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Can I short sell a rental property in Michigan?

The rental is an FHA loan and is currently unoccupied. We can not rent it out for what our monthly payment is. 
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October 13 2013 - Grand Rapids Township
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I have had some experience with investment short sales in Michigan and I can tell you each lender has a different view on this. It will depend on you over all picture and the value of the asset. The lenders I have worked with had the assets on their books way less than the short sale offer would net them, and they were willing to look at the sale after reviewing the borrowers financial picture. This is where it pays to have an expert becouse there are a lot of variables. Are you willing to contribute? Would you be willing to have a unsecured loan? How your financial picture deterioated? Most of the time the story is just as important as the numbers.
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November 27 2013
If you want an article that will help you wrap your mind around your situation and maybe ease the stress it causes... do a quick google search for Underwater and Not Walking AwayShameFear and the Social Management of the Housing Crisis by Brent T White...

You will be glad you did.

Good Luck.
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October 15 2013
Contrary to popular belief... often times just being delinquent on your loan will be enough to "qualify" you for a short sale... 

Margo gave you some good advice below... get a local pro who knows the local market and has knowledge and experience in short sales... They should be able to look at your file and guide you though your options and set realistic expectations... 

Hard and fast "short sale rules" are few and none... every file is different and the "rules" are really just more servicer and investor policies that are often interpreted and applied differently at each bank... 

To answer your question directly: 
Can I short sell a rental property in Michigan?
Yes. You Can.
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October 15 2013
Hi! You can request a short sale on anything. Your criteria will determine if you get approved. However, your circumstance is not uncommon and as long as you can show financial hardship + the fact that the value (and rental value) is not sufficient to make the payments, you likely wont have a problem. You may have to make a cash contribution (Mine have typically been $500-$1000) to the short sale at closing.

Research realtors in your are that specialize in short sales and can help you out with this, & time really is of the essence since there are assorted short sale programs / government programs you may qualify for now, that may discontinue or expire.

Hope this helps!
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October 14 2013
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I squirm in reading your post.  Is what you are saying is that the lenders approved you to get a second mortgage and you really couldn't afford two mortgages?    Didn't they require you to have six months of reserves? 

Is there a reason you don't have a tenant?   It can be a bother to have tenants. It takes time and energy to find tenants and manage rental property.   


good luck
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October 13 2013
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Thanks for the article...With both mortgage payments we are finally starting to feel the squeeze. Our savings are gone and we do not make enough each month to keep our heads above water. Even when collecting rent it was difficult and now that we do not have renters it is impossible.
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October 13 2013
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Here's a link to an excellent article from Elizabeth Weintraub writing on about.com about qualifications for a short sale.  Simply being under water or not being able to get enough rent to cover the mortgage are not sufficient to justify shorting the lender.   Please read the article.

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October 13 2013
 
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