Can I Negotiate a Short Sale if I'm NOT Behind on Mortgage Payments?

Real Estate Agent with The Aguilera Real Estate Team - Homes in Tracy and Mountain House, Central Valley California CalBRE# 01766690

Most lenders today are looking for monthly cash flow shortfall, or pending shortfall and insolvency. If you meet these requirements of a verifiable hardship, and are running out of funds to continue making timely mortgage payments, you may qualify for a short sale. Deliquency or default is not required to initiate a short sale transaction. Don't wait until your only option is foreclosure!

In a hardship letter for short sale (or short payoff), if a seller/borrower is currently not in default, but can make the case that it is unavoidable, they can proceed with a short sale according to Freddie Mac.

A Sample of Freddie Mac Eligibility Standards for Borrowers:

1. Meet residency and occupancy eligibility

2. Meet hardship requirements (death of borrower, divorce/separation, disability, distant employment transfer)

3. Deliquency on payments due to involuntary inability to pay, OR imminent danger of default

4. Complete Form 1126 - Borrower Financial Information

5. Allow access to the interior of the property for a Broker Price Opinion (BPO)

6. Property listed prior with a real estate broker at a price based on a market sales comparison using the as-is value with a 90-day marketing timeframe

7. Maximum possible contribution toward any deficiency from the sale in cash and/or a promissory note

8. The borrower did not enter into a program or arrangement where a third party takes the title and arranges a short sale in exchange for a fee.

9. Waive reimbursement of any Escrow, buydown funds, or prepaid items and assign any insurance proceeds to them, if applicable

10. The sale is an arm's length transaction

11. Have a monthly debt-to-income ratio greater than 55 percent

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 Lisa Aguilera, Realtor, Add QR Contact  
Cell: 209-814-8256 | Office: 209-597-8256 |Fax: 209-370-8255 | CalBRE # 01766690
This blog article was provided by Lisa Aguilera, a Nationally recognized Realtor and member of the Central Valley Association of Realtors (CVAR). Top Producing Realtor and  CVAR Master’s Club Winner with over $3.2 Million in Sales Annually. Search California real estate and homes for sale:   Short Sale information at Short Sale My Tracy Home or Short Sale My Mountain House Home. Homeowners anywhere in California or the United States contact me for more information: Short Sell Your Home.
Serving the following Central Valley / East Bay Area Communities: Tracy, Mountain House, Lathrop, and Manteca.  | Homes for Sale Tracy CA | Short Sale Tracy CA | Foreclosure Tracy CA |Tracy Real Estate | Homes for Sale Mountain House CA | Short Sale Mountain House CA | Foreclosure Mountain House CA | Mountain House Real Estate | Central Valley Real Estate | East Bay Area Real Estate
Disclaimer: The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about real estate, short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.

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