Profile picture for pekkles04

Sell My house....maybe short sell

Well, I need some advice on this. 
I have a rental property, which is a practically brand new home.  It was finished built in 2008 in Port St. Lucie, FL.  Here's my dilemma, as with many people facing the same, my renters cannot afford the mortgage, but can only afford less, which I cannot afford to make the payments on the mortgage difference that the renters can't afford.  I have my property mortgage to pay too, and I do not live in FL. 
I'm considering selling the house, and I am 2 months behind on payments now.  I think I have to sell, because this is stressing me out.  How do I have to go about asking the bank about short selling. 
My house mortgage is more than the value of the property. 

  • March 30 2010 - Port Saint Lucie
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Answers (9)

Profile picture for pekkles04
Also, how do I tell my tenants I want to sell the house, they just renewed lease on??
  • March 30 2010
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The absolute first thing you should do would be to re-market the home in an effort to capture a capable renter, that is unless the amount of rent needed to cover the mortgage is not feasable in the current housing market. If this has already been exhausted and you've been advised by legal council to complete a short sale then the property needs to be listed on the market. Once an acceptable offer has been received then the short sale process begins with the bank. These are the first few steps to the process, there is a lot to successfully completing a short sale so make sure to find someone with experience to aid you along the way. The last thing you want is a failed short sale that forces you in to foreclosure. If you would like more information or help in locating someone feel free to contact me, I'm always open to help.
  • March 30 2010
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I would first talk with a CPA regarding the possible taxes you may be responsible for.  After talking with the CPA, you can determine what direction you will need to go.  As an owner of rental properties, I have been in the same situation.  I now will not rent to someone who cannot pay my expenses.  Good luck.
  • March 30 2010
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You should consult with an experienced short sale attorney in your area before contacting the bank or a realtor.
  • March 30 2010
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Put the house up for sale with a real estate agent
Contact the loss mitigation department of the bank.
Sometimes the hardship forms can be found on the bank's website
You can contact a short sale attorney, a real estate foreclosure specialist, a real estate agent, its up to you.

Remember that the bank will more approve a short sale if you are in hardship and cannot afford the house due to hardship.

Hope and pray the bank approves it and a buyer sends a contract before the foreclosure date.
  • March 30 2010
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As someone else mentioned, you could try to get a new paying tenant for the property if you can make up the missing months.

If you cannot, you might try doing a "Loan Modification" on this property, but do find an independent company to represent you in doing this. Do not go directly to your lender. Remember that the lender is not representing you.

This company can also help you Short Sale the property if the bank will not accept a Loan Mod.

Just keep in mind that a SS stays on your credit for a few years, so if you want to avoid that, the best bet is to find a more reliable tenant

  • March 30 2010
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Pekkles, I live on the Treasure coast and am active in the St Lucie County and Port St Lucie markets. If you need the name of an attorney that handles short sales down here or an evaluation of the value of the property, click on my profile and contact me.

At your service.
  • March 31 2010
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Profile picture for wetdawgs
Remember:  a short sale of an investment property has totally different tax ramifications than a short sale of your personal residence when you've suffered hardship.  Please talk with an experienced accountant.

I'd find a renter who can pay fair market value rent (if that is what is needed to cover the mortgage) and other wise work to sell it.   
  • March 31 2010
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On your 90th day of being late, a new department will call you (loss mitigation). They have the power to modify your loans. Before speaking with them you need to identify and prove your hardship
  • August 23 2010
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