Yes, you can do a short sale on an investment property. I've a Realtor but also an investor and have made several offers on short sales that weren't the owner's primary residence. Please keep in mind that a short sale can be a very long process. Even after you receive offers, it can take up to 6-9 months for the lender to come back with an answer. If you are behind on your payments (or not making any payments), the property could actually foreclose before you can make a short sale. I would contact your lender on Tuesday and get information from them on starting the process now.
Bette Butz Realty, Inc.
If you are upside-down on your investment property, I would recommend that you contact a realtor who specializes in â€œShort Salesâ€ and list your property today!
Keller Williams Realty
Direct (916) 359-6596
Even more so when they see that all your properties are being considered for a short sale.
Just be sure you have some with experience doing this. .it is a long process
We have found the banks will only work with you if you are in distress - job loss, illness, transfer ect. They'll want proof that you have tried to sell the home, they'll also require a very detailed financial statement and they'll do nothing till you have an offer to purchase. And as said before it can take months to get it approved.
The market has caused many to be upside down but we suggest riding it out instead of ruining your credit. Find a good tenant to help recoup some of your payment. We own several rentals and watched our equity slip too, but found tenants anyway. Now everytime a tenant makes a payment for us we build equity and get a tax right off.
The market will turn just give it time.
Realty Executives e-Group
If you have retirement funds, I suggest seeing if this would allow you to take out or borrow funds without penalty. A tax professional, CPA, or real estate attorney would be able to give you a good answer and advice.