Hey I make my mortgage payments on time, but I want to short sale my home, is that possible?

By
Real Estate Agent with The Pitcher Group

Short sale informationHypothetically, let’s say your boss transfers you to a new city.  One of your biggest worries may be the prospect of having to sell your home during a housing slump.  Even if you have been making timely payments, this is no time to take on two mortgage payments but you know it may be difficult to sell your home.  This is just one scenario. People need to sell their home for other reasons, such as divorce or needing a bigger place for a growing family; or needing a smaller place after retirement.  So, you may be wondering; “Do I have to be late on my payments to qualify for a short sale?”

Thankfully, the answer is “NO”; you do not need to be late. Our company has completed many short sales even for a seller who was never late on so much as one mortgage payment. The object of getting a short sale approved is to prove to the bank that there is a hardship. A classic hardship includes a job transfer. If you’re wondering if it affected their ability to buy a new home with a short sale on their credit, the answer is ‘yes’ because of the fact they were never late on their payments.

To read the entire article please click here: http://savemyutahhome.com/2011/07/hey-i-make-my-mortgage-payments-on-time-but-i-want-to-short-sale-my-home-is-that-possible/

Comments (4)

David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Brian, this is very good information. Thanks for taking the time to share......

Jul 27, 2011 01:29 PM
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

 I can only speak from EXPERIENCE as I have learned to not trust much of the bad information being circulated about short sales.

I attempted to short sale my home twice and was denied both times with no actual reason from Bank of America other than failed to qualify.  I had never missed a single payment, but after my divorce, and the slump in the real estate market, our household income plummeted to about 1/3 of pre divorce.

After the 2nd denial and a year of trying, a very nice person at AMS Servicing told me that the only reason I have not been approved was because I have never missed a payment.  She told me that in November and said that until I was 61 days late, I would never be approved.

I skipped Dec and Jan payments and on the 61st day of being late, I was offered a HAFA shortsale and it was approved within 8 weeks and we sold the home in 2 more months and we are now closing after a total of 7 months from inception to completion.

And the only reason was because I refused to skip payments and once I did, I am now closing on Monday.

I have since my own short sale started in Jan, now successfully negotiated over a dozen short sales and am so busy with folks that want to hire a 100% successful closing realtor, I now have a full time negotiator helping me and a law firm.  I now only have time to take new listings and they handle all the processing for me.

And I am shopping for my first buyer agents and a partner listing agent.

So, no matter what you hear, I am speaking from EXPERIENCE when I speak and that's the facts.

Read all about it at: http://actvra.in/8hd

 

Jul 27, 2011 01:44 PM
Brian Pitcher
The Pitcher Group - Salt Lake City, UT

David, thank you! Glad that you enjoyed the info.

Jul 27, 2011 03:48 PM
Brian Pitcher
The Pitcher Group - Salt Lake City, UT

it is easy to have a 100% success rating on completing short sales if you have only completed a few.I am not knocking at all, keep up the good work. I personally have closed several deals where the seller was never late on their payments. You don't have to be late, you only have to prove a hardship. If you got denied without getting a reason then you weren't asking the right questions. On the other hand I have also had banks say that they won't approve or that the Mortgage Insurance company won't approve it unless the homeowners were late. So it goes both ways. There are many variables that are involved and the 2 most important to consider are who is the bank and the corresponding investor and what is the financial situation of the seller. As with all short sales, it is a case by case basis.

Short sale agents that are worth their salt that are closing 50 short sales a year or more are going to have a 90% approval rate or higher. The best way to keep a 100% success rate is to turn away the ones that you aren't sure if you can get it done or not based on a questionable hardship or they are so many days before foreclosure. Those of us that do a lot of them will take on even the difficult ones that no one else wants to take or even have the inkling on how to structure the tougher deals such as a B of A first mortgage and a large chase 2nd that wants way more then $3K to settle. Those are tough but doable if you know how to structure it and keep it on the huds to keep it legal.

I hope that you continue to grow and keep a high close ratio as the national average is less then 20%. Keep it up. I would just caution you that just because you haven't experienced certain scenario's doesn't mean that they don't happen.

My Experience is closing well over 100 short sales personally over the past 3 years, and also am part owner in a negotiation company that is working on around 200 to 300 of them at any given time with a 90% close ratio.

Jul 28, 2011 05:24 AM