This is a question that I have been hearing more frequently and the ANSWER IS YES! Let me share the following 2 scenarios:
1.) Sellers had their second child and needed a larger home and wanted to be in a better neighborhood to raise their family. They puchased a nice home in a great neighborhood and a few months later decided that a short sale was their best option in regards to their first home. They owed over $200,000 between 2 lenders and the house was worth less than $100,000. I listed the house for sale and submitted an offer of $75,000 to their 2 lenders for approval. Now keep in mind that the sellers did not have any decrease in income or financial hardship other than owning 2 homes. 1st lender agreed to short sale and release seller from any deficiancy or liabilty if they agrred to a interest free promissory note to be paid over 8 years ($104 / month). The 2nd lender agreed to release deficiency and any liability for $5000 cash contribution at closing. Seller were able to be released from all liability and sell house for $125,000 less than what was owed for $15,000!
2.) Sellers bought a house for $175,000 and paid cash. Less than 6 months later they decided to short sale an investment property. They have not experienced any economic hardship what so ever other than trouble renting the house out and having a tenant trash the house. Short Sale was approved by their lender for a purchase price of $95,000 (sellers owed $135,000). Lender approved short sale and released seller from any deficiency or liability and did not ask for any cash contribution or promissory note!
We are getting short sales approved for families who thought they would not qualify. You would be suprised what the banks will accept in a short sale. Please keep in mind that every situation and every lender is different.
Steve Capen & Associates with Keller Williams Realty has helped many families throughout the Tampa Bay Area. Please call or email for a free consultation on the short sale process and remeber that your lender will pay the commissions and closing costs!
Keller Williams Realty