I must move due to employment. My house is current but severely upside down. Can I short sale?

Asked by Jesse, Davenport, IA Wed Sep 3, 2008

I've never been late and my credit score is close to 800. However, I must move a few counties north. If I rent, I won't get anywhere near my monthly mortgage of $1300. What are my options to get rid of the home? Unfortunately, my wife and I purchased our home at the top of the market at $236k. We'd be lucky to get $150k

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Jacqueline F…, , Kissimmee, FL
Thu Sep 4, 2008
Hello Jesse,

I work in the Davenport area.
If you would like me to do a CMA for you just let me know.
I look forward to hearing from you.

Jackie Fortier
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Michael Cepa…, Agent, Tampa, FL
Wed Sep 3, 2008
You probably can short sale and you won't ruin your credit and you don't have to be late, but there are definitely other options that I would first try and work out. The first being renting it out and making up the loss each month, next is a loan modification, which is when you or your experienced Realtor or negotiator, speaks on your behalf, and has the payments lowered to a more affordable price. With my clients, this is always the first option and we see where it will take us. If it isn't doable, then we escalate to a short sale situation. There are options that may not effect your credit and I am certainly willing to help, so feel free to contact me. Good Luck
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Keith Sorem, Agent, Glendale, CA
Wed Sep 3, 2008
The issue here is what are your options?
Just because the market shifts does not mean that you desevre a short sale. Normally a short sale is only granted if the owner is destitute financially. That is not you. You just got a new job.

So what to do?

I think you are an accidental real estate investor. If it were me I'd try to re-negotiate my loan. This is called a loan modification and lenders are kind of becoming accustomed to having owners ask.

In any event unless you are prepared to have your credit rating trashed, look in to renting it out. Talk with a local Realtor about market rents and also look into a local manager. I had the same thing happen to me...18 years later we discovered that we made a great choice.
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Mott Marvin…, Agent, Sunny Isles Beach, FL
Wed Sep 3, 2008
Usually a lender will consider a short sale only after the borrower is late 3-4 months and submits the various required documents; hardship letter, financial statements, bank staements, etc. The nxt thing most lenders will require is a bonafide offer from a pre-approved buyer.

Many lenders are approving short sales!
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Steve Javier, , Orlando, FL
Wed Sep 3, 2008
A short sale will be affecting your credit scores. Beware of the easy steps to unload your home. I recommed you purchase at the place of your new employment. A second home qualifier is that the property has to be 25 miles away from your first.
Then unload the property if you can't rent it or sell it.
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Glenn Ginsbu…, , Naples, FL
Wed Sep 3, 2008
Because your home is your primary residence and your hardship is due to a change in employment you should be prequalified as a possible short sale.

You should contact your lender and explain the situation in full. Some lenders will provide you with a package of documents you will need to complete.

You will need to provide in addition to the financial information, possibly a broker's price opinion (BPO) (similar to a comparative market analysis or CMA).

The lender will probably require you to list the home with a real estate agent - be sure to select a real estate agent that does have experience in short sales.

Before you start any of the aforementioned you should consult with a real estate attorney and your income tax advisor to obtain a full understanding of the pro's and con's associated with a short sale as well as any income tax implications.

Real estate agents are not licensed to practice law or income tax preparation.
Web Reference:  http://www.adeltarealty.net
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Cel Durant, Agent, Roseville, CA
Wed Sep 3, 2008
In order to qualify for a short sale (in which the bank agrees to accept less than the amount owed) you must have a hardship. A change of employment out of the area would qualify you so far as the hardship goes. You will need to write a letter explaining the situation, provide financial information and list the property for sale with an agent. It is best to use an agent who has experience with short sales. They are complex and time consuming and there is no guarantee that the bank will accept it. They will not give you an answer until you receive and submit an offer and they often take 60 days or more to respond. It will affect your credit score - although not as severe as a foreclosure. There can also be potential tax consequences. Your agent should be able to explain all of this to you and you should also seek legal and tax advice before proceeding down this road.
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Scott Godzyk, Agent, Manchester, NH
Wed Sep 3, 2008
If you are not late, your bank may not consier you for a short sale. Your best bet is to call the bank, ask for the short sale department. tell them your situation and ask fro a short sale package. Find a realtor who specializes in short sales, not every realtor can do them successfully. Make sure they have successfully completed short sales in the past. it takes lots of time and lots of patience. You will want to get your financials and letter of why you need a short sale into the account manager. The realtor should get the best offer and assist you with all of the paperwork, including a current bpo and net sheet. Good luck Jesse
Web Reference:  http://www.ScottSellsNH.com
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