Home > Blogs > Melissa Zavala > Melissa Zavala: San Diego County Broker, Speaker, Author

Can I Sell in a Short Sale With No Hardship?

By Melissa Zavala

Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

June 17, 2011 05:53 PM

Hardship Letter Dear Melissa:

I was unemployed for 14 months and could no longer wait to find employment in the Riverside area. As a result, I took a position that required me to relocate to the east coast. After 3 months on the job and seeing that everything is going well, I would like for my family to relocate to the east coast so that we can get on with our lives and be together. Do you think that the bank will accept a short sale now that I am employed again? –Temecula Short Sale Seller

Dear Temecula Short Sale Seller:

First of all, congratulations on finding a great job during such difficult times. I’m glad to hear that you are now employed again. You ask a great question, which boils down to this: I had a hardship. I may not have a hardship anymore. But, I need to do a short sale.

And, yes, you do need to participate in a short sale. Lots of individuals who participate in short sales do so not because they have a hardship (such as illness, divorce, job loss, decrease in hours of employment) but because of a need to move (job relocation, military deployment, etc). Sometimes the short sales with little hardship take extra time to complete, but most banks do understand that there are specific individuals that may really need to sell their homes now—despite the fact that it is not an ideal time to do so.

The key is to work with an agent or short sale negotiator who has participated in lots of short sales and has contacts at the banks—just in case the file is not being processed quickly and efficiently. If you have any questions or want to discuss your situation further, please do not hesitate to contact one of the qualified agents at my office. --Melissa

Re-Blog

Comments(22)

Comment

Show All Comments

Sort:

Steve Davis

Davis Coastal Properties - Carlsbad, CA

Carlsbad CA

We need to remember that a possible foreclosure is going to be a hardship for the bank! So - shortselling your house is helping the bank out of a future hardship.

Jun 17, 2011 06:04 PM

David Dee

RMX REALTY - Alhambra, CA

Real Estate - San Gabriel Valley (L.A.) & N. Orang

Melissa, great Q&A. Nicely answered as well. :D

Jun 17, 2011 06:06 PM

Tony & Darcy Cannon

Aubrey and Associates Realty - Layton, UT

The C Team

Melissa, This is a great post, it shows how much education many sellers in a position like this really need. Very well done, thank you for reminding us how important it is that we educate our clients on issues like this!

Jun 17, 2011 06:20 PM

Tim Lorenz

TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA

949 874-2247

Short Sales are unique to the individual's set of circumstances.

Jun 17, 2011 06:38 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Looks like the kind of question that we see frequently on Trulia.

My own brother went through a short sale in Temecula. Although he had a steady position, he couldn't sell his house for what he paid for it. This being a military relocation, he had no choice. And yes, that is considered a "hardship".

Good luck

Jun 17, 2011 07:09 PM

Hosai Nasir

Century 21 M & M and Associates - Cupertino, CA

wow this is the kinda question we will see more and more of.. but I think it's a hardship. THank you for sharing this informative blog with us.

Hosai Nasir

Jun 17, 2011 07:16 PM

Fernando Herboso - Associate Broker MD, & VA

Maxus Realty Group of Samson Properties - Clarksburg, MD

301-246-0001 Serving Maryland, DC and Northern VA

I guess the ultimate person that decides this is the lender. . .

Jun 17, 2011 10:27 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Melissa. My only criteria anymore is a seller willing to go through the process and able to participate in the loss if they have no hardship. My last 3 approvals were with folks current on their payments and 2 of those had no hardship at all. The 3rd one is moving out of State. Only one of these was required to make a cash contribution and that's only due to very high income and the property being an investment property.

So you response is purrrrrrrrrfect!

Jun 18, 2011 12:08 AM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Melissa

Great response to a tough question but one that likely is being asked by many - I know of several who may be in that very situation soon.

Jeff

Jun 18, 2011 12:23 AM

Shannon Coe

exp realty of California, Inc. - Oceanside, CA

760-586-5268, San Diego Realtor

One great thing that this economy has taught me is that you are never stuck..you can always negotiate when life changes.

Jun 18, 2011 03:40 AM

William J. Archambault, Jr.

The Real Estate Investment Institute - Houston, TX

I must have missed something. A 2,000 mile commute or two house payments sounds like a hardship to me!

Bill

Jun 18, 2011 05:33 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Having to relocate is a hardship in itself. However, I do have a seller right now who moved to Alaska and ASC just denied his short sale because he has the ability to make the payments. Hello? He is living in Alaska! The short sale is in Sacramento! We are resubmitting.

Jun 19, 2011 06:05 AM

Vickie Nagy

Coldwell Banker Residential Real Estate - Palm Springs, CA

Vickie Jean the Palm Springs Condo Queen

Really great post! I am so glad to see that you made if available for a re-blog. I just posted it on my blogroll.

Jun 19, 2011 07:53 AM

Sarasota & Manatee Counties FL

SaraMana Properties - QuickFreeMLS.com - Bradenton, FL

QuickFreeMLS.com - Listings In Paradise

Good info and I enjoyed reading the post! Thank you for sharing it!

Jun 19, 2011 08:48 AM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Like BB mentions there are plenty of short sales closing without an actual hardship!

Jun 19, 2011 09:57 AM

Harry F. D'Elia III

WEDO Real Estate and Beyond, LLC - Phoenix, AZ

Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is best to consult an expert when considering a short sale along with a lawyer and CPA to completely understand ones choices.

Jun 20, 2011 01:44 AM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

I have had two people that income wise didn't qualify for a short sale, but because of relocation and not having the cash to pay off the difference between what the house was worth and what they owed were granted short sales. Most banks do understand that it is easier to do a short sale than go through the foreclosure process if the owner stops paying.

Jun 20, 2011 03:55 AM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

I got a call tonight from a lady that need to do a short sale, they are in a condo which they bought before they had kids and now need 3 bedrooms.

They are current, but the condo has negative equaity of 50K.

Two loans, I went over this about the promissory note etc...

Any suggestions?

Jun 24, 2011 03:41 PM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

Missy: I've seen a few sellers like this whose hardship is that they need to move but cannot rent their place for the amount of the mortgage payment. Could that work in your situation?

Jun 26, 2011 03:20 AM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

I am going to have him write a proposal to the 2nd lien holder, giving them an offer.

Because if it sells in Foreclosure they would only get 1500 to 3000.00. A co-worker did that and they took back a promissory note of 1/2.

I'll let you know how it turns out.

Jun 26, 2011 07:33 AM