Will a lender accept a short sale if I am not late on payments?

Will a lender accept a short sale if I am not late on payments?

  • September 27 2008 - US
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (13)

You must establish communication with the mortgage lender. Usually they will want to know your financial situation. Put your income and all of your monthly expenses on paper. Include everything. To accept a short sale, they will want to see that your expenses and debt exceed your income. Talk to them on the phone, by email, and snail mail. Keep copies of everything you send them. Send by registered mail and request signature. Keep notes on all phone conversations. Have your Realtor declare that this is a short sale on MLS when they list your home. Have your Realtor maintain communication with the lender throughout the process.

  • September 27 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Usually they will not but thats not always the case. Call the loss mitigation department and get them to send you the paper work. If you have an offer then even better and they might just go for it. Its worth a shot.
  • September 27 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for SouthBayProperty

NO.

  • September 28 2008
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for lalelaubach

It depends on the circumstances...We submitted for a short sale w/promissary note as we relocated 9 months ago and can't get a buyer for our house...we also don't have the disposable income to pay the bank at closing so we're asking for realtor's credit and a promissary note.  It is our responsibility to pay that money back as we signed the loan...anyhow it looks like it will be approved...

You can get short sales approved for different hardships, not just financial and relocation is one of them....

  • September 29 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It depends on the lender.  You need to find a realtor that specializes in short sales in your area and they can assist you through the process.

  • October 08 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It really does depend upon your situation.

 

I hate to put agents on the hook here, but if you ask for a short sale and don't have the property listed by a Realtor your chances of approval are nil.

 

So, get the property listed with a Realtor.  You also will need to provide a personal balance sheet and cash flow statement to accompany your hardship letter to the lender(s).  A copy of the listing agreement should be part of the package.

 

If you are able to truthfully show that your current income and cash flow are going to cause you to stop making payments you may, MAY have a chance.  If you have already missed payments and your balance sheet/cash flow clearly shows the deficit that is causing it your chances are better.

 

You will be required to send tax forms, pay stubs, all bank account information....If you've moved money to try to hide assets that fact will show very clearly on your bank statements, so don't do it.  Tell your lender(s) the truth, lay out your financial situation to them, and hope for the best.

  • October 09 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Agree, agree! 

One of the worst things people do is put their heads in the sand until it is too late.  The thing to remember is, the lender does not want your house.  They hate foreclosures!!  They would rather try to find a way to make it work, so be honest and lay it out for them.  If it is a matter of not being able to afford it, there are plans being hammered out to refinance mortgages based on their current value, so if you can find a way to hang in there, do it.  Not to sound corny, but help is on the way.

Good luck!

  • October 09 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Work with the bank....they'll let you know what you're options are.  I've seen different banks allow short sales in cases of job changes where a family needs to move for a new job and the current market wouldn't allow them to sell their home for more than they owed on it.

 

Logan Utah Real Estate

  • October 09 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for UhOhAgain

No. You need to be in default atleast 2 months before any bank would consider.

  • October 11 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Mike_oxafloppin

"No. You need to be in default atleast 2 months before any bank would consider."

 

100% not true.

 

you in fact can get short sales approved without having ever been late on a payment.
you need someone who is versed in negotiating with loss mitigation depts. There are key things to put in your letter with facts and proof that you wont soon be able to keep current on payments due to exhausting your savings, running up credit cards, yadda yadda.

 

 

  • October 12 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Mike_oxafloppin

and  ... what Dan said.

  • October 12 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Mike_oxafloppin

some agents are making a move to specialize in loss mitigation negotiations. I have seen them arrange a listing contract and also assist the seller in gathering the required information to submit to the bank as well as the appropriate parties to contact. IMO agents are walking a very fine line in helping sellers do this and possibly opening themselves up to additional liability but on the other hand if the short sale gets pre- approved they are likely to have a sure sale.

  • October 12 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Most lenders will not accept short sale without late payments. But it is possible. The 1st step is a hardship letter to he lender explaining the hardship of your financial situtation.

  • October 13 2008
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.