What are the odds of the bank accepting a short-sale on a home that is current on the mortgage payments?

Asked by Brooke_green, 08619 Wed Jul 8, 2009

We are currently in the process of short-selling our home. We recently stopped paying our mortgage and our credit is already being affected. What would the odds of a short-sale being accepted if we had kept current on our payments?

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Jeanne Feenick’s answer
Jeanne Feeni…, Agent, Basking Ridge, NJ
Wed Jul 8, 2009
Hi Brooke, the bank may wonder "where is the hardship?" if you are able to make your payments. My suggestion is that if you have a circumstance that causes hardship you should contact your bank and begin a dialogue.

Good luck to you Brooke.

Jeannie Feenick
"Unwavering Commitment to Service"
Search the MLS at http://www.feenick.com
Web Reference:  http://www.feenick.com
2 votes
Laureen Coup, Agent, Long Beach Island, NJ
Wed Jul 8, 2009
You do not have to be behind on your mortgage in order to do a short sale. You will have to supply bank statements, etc to show ALL of your assets, and the bank may feel that a short sale is unacceptable at this time. Email my attorney who has done hundreds of short sales Michaeljweber@yahoo.com if you have any further questions. The first person you should contact however is your accountant. Short sales are not in the best interest of everyone.
Good luck
Laureen Coup
Crossroads Realty
(732) 674-7506
2 votes
John Sacktig, Agent, New Jersey, NJ
Sat Jul 11, 2009
Hi Brooke,

Is your home already listed with a Realtor? -or- are you doing this on your own.. big difference. Realtors that work part time do not really grasp the short sale process and get confused. ( hence the daily changing condition statement) Your Realtor will be / should be acknowledged by you to the bank to deal with them on your behalf and all the questions can be answered through your realtor.

But yes, it can still be accepted.. I had a client that owned a property and confided he was "about" to be in trouble with it.. he was nervous, we submitted all the necessary initial paperwork to the bank ( that I supplied outlines for) that stated to the bank (in January) ... as of April 1... I will NOT be able to pay this mortgage any longer and I will default on this loan and here is why...guess what..

We listed, got an accepted offer 100k under list and closed within 39 days. This also has a lot to do with the communication of a Realtor that understands the process and communication necessary to make the transaction happen.

You may want to contact Bill Holt of Keller Williams:
Profile URL: http://www.trulia.com/profile/id/305723
1 vote
Cheryl Dare…, Agent, Sewell, NJ
Wed Jul 8, 2009
I have had several cases where the lender will consider a short sale even if you are not behind in payments. This is becoming more common as banks try to work with sellers. A hardship must be shown and they will then possibly consider.
My team specializes in short sales and bank negotiations. Call or email me if you want to discuss your options further and have questions.
Web Reference:  http://www.DealsInNJ.com
1 vote
Marilyn Bell, Agent, Calabasas, CA
Fri Jul 10, 2009
I have to agree with Jeanne when she says "Where is the hardship?" Did you stop paying your payments to try to get a short sale approved? Even if you stopped paying, but all the financials say you can pay the payments, you may not get the short sale approved. Has the bank already approved your short sale? Have you already turned in all the paperwork (hardship letter, application and required docs - this varies by lender)?
0 votes
Francesca Pa…, Agent, Manasquan, NJ
Fri Jul 10, 2009

This question is best answered by your bank (haa, trying to get a straight answer is not always easy!) or an attorney EXPERIENCED in short sales. Us realtors can provide you with input, but each bank is different and with the ever changing conditions (at times, daily) the info we may provide can be outdated almost daily as our business is selling homes.

Love and Peace,
Francesca, Realtor, ePro
Web Reference:  http://www.PatrizioRE.com
0 votes
Ruth Bonapace, , 07030
Wed Jul 8, 2009
Chances were probably slim, but now you have ruined your credit and could be liable for legal fees.
0 votes
, ,
Wed Jul 8, 2009
Hi Brooke
You should start that dialogue with your lender because it varies from bank to bank. However, like everyone else has said, a short sale is a tool to help banks avoid foreclosing and getting stuck with a property and more often than not it is hardship based.

If you've found a way to keep paying and/or you've got savings or other assets to tap into then most banks are going to try to shift the burden back to you as opposed to taking the short end of the stick

Good luck
0 votes
"MICHAEL" Is…, Agent, Aventura, FL
Wed Jul 8, 2009
Non!! In order to apply for a short -sale you have to be in default of the mortgage at least for three month, and receive a notice from the lender that action is about to be taken against the property.
Then you have to prove that you are unable to meet the minimum requirement payment of the mortgage then apply for a short sale. Procedures can take a least six month or more.
The best for you is try to work things with your bank.


Michael Benichay
Globe Wide Realty
0 votes
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