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
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 firstname.lastname@example.org. 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!
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...
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. .
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.
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, REALTORÂ®
CDPEÂ®, HRCÂ®, HAFAÂ® Certified
"SAR Masters Club Member 2012"
Mathews & Co. Realty Group
@ Century 21 Landmark Network
(916) 370-1803 cell