Can I Short Sale My Home If I Have a Good Income or Substantial Assets?

By
Real Estate Agent with Keller Williams Realty

The answer is ABSOLUTELY!  I recently did a short sale on an investment property where my client owns multiple properties (1 with no mortgage), has substantial equity in his primary residence, and over 500k in liquid assets and retirement accounts.  His lender was Wells Fargo - he was released from a deficiency did not have to bring any money to closing, and did not sign a promisory note.

This is not always the case and each situation is different.  Some of the variables are:  Who is the lender and how many mortgages are there?  Does the loan have mortgage insurance?  Who actually owns the loan (most likely its not the lender)?  Why are you requesting a short sale?  Is the mortgage current? 

On another recent short sale, my sellers had to bring $1500 to closing and sign a promissory note for $5500 (terms were $100 / month payment, interest free).  Their lender was PNC Mortgage and they were current on their payments at time of closing.  The seller did not have a reduction of income and they were selling house so that they could live in a bigger home.  They owed 185k and the home sold for 103k.

If you have any questions regarding short sales or for information please contact me at steve.capen@gmail.com or go to www.pinellascountyshortsales.com , www.pinellascountyshortsalerealtor.com , www.stevecapen.com.

 

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  1. Tony Marriott 11/09/2010 09:58 AM
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Topic:
ActiveRain Community
Location:
Florida Pinellas County
Tags:
short sales
pinellas county
st petersburg
seminole
clearwater
wells fargo
pnc mortgage
assets

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Rainer
59,348
Paula Stills
Full time Real Estate, Ready when you are!
Keller Williams Market Pro Realty

Thanks for the post very interesting information.  Make it a great day.

November 09, 2010 09:23 AM
Rainmaker
390,208
Tni LeBlanc
JD, MA, REALTOR, CalBRE # 01871795
Mint Properties, Tni LeBlanc (805) 878-9879

Thank you for writing this post it is important for people to know that this is happening.  Many agents are spreading misinformation that owners can't ask for a short sale if they don't have a job loss.  Each lender has a different criteria for hardship and can grant a short sale for different reasons.

November 09, 2010 09:24 AM
Rainer
28,294
Steve Capen
Keller Williams Realty

I agree!  Another misconception is that homeowner has to be behind on their mortgage - NOT TRUE!

November 09, 2010 09:25 AM
Rainmaker
445,996
Jeana Cowie
Broker Associate, ABR, CRS, GRI, SRES
RE/MAX Real Estate Limited

Steve, Everyone should know each situation is different depending on bank, etc. Excellent post.

November 09, 2010 09:37 AM
Rainmaker
906,113
Tony Marriott
Associate Broker, REALTOR
Haven Express @ Keller Williams Arizona Realty

A great example to help bust the myth that if you don't have a "hardship" then the lender won't approve a Short Sale.  Unfortunately many agents and attorneys out there just don't understand that fact.

November 09, 2010 09:58 AM
Anonymous
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Rainer
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Steve Capen

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