Can I Short Sale my home if I just bought another home to live in?

By
Real Estate Agent with Keller Williams Realty

This is a question that I have been hearing more frequently and the ANSWER IS YES!  Let me share the following 2 scenarios:

1.)  Sellers had their second child and needed a larger home and wanted to be in a better neighborhood to raise their family.  They puchased a nice home in a great neighborhood and a few months later decided that a short sale was their best option in regards to their first home.  They owed over $200,000 between 2 lenders and the house was worth less than $100,000.  I listed the house for sale and submitted an offer of $75,000 to their 2 lenders for  approval.  Now keep in mind that the sellers did not have any decrease in income or financial hardship other than owning 2 homes.  1st lender agreed to short sale and release seller from any deficiancy or liabilty if they agrred to a interest free promissory note to be paid over 8 years ($104 / month).  The 2nd lender agreed to release deficiency and any liability for $5000 cash contribution at closing.  Seller were able to be released from all liability and sell house for $125,000 less than what was owed for $15,000! 

2.)  Sellers bought a house for $175,000 and paid cash.  Less than 6 months later they decided to short sale an investment property.  They have not experienced any economic hardship what so ever other than trouble renting the house out and having a tenant trash the house.  Short Sale was approved by their lender for a purchase price of $95,000 (sellers owed $135,000).  Lender approved short sale and released seller from any deficiency or liability and did not ask for any cash contribution or promissory note!

We are getting short sales approved for families who thought they would not qualify.  You would be suprised what the banks will accept in a short sale.  Please keep in mind that every situation and every lender is different. 

Steve Capen & Associates with Keller Williams Realty has helped many families throughout the Tampa Bay Area.  Please call or email for a free consultation on the short sale process and remeber that your lender will pay the commissions and closing costs!

Steve Capen

Keller Williams Realty

727-348-2211

steve.capen@gmail.com

www.pinellascountyshortsales.com

 

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Topic:
Home Selling
Location:
Florida Pinellas County
Tags:
short sale
tampa bay
deficiency
st petersburg
seminole
clearwater
florida
steve capen
realtor
lender
mortgage

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Rainer
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Lisa Dunham
Keller Williams Realty - Alexandria, VA
REALTOR, MBA, CDPE, Alexandria VA Real Estate, Short Sales

Steve, thanks for sharing these scenarios!  I have been talking with a couple of potential sellers who may or may not qualify for a short sale.  Although it looks doubtful, it may be worth a try.  These days, you just never know.  Thanks again!

Jun 22, 2011 10:29 AM #1
Rainer
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Steve Capen
Keller Williams Realty - Saint Petersburg, FL

What I am finding in these situations is that the lender is willing to do a short sale and thast just want a promissory note or cash contribution.  In most cases its for 5-20k and thats a great solution for a lot of people.  Sometimes we get lucky and lender doesn't ask for anything!

Jun 22, 2011 10:36 AM #2
Rainmaker
315,642
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Steve,

Excellent job! With the right Realtor, short sales can work.

Jun 23, 2011 01:36 AM #3
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Rainer
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Steve Capen

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