You have a client who bought a house with less than 5% down a couple of years ago and now they need to sell.  It may be very likely that they now owe more on the property than it is worth in today's market.  "No problem" you say "We'll just look to do a short sale." 

Hold on!  You may be missing the essential elements that will qualify your client as a candidate for a short sale.  It is not enough just to be "upside down" on a property, you must also qualify as a hardship.  If you owe more on a property than it is worth BUT still have the ability to make the payments (and in fact are current on the payments) your lender will probably not agree to a short sale.  The condition of hardship is usually demonstrated when a person loses the ability to make payments (lay off, illness, financial loss) and is at least three months in arears.  If your client's profile does not contain these elements, they probably will not be a candidate for a short sale.  In fact, they may simply be somebody who made (what is now) a bad deal and is stuck with it.

 
Posted by Bill Fiore on 04/28/2008 07:42 PM   Comments (2)   short sales, upside down, hardship  
Generate short URL

The good news is…
03/13/2008
share
Despite the gloom and doom of the nightly news reports, there are several bright spots in the real estate market, one of which is below. This is a GREAT time for first time home buyers They do not have to sell a home in order to buy. The large… more
Fear Factor. It's not just a Game Show!
03/09/2008
share
There is (or was) a reality game show called Fear Factor. It gathered together a group of contestants and the host challenged them to a series of risky tasks. The contestants were eliminated one at a time until the winner was determined. The new… more
Teamwork - the key to successful transactions
02/29/2008
share
Everyone has heard the horror stories of transactions that failed for any one of many reasons. Financing did not get approved, inspections went bad, the buyers or sellers circumstances changed or an issue developed that could not be resolved. One of… more
Get off of the bench and into the game!
02/01/2008
share
"Put me in Coach! I'm ready to play! " As a former high school football coach, I heard those words from eager, young athletes many times. As a real estate agent in Springfield, MA I rarely see this type of enthusiasm from prospective… more
Real Estate and the Twenty Dollar Dinner
11/04/2007
share
What does real estate have to do with a twenty dollars dinner? Let me tell you a story. In my hometown a new restaurant opened up. The opening was eagerly anticipated in the community because this management group had sister restaurants in a… more
 

Bill Fiore

Springfield, MA

More about me…

William Raveis Real Estate

Address: 36 Center Square, East Longmeadow, MA, 01028

Office Phone: (413) 565-2111

Cell Phone: (413) 726-9405

Email Me



Links

Archives

RSS 2.0 Feed for this blog