Home Selling in Sacramento>Question Details

Cahomes2005, Home Buyer in San Mateo, CA

Short sale of one property from multiple single family homes

Asked by Cahomes2005, San Mateo, CA Tue Apr 9, 2013

When one investment property mortgage hard to pay due to reduced income can we go for short sale? What would be consequence when other properties are above water.

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9
You certainly are getting quite a mix of answers from real estate agents. My strong advice to you is to first seek LEGAL advice at this time before you do anything else. By asking the question here it shows me that you are at this time seeking good advice and that is a smart thing to do.

I am a licensed California attorney and also a real estate broker and I specialize in helping people just like you.... and the best news is that if I handle your short sale it's doesn't cost you any money and you have an attorney on your side every step of the way.

I have worked with many property owners who have multiple properties - some with equity and some upside down. I would happy to give analyze your situation and explain all your options and most importantly I will explain the legal consequences of your options.

Please be careful in talking to anyone who can't give legal advice or who doesn't recommend that you seek legal advice. Almost all your current options have legal consequences that must be explained to you by a licensed lawyer. No one else can give you legal advice and right now that is exactly what you need.

Please call me to discuss. thanks TED
916.442.6400
1 vote Thank Flag Link Wed Apr 10, 2013
Good question for an Attorney and CPA
0 votes Thank Flag Link Fri Jul 19, 2013
If you own Investment properties you are able to request a Short Sale. The bank will treat it (qualification wise) like they would any other Short Sale they are reviewing but some financial assistance options (HAFA Relocation Funds) may not be available. This is where you want to have a consult with my local Real Estate Attorney who has meet with all my Short Sale Sellers to go over all their questions and concerns. This will give you an opportunity to meet with a NEUTRAL 3rd party who only has your best interests in mind to make sure the best option for your individual situation is found.

Also note that all commissions paid in a Short Sale will be part of the current mortgage servicing banks closing costs and that these Short Sales will typically result in low to no out of pocket expenses for the Seller.

If you prefer to have a more private conversation you can send a private message here or via email to eddie@bhrparkplace.com. I have closed several transactions in similar situations and would like to give you the information that the banks do NOT want you to know about!

DRE#01324382
0 votes Thank Flag Link Fri Apr 12, 2013
Have you checked the values of the property recently? You may be in better condition than you think. Contact me if you would like help figuring out the the value of your property.
0 votes Thank Flag Link Wed Apr 10, 2013
It's rather disheartening to see conflicting information among the professionals in the industry. Please keep in mind the majority on this thread are expressing, based upon their experience, that a financial hardship will be key. The very definition of a short sale and your lender allowing it to sell includes a financial hardship. If a property sells as a short sale without a financial hardship that is a rare exception and not the rule.
0 votes Thank Flag Link Wed Apr 10, 2013
CaHomes...

I think you've had some good answers already, however how do you know for sure your property is underwater...?

Have you had an agent do a comparable market analysis for you recently...? You might be surprised of your investment property's value.

I hope this helps...

Make it a great day...
0 votes Thank Flag Link Wed Apr 10, 2013
Hi San Mateo! I am a CA expat now living in Florida,

If your total debts are larger than your total assets you have a hardship. I would guess the lender wants to know your cash flow. If you have enough coming in to subsidize that particular property your lender might not want to go for a short sale. The first step is to call them and find out. The lender is interested in 2 things. 1: Is this a hardship and 2: What is their net in a short sale.

Get advice from a foreclosure attorney, a CPA and an experienced short sale Realtor in your area. After getting their feed back don't be hesitant calling your lender to see what their stance is. Not all lenders (loans) are the same. It depends who the investor is and whether there is mortgage insurance etc. .
0 votes Thank Flag Link Wed Apr 10, 2013
The first criteria is having a hardship. The second challenge is to clearly articulate your financial condition with all assets and liabilities, then the third criteria is who is your 'investor'. You work through your loan servicer to present the complete short sale application package which they then present to your investor. Only the investor can make the final decision of whether they will approve a short sale.

I am questioning whether you are trying to short sale because of value rather than a cash flow issue. I say that based on your last question of 'other properties are above water'. Please understand that an investor seriously considering a short sale is NOT about a value being underwater. (If you wait long enough the value may improve.) Rather an investor will consider a short sale when you cannot perform on the commitment to pay the mortgage. That's two different things entirely.
0 votes Thank Flag Link Tue Apr 9, 2013
Hello,

With a short sale, your lender is looking for your inability to pay due to a financial hardship. You would need to be able to prove that you can no longer afford the mortgage. I don't believe that your additional properties would be taken into consideration. I could be wrong. However, I speak from my own personal short sale experiences. I have helped clients short sale investment properties because they were able to prove financial hardship - something in their financials had changed from the time the borrowers first qualified for the loan to current.

Ultimately the decision is your lender's (the investor's). My advice, if you can prove hardship, is to give it a try. You have a 50/50 chance.

Hope that helps.

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
"SAR Masters Club Member 2012"
Mathews & Co. Realty Group
@ Century 21 Landmark Network
keisha.mathews@century21.com
http://www.SheSoldItForMe.com
(916) 370-1803 cell
lic#: 01439130
0 votes Thank Flag Link Tue Apr 9, 2013
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