are moving. In other words, if you are being relocated to a better job with better pay you may not have a hardship. You need to sit down with a local real estate professional who has had short sale experience for a consultation. I recommend someone who is a Certified Distressed Property Expert (CDPE) because of the additional training in short sales that a CDPE receives. If you have a legitimate hardship, an experienced professional can refer you to the proper tax and legal resources for guidance and can also help you to sell your house as a short sale if that is the best path for you.
1 vote Thank Flag Link Thu Nov 25, 2010
Short Sale Due to Relocation,

Legitimate? Yes.
Allowable? Possibly, but not for sure.
You will not know until you list the property, get an offer of market value, and submit it to the lender for an approval.

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 Jun 26, 2012
A job relocation can be a hardship. However, keep in mind that the bank will make the final decision based on whether it is more profitable for them to allow a short sale or let the home go into foreclosure. They will make the decision based on that alone since at the end of the day minimizing their exposure on the investment is of utmost importance.

Do not expect your lender to take the moral high ground in any case. In the current economy, the financial impact of these banks, corporations, and investors trashing the economy has been our burden, not theirs. Quite frankly, the homeowner needs to do what is right for their family and what makes the most sense in terms of their ability to put food on the table. An obligation to a bank comes in a distant second...
0 votes Thank Flag Link Mon Jun 18, 2012
I have personal experience with this! Yes, a work related relocated is a ligitimate hardship. However, you will need documention from your employer and I would strongly recommend working with an agent that has experience with short sales that maintains strong line of communication with your lender. I believe it's based on mileage...I think it's 300 miles.

Please call me if I can provide further assistance
0 votes Thank Flag Link Fri Apr 15, 2011
If you're working with an experienced short sale agent with a track record of success, this is unlikely to be a concern.

Cameron
SoCal Short Sale Agent
0 votes Thank Flag Link Sat Nov 27, 2010
my1stsads,

Recent laws passed have provided some help to people who move around. If you short sell and move a long distance away you are sill elgible for an FHA loans. Relocation may be grounds for a short sale (the alternative of course is that you dont move and lose your job then you have a real hardship). I'd start by calling the bank and ask what their policy is.
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Fri Nov 26, 2010
You would certainly hope that banks are in a position to help or cooperate in a short sale for those who need to relocate because of the employment or lack of employment. Unfortunately my experience has been just the opposite the bank would not consider a short sale until the borrowers were sufficiently behind in their payments. In my opinion this is a travesty. Some sellers can't sell a home for what they paid for it or let alone what they owe and the banks will not help them though a short sale until the ruin their credit. I have heard rumor that this will change so contact your lender. Good luck
0 votes Thank Flag Link Thu Nov 25, 2010
Yes, relocation is a legitimate hardship.
you might find this link helpful:

http://makinghomeaffordable.gov/hafa.html
0 votes Thank Flag Link Thu Nov 25, 2010
Yes. If your employer is transfering you 100+ miles away that would be a legitmate hardship. Check with your lender of course because they have the last word on the matter.
0 votes Thank Flag Link Thu Nov 25, 2010
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