Do I need to have late payment to be approve for the short sale?

Asked by Jennifer, 60611 Tue Apr 13, 2010

I would like to seek for your advice to let me know if I need to go late in order to be considered for short sale.

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Jim Holder, Agent, Rolling Meadows, IL
Tue Apr 13, 2010

To simplify it, it comes down what hardship you may have, your ability to pay and what other assets you may have. Also, consider that you may qualify for a loan modification.

To qualify for a short sale, homeowners must fall into any or all of the following circumstances:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

For more information, see link below
2 votes
Santiago Ken…, Agent, Chicago, IL
Fri Aug 2, 2013
You dont need to be behind on the mortgage or with a late payment to do a shortsale !
I can give you the cell of my past client he did a short sale with no late payment and ended with good credit buying a house
1 vote
Greg Zajdel, Agent, Arlington Heights, IL
Thu Oct 18, 2012
nope.if you are divorced, co-borrower died, medical issue and job relocation -----you CAN be current !
0 votes
Kawain Payne, Agent, Seal Beach, CA
Sun Oct 14, 2012
In most cases you may not have to be late or behind on your payments if you can provide documentation that proves a true financial hardship.

Get together with your agent and work on a hardship letter. Make sure and send documenation to support tthe claims in your letter.

Much to Success to You!

Kawain Payne, Realtor®
0 votes
Michael Vrie…, Agent, Chicago, IL
Fri Sep 7, 2012
It really comes down to your hardship approval, however the missed payments is a strong indicator for the bank.

These are important questions you are asking though, and the wrong decision really could cause havoc on your financial future.

Reach out to the wonderful experts at Home Solutions. Nobody knows shortsales better then them :

Good luck!

0 votes
Erik Sachs, Agent, Chicago, IL
Sat Jul 28, 2012
Which bank currently holds your loan?
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Jose Hernand…, Agent, Chicago, IL
Wed May 5, 2010
All of the lenders work and have different guidelines, but in some cases if your loan meets the criteria and you can proof future hardship you do not have to be late. What I mean by future hardship, if you lost your job and currently making payments out of your savings and the savings will only go so far. Talk to your bank most of them prefer to help you with a short sale instead of modifying your mortgage.
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Jim Luby, Agent, Barrington, IL
Wed Apr 14, 2010
Jim is spot on below. We close plenty of short sales where borrowers haven't missed payments. However, it is usually easier to demonstrate hardship when a borrower is in default.

For more info on short sales:
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Jason Peebles, Agent, Austin, TX
Tue Apr 13, 2010
Every lender has different requirements when it comes to a short sale. What I would suggest is that, if you feel you need to conduct a short sale, you contact your lender and describe your situation to them. If you are experiencing financial hardship, explain that to them. Let them know your whole story. Get their advice on what you should and should not do in order to have a short sale. Also, I would enlist the help of a local Realtor specializing in short sales and foreclosures. You are going to want to have someone on your side that has dealt with this kind of sale before, because they can be tricky. I would suggest never going late on any payments, but again, ask your lender. Going late on a payment may just in fact be a requirement of theirs in order to conduct a short sale and if that is the case, and there are no other options for you, then that is what you should do. As I have stated, I would suggest you hire a local Realtor that has the experience to deal with these sales. It can mean a world of difference. Good luck.
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