Short Selling without a missed payment (??)

Reblogger Julie Baldino
Real Estate Broker/Owner with Front Door Realty

I am asked this all the time as well, and am currently negotiating 3 short sales where the seller is current on their mortgage payments. Many thanks to Mark Geis for this information.

Original content by Mark Geis 42118

I'm often asked by sellers the same question time and time again:

"Don't I have to be late on payments before I can qualify for a short-sale"?  

The answer, in a nutshell, is NO.  Banks will negotiate a short-sale if there is a great risk of "Imminent Default."  

HUD defines "Imminent Default" as:

1.  Is current or less than 30 days delinquent on their loan.

2.  Has a documentable hardship, which can include a reduction in income or a loss of employment OR a change in household situation, such as death in the family, divorce, serious illness or other issues.

Obviously, the greatest benefit to not missing any mortgage payments and proceeding with a Short Sale is that it can reduce the amount of time for anyone to buy another home with a mortgage in the future.  Unfortunately, in this marketplace, it's not always possible.  

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Rainmaker
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Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL

Great information for home owner's to know a lot of them probably don't realize this is possible. Thanks for the re blog.

Oct 18, 2011 01:00 PM #1
Rainer
72,651
Amy Robinson
London Pierce Real Estate - Scottsdale, AZ
Realtor, Scottsdale Arizona Homes For Sale

Hi Julie,  This is great info thanks!

Oct 18, 2011 01:01 PM #2
Rainmaker
271,701
Julie Baldino
Front Door Realty - Vancouver, WA
Opening Doors to New Chapters...

Yes, a lot of people don't realize you can do this, and some of the big banks are complying with it too. It is a great option for people. Thanks for reading!

Oct 22, 2011 05:41 PM #3
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Rainmaker
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Julie Baldino

Opening Doors to New Chapters...
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