Most home owners do not qualify to sell their home for less than what they owe the bank, as a short sale. This is due to most home owners not facing the hardship needed for the bank to accept that both parties are taking a loss, and the best solution is to do the short sale and move on. Writing and documenting a letter of hardship is usually a difficult and emotional experience for the home owner.
Generally the hardship is due to a combination of:
- Employment Status changes the families earning power. Whether it is a result of downsizing, out sourcing, transfer, dropping a product line, or merger cost cutting measures. Has transportation, health or injury resulted in your job changing.
- Additional unplanned drains on income and assets. This could be the result of death, illness, or other family issues.
- Divorce splitting the joint assets.
- Adjustable rate mortgage resetting the payments due, to more than the family can afford even with spending savings and investments to make payments.
- Military Call ups receive good treatment with some lenders.
These are the most common. Others are reviewed on an individual basis. Situations involving wind, floods, earthquake, etc involve the bank knowing that if they take the property from you, they may not be able to resell it to get anything toward what you owe. Many things may change the value of the neighborhood that could make the property worth less than what you owe.
If you are merely trying to save money a short sale will not work. When your cash, savings, investments, and paycheck allow you to meet the responsibilities of the family and to the mortgage, pay the bank.
If you see your situation changing to an extent where you may miss a payment call me. I can discuss alternatives and offer ideas. In many cases I will refer you to a professional such as CPA or attorney as appropriate. If your life is changing it is never too soon to find out if there is a better path available.
Contact:
Dwight Puntigan - Century 21 Luetkenhaus - 636-219-6242
To view St Charles, St Louis, and Eastern Missouri listings go to
http://dwightpuntigan.point2agent.com/Popular_Searches/page_203587.html
http://dwightpuntigan.point2agent.com/Search_MLS_Listings/page_203592.html
When you consider selling your property, talk to me about listing your home and whether it is a short sale, could be wholesaled, or is a retail sale.
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Hi Dwight, In far too many cases the media makes it sound like a short sale is an elective option ! When they speak to the lender and find out basically what your excellent post outlines they are in somewhat of a shock !