Recently I had a call from a concerned home owner. Like almost every home owner, he was concerned and had many questions regarding the short sale process. In his case he was not delinquent but he was almost $50,000 upside down in value of his home. When he purchased the home, his goal was to live there, raise his family and eventually pay the home off.
Than unexpectedly he was offered a promotion out of state. The only dilemma, he probably could not sale his home to break even and he did not have the money to bring to the closing table.
I suggested “rent the home himself or hire a company that specialize in property management”. He declined that suggestion. He thanked me for my help! He asked quite a few important questions that I will share with you. I will eventually follow up with him to find out his plans Here are some of the questions that were asked.
I have not missed a payment but I would like to short sale my home. What do I do?
Each bank has there own criteria. Definitely contact the loss and mitigation department of the lender and explain your situation. Keep in mind most lenders require some type of hardship. To my knowledge you are not required to be behind on your mortgage to short sale your home but a short sale can have an adverse affect on your credit
What is considered as a hardship?
Not all hardships are the same, hardship varies from case to case. Normally, a family illness, lost of income, divorce, adjustment in mortgage payment, job relocation are the most common hardships. Keep in mind hardships are not limited to the above hardships.
What about a deed-in-lieu?
In The deed in lieu is attacking a different beast.
With a deed in lieu, you surrender your ownership of the property to the lender. The lender then assumes full responsibility for selling the house. The lender may forgive the remainder of your loan.
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