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how can I short sale my condo?

I want to know what is the process that I need to follow and requirements for a short sale, I am getting divorce and don't know what to do.
  • July 01 2012 - South San Francisco
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Answers (2)

In California the short sale negotiation process could start as late as six months after the notice of default has been issued. You still have to qualify and the lender has to agree to any offers made before the short sale is complete. Most lenders will require the following three things:

1) Mortgage in Default

You must be in default (missed payments) before the lender will consider a short sale.  Even then, you must have explored all other options (such as repayment plans and loan-modification programs) before you can qualify for a short sale.

2) Prove Financial Hardship

You must prove financial hardship and demonstrate this by writing a hardship letter to the lender. You will need  documentation detailing your current financial status (in the form of recent pay stubs, income tax returns, W-2 forms and expense sheet) and any extenuating circumstances, such as job loss, death, health conditions or other factors that result in the loss of income. It also helps if you are insolvent (have no assets).

3) Under Water

If condo's value falls below the outstanding mortgage balance (including all fees and penalties) than then the house is considered "under water" and the lender will likely agree to a short sale.

The lenders have lots of Incentive Programs for home owners to short sale. I am not in your area but I do belong to a network of Short Sale Specialist.

Let me know if you need a referral to a Specialist in your area.





  • March 02 2013
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Sorry to hear about your current situation, a competent agent would guide you through the process; contact lender, negotiate short sale approval and you can start a new life. You may get a 1099 from lender for debt settlement which in turn become a taxable income. You should consult a tax attorney for your situation. Good luck. 
  • July 01 2012
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