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Short Selling without a missed payment (??)

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Real Estate Agent with Sandpoint Realty rain@lakeandhomes.com AB36782

Hi

I work short sales all the time and I usually encourage my clients to keep up with the payments the best that they can.  Even if that means making partial payments.  About half of my short sales are negotiated with the clients current on their loan.  They take alot less of a hit on their credit.  I have only had the bank ask for a seller contribution one time on a client that was current on their loan and I got them to back down because my client was current.  I have had the bank ask for seller contributions on loans that were delinquent and they used the excuse that the owner was 1 year delinguent and shouldnt be able to just walk away.

I have seen people get very hurt by getting bad advise from an agent to not pay their mortgage.  Usually when someone gets to the point they are considering a short sale, they have a definate verifiable hardship. I believe this hardship is more of the deciding factor.

Short sale negotiations are unpredictable.  They are like snow flakes and no two are alike.  The best thing to do is prepare your seller that the bank may ask for a contribution, then fight them tooth and nail if they ask and it is just not something your seller can do.

Original content by Mark Geis 42118

I'm often asked by sellers the same question time and time again:

"Don't I have to be late on payments before I can qualify for a short-sale"?  

The answer, in a nutshell, is NO.  Banks will negotiate a short-sale if there is a great risk of "Imminent Default."  

HUD defines "Imminent Default" as:

1.  Is current or less than 30 days delinquent on their loan.

2.  Has a documentable hardship, which can include a reduction in income or a loss of employment OR a change in household situation, such as death in the family, divorce, serious illness or other issues.

Obviously, the greatest benefit to not missing any mortgage payments and proceeding with a Short Sale is that it can reduce the amount of time for anyone to buy another home with a mortgage in the future.  Unfortunately, in this marketplace, it's not always possible.  

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Rain Silverhawk

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rain@lakeandhomes.com
Rain Silverhawk Realtor
Sandpoint Realty LLC
1205 Hwy 2 STE 203 B |  Sandpoint, ID. 83864
Phone (208)  610-0011  

 

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