Seattle-Tacoma, WA "If we are not behind on our mortgage but can't sell our home through a normal sale because we don't have any equity, can we still qualify for a short sale?
We would like to sell this property and get another property where we are not upside down. Thank you!” asked Brent.
Here was our answer. Brent, there is actually a federal short sale program that encourages what you would like to do. It is called the FHA 4155 loan program.
It allows a person that is short selling their house to buy another one right away. However, there are a few caveats.
We have been told that you will need the following. (Guidelines can change at any time, so make sure you check them with a Mortgage Professional familiar with the program.)
A. A 640 FICO credit score or better.
B. You must be current on all installment payments and on your mortgage.
C. No bankruptcy or foreclosure on your credit in the last 7 years.
D. The home you are purchasing must be inferior to the one you are selling. I don’t know the exact guidelines, but I think it means it is a smaller home, or it has less bedrooms or a lower price.
E. You will need the 3.5% down payment for the new purchase.
The biggest hurdle will be getting your current lender to approve the short sale. Most lenders will approve a short sale. It just takes time and a little patience.
But, it is a great opportunity to move on from your upside down property and start building equity elsewhere.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at email@example.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 253-310-1177.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Nathan Olotoa.
Nathan is a Real Estate Broker at Keller Williams-Tacoma. Short Sales Realtor
Phone: 253-310-1177. firstname.lastname@example.org.
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Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Nathan Olotoa's personal views and do not reflect the views of Keller Williams-Tacoma.
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