I live in the Atlanta Georgia metropolitan area. Can I sell my current home short sale, and buy another? Can I work this out with the bank?

Asked by Helpneededatl, 30344 Tue Feb 21, 2012

My home is in need of repair. I have owned it over 20 years, but due to the drop in property values getting loans for repairs would put me even more under water.

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Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Feb 21, 2012
A hardship would be required for a short sale approval. HUD issued an announcement in December 2009 about short sales. It states:

As outlined in the attached Mortgagee Letter, borrowers are not eligible for a new FHA loan if
• They pursued a short sale on their principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference:  http://www.rodneymason.com
1 vote
Adrian Provo…, Agent, Atlanta, GA
Sat Feb 25, 2012
There are multiple plans of action that you can take to settle your situation. I would consult with a reputable real estate professional to discuss your options. Feel free to contact me if you would like expert assistance.

Best Regards,

Adrian Provost || 1-888-901-8421 || mail@AdrianProvost.com

Real Estate Specialist (Provost Real Estate Group)
Real Estate Agent (PalmerHouse Properties)
Real Estate Consultant (Kingdom Builders Financial Group)
Real Estate Appraiser (Provost L&E, LLC)
Web Reference:  http://www.AdrianProvost.com
0 votes
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Wed Feb 22, 2012
Wow! I'm shocked that no one gave you alternatives. I'll give you one here. The other by phone. Email me your phone number or call me.
We can check to see if home repairs would increase the value of your home enough to bring it more than owed or close to it. A 203k loan FHA allows unlimited repairs to a house. You can add another story or 2 rooms and a bathroom. You can redo the kitchen and bath and the floors. My house is upside down by 10,000. I did the same loan and added an architectual roof ($4500) plus 1 room and half bath. I'm on a small lot so not much room to expand. I spent 10,000 and increaed the value by $17000. Just enough room to sell it as is, pay Realtor fees and closing costs. Now, my wife doesn't want to move - LOL!
0 votes
Joan Shorter, Agent, Atlanta, GA
Wed Feb 22, 2012
I am a Real Estate Broker in East Point, so know the market well. All of the above info is very accurate. When you sign a new mortgage you affirm that you have satified in full any other loan, which a short sale does not satisfy your loan in full. A short sale will negatively affect your credit too. And, since you will need money for a downpayment, why don't you put that money into your home repairs? Perhaps you need help in prioritizing projects and getting references on affordible contractors.
0 votes
Glori Kloda, Agent, Cumming, GA
Tue Feb 21, 2012
Unfortunately, It's going to take a few years to be able to qualify for a loan after a short sale. If a short sale is something you are considering you should start looking at rental properties to live in for a few years.
0 votes
Gwen Harvey, Agent, Atlanta, GA
Tue Feb 21, 2012
I am trained as a Certified Distressed Property Expert and I specialize in short sales. Whether you have a hardship or not, the best thing is to get in contact with your lender to see if a short sale can be approved without a hardship. There are some instances where a lender may accept a short sale without a hardship, but the borrower may have to come to the closing table with funds. To know for sure whether they will or will not approve your home as a short sale check with them first and explain your situation to see what the answer is. This will give you more information to base your decision on what to do. As far as purchasing another home after a short sale, it normally will take a person at least 2 years to purchase again. If it forecloses, it will take up to 5 years to purchase again. If I can be of further assistance, please let me know. I wish you the best.

Gwen Harvey
Solid Source Realty GA
770 475-1130 Ext 6104
Web Reference:  http://www.gwenharvey.com
0 votes
Fred Yancy, Agent, Woodstock, GA
Tue Feb 21, 2012
HUD recognizes the following situations as valid hardships and justification for default:

â– Death of principal mortgagor
â– Death of mortgagor's family member
â– Illness of principal mortgagor
â– Illness of mortgagor's family member
â– Marital difficulties
â– Curtailment of income
â– Unemployment
â– Excessive obligations
â– Inability to sell property
â– Job Relocation
â– Property problem (roof leaks, construction litigation, etc.)
â– Incarceration
â– Inability to rent property
â– Military Service
â– Casualty loss (such as a Hurricane, etc.)
â– Energy-Environmental costs
â– Servicing problems
â– Payment adjustment (ARM Adjusting)
â– Payment dispute
â– Transfer of ownership pending
â– Fraud
â– Abandonment of property (due to condition of property, for instance)

It is important to keep in mind that some scenarios may meet these criteria and yet not be viewed favorably by a lender. Additionally, the more proof of the hardship which a borrower is able to produce, the better.

Just this week, I closed a home that was a short sale and the owner bought a new home. The qualifications for buying a new home remain the same, good credit rating, no late payments, ability to pay etc. The key is to buy the new home before you close on the short sale.
0 votes
Sally W. Ham…, , Atlanta, GA
Tue Feb 21, 2012
You asked two questions. One about the short sale. As others have stated it has to be a hardship. You and your current lender are the ones to determine if the short sale will be allowed.

The second question is concerning a new purchase. Unless you are going to pay cash, you will not be able to get a new mortgage for about four years.

Sally W. Hamby
Senior Mortgage Banker
Fidelity Bank Mortgage
404 644 7696
NMLS @35143
0 votes
Elizabeth Wa…, Agent, Atlanta, GA
Tue Feb 21, 2012
Hi Helpneededatl, thank you for your inquiry. I would be pleased to assist you, please email and/or call the contact info below.

I look forward to your reply and to helping you.


Elizabeth 'Beppy' Walton
C/404 234 9418
0 votes
Laquita Baez, Agent, Atlanta, GA
Tue Feb 21, 2012
usually in order to be approved for a short sale from your bank, you would have to prove a hardship, for example a job loss, reduction in income, job transfer,etc. it would be difficult to get approved for a short sale without expressing a hardship of some kind.... Being underwater or upside down on your mortgage may not be enough...
Web Reference:  http://www.LAQUITABAEZ.com
0 votes
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