Can I Stay In The House While A Short Sale Is Being Done?

By
Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827
http://actvra.in/5Tp

Can you stay in the house while a short sale is being worked out with your lender?

Yes! Actually, your lender usually prefers you stay in the house, even if you are not paying the mortgage.

Why Does The Lender Want You Stay?

If you stay in the house, you are protecting the house, which means you are protecting the lender’s investment.

Here’s how you help the lender by staying in the house:

  • You are keeping the heat on, thereby protecting the house from freezing pipes and water damage. This is very important in the Louisville, KY area.
  • You are keeping the house ventilated, thereby reducing risk of mold.
  • By occupying the house you are reducing the risk of vandalism.
  • By keeping the lawn mowed you are keeping the county inspectors from attaching penalties against the house that eventually your lender may have to pay.
  • You are maintaining the house as a home, rather than leaving it as an abandoned property.

All your simple actions of staying in the house help protect the lender from additional losses. Some lenders stipulate that you MUST stay in the house to qualify for the short sale.

Sounds Unlikely The Lender Will Want You To Stay In The House?

One easy way to find out is to call your lender and ask. You must get transferred out of the collections department to a department that is set up to help you avoid foreclosure. These departments have a variety of names;  Home Retention Dept., Foreclosure Workout Dept., Short Sale Dept., or Loss Mitigation Dept.

Ask them the same question: Can I stay in the house during the short sale, even if I'm not making mortgage payments?

You may be pleasantly surprised by their answer.

You should also confirm your decision with an attorney.

So what's the next step?

If you are in the Louisville, Kentucky area, please call Dave Halpern, Real Estate Broker, for help with your short sale. Put a short sale Realtor specialist on your side. Your lender typically pays all commissions and closing costs, so you don’t have to. You have options. Please call me today.

 

 

Posted by

 

 

Dave Halpern

Realtor, Louisville Short Sale Expert

Keller Williams Realty Louisville East

(502) 664-7827

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Sellers looking for foreclosure help in Louisville, KY should call Dave Halpern, Realtor, Louisville Short Sale Expert, Louisville Short Sale Expert, Keller Williams Realty Louisville East, (502) 664-7827. I will dedicate to you all the time you need for a full explanation of the process. We are compassionate, caring and patient. I will listen to your needs and wishes and customize a strategy to meet your circumstances. In a short sale your lender typically pays your closing costs and commissions.

I will provide you detailed information about foreclosure options and short sales. We help dozens of sellers avoid foreclosure every single year in Louisville, Jefferson County, Oldham County, Bullitt County, Shelby County, Nelson County and Spencer County.

We can help. You have options. Call even if you think your house isn't sellable. Put an expert real estate agent on your side. Many testimonials available.

Dave also trains other Realtors how to perform successful short sales.

Sell or buy a home - start the process at Dave Halpern Real Estate Group

IMPORTANT NOTICE: Dave Halpern, Realtor and Keller Williams Realty Louisville East are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit. We do not provide legal advice, you are encouraged to seek legal counsel. We cannot and will not charge upfront fees.

 

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Topic:
Home Selling
Location:
Kentucky Jefferson County Louisville
Groups:
Club Chaos
Expired Listings For Fun and Profit
Short Sales
Short Sales Specialists
The Ninety-ninth Percentile
Tags:
dh
short sale
realtors
real estate agent
louisville
foreclosures
stay in the house
avoid foreclosure
vandalism
lender
water damage

Comments 39 New Comment

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Rainmaker
276,790
Kathryn Maguire
Serving Chesapeake, Norfolk, VA Beach
GreatNorfolkHomes.com (757) 560-0881

I have never encountered a lender who wanted you to move out during a short sale. In fact, I know of lenders who send people by the house to check and MAKE SURE that someone is in the house and keeping up the property.

February 21, 2011 09:17 AM
Rainmaker
258,618
Bill Travis
Broker/Owner
Captain Bill Realty, LLC

The seller should understand that the home is still their responsibility. If anyone gets hurt in that property, they could be held liable.

The insurance company needs to be notified if the seller has moved out. They may charge a vacant property rate. If the seller has moved out and not notified the insurance company, then they may not cover any damage or liablilty for the seller because it is now vacant and not properly insured.

Therefore, if a seller is contemplating moving out for any reason, they should consult with their insurance company and also notify the lender of the reason they're moving out. Then the lender may not consider it abandoned.

February 21, 2011 02:00 PM
Anonymous #38
Anonymous
Mihir Gandhi

You make some good points.  Sometimes the short seller acts in certain ways because is uninformed or unaware of his options.  It is difficult but in the circumstances it is a 'Win-Win' situation for all parties.

February 21, 2011 09:47 PM
Ambassador
1,518,686
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

This makes sense since homes seem to deteriorate when vacant though I'd be curious to see exactly how they responded to the questions.

February 21, 2011 11:12 PM
Rainmaker
649,082
Rob Arnold
Metro Orlando Full Service - Investor Friendly & Foreclosure Realtor
Sand Dollar Realty Group, Inc.

A vacant house is going to deteriorate rapidly over time.  No doubt the lender prefers them occupied and maintained. Thanks for elaborating the details on why.

March 04, 2011 08:57 AM
Anonymous
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Dave Halpern

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