Zillow Advice: Home Selling - if I stop paying for my investment property, will it be easy to convince bank for short sale? http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ Zillow Advice | Zillow Real Estate It is almost always advisable ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ It is almost always advisable to establish a trust for your assets...especially if they are considerable.&nbsp; Consult a trust attorney in your state for your options.<br/><br/>Regarding your investment property.&nbsp; If it was rented and no longer has a tenant, that is considered a hardship because it is "loss of income".&nbsp; If this was not the case, look deeper for any type of hardship or "imminent default" possibility and get yourself a true professional listing agent that is an expert in short sales.<br/><br/>If you have any questions, feel free to contact me.<br/>Best regards,<br/>Steve Sun, 07 Nov 2010 07:31:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-11-07T07:31:00Z Do you still pay your mo ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ <p>Do you still pay your mo pmt?</p> Wed, 03 Nov 2010 00:01:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-11-03T00:01:00Z We have done a ton of short ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ We have done a ton of short sales. &nbsp;In the end, it still comes down to your ability to claim and prove hardship. &nbsp;It doesn't matter if the property is your residence or an investment property, but you have to show hardship.<br/><br/>With that said, you will have tax implications too. With non homesteaded properties you will receive a 1099 tax form on the difference between what you owe and what you get. &nbsp;For instance: &nbsp;You sell your home for $200k and you owe $300k. &nbsp;You will receive a 1099 for $100k and will be taxed as income.&nbsp; Tue, 02 Nov 2010 23:55:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-11-02T23:55:00Z You would not be eligible ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ You would not be eligible for a Short Sale because there is no real hardship. If you stop making payments, you will go into pre-foreclosure and you will either have to pay the full amount you owe, likely with fees included, or let your investment turn to an REO and take a 200-300 point hit on your credit and lose the property. Tue, 02 Nov 2010 23:47:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-11-02T23:47:00Z Um no. You cannot stop paying ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ Um no. You cannot stop paying for an item with hopes to renegotiate what you previusly agreed to pay. Sat, 16 Oct 2010 01:34:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-10-16T01:34:00Z Honestly, it doesn't sound ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ Honestly, it doesn't sound like you're in hardship to qualify for a short sale. Don't stop making the payments. Mon, 11 Oct 2010 22:06:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-10-11T22:06:00Z Be sure you can prove you ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ Be sure you can prove you are broke or have a hardship or else be ready to keep paying. Mon, 11 Oct 2010 22:04:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-10-11T22:04:00Z We closed several investment ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ We closed several investment properties on a short sale getting the same response and approval as regular owner occupied homes. Lenders dont care if it was an investment property or not, they WILL REVIEW your short sale request the same way they review all Short Sale requests, only you will need to prove that your income is not enough. They will see your case so move forward with it as soon as possible and you may get the approval! Sun, 10 Oct 2010 16:40:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-10-10T16:40:00Z Some lenders won't even consider ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ Some lenders won't even consider a short sale on an investment property.&nbsp;Even if they did, they might come after your other assets to cover any deficiency. If the property is producing income, then you can likely sell it to another investor. The only issue is if you owe more on the note than what the property is worth. Then, you might have sell it with a mortgage wrap. (If legal in your state). I would consult with&nbsp;a real estate attorney before exploring this route. Mon, 04 Oct 2010 12:33:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-10-04T12:33:00Z In most cases, no hardship ... http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ In most cases, no hardship means no short sale. The bank will not allow you to stick them with your underwater mortgage while you happily collect rents during a protracted short sale. You can read about qualifying hardships&nbsp;<a rel="nofollow" href="http://activerain.com/blogsview/1751348/hardship-for-short-sale-what-qualifies-as-a-hardship-">here</a>.<br/><br/>You took the risk on your investment property, and the bank should not foot the bill for your mistake. Transferring assets to protect them from the bank would be fraud so you need to be aware of that. Your primary residence is generally not vulnerable even if the bank forecloses, but you would need to get specific legal advice to see if that is the case for you. Please don't make the mistake of compounding a bad investment and foreclosure with bank fraud. Fri, 01 Oct 2010 16:00:00 GMT http://www.zillow.com/advice-thread/if-I-stop-paying-for-my-investment-property-will-it-be-easy-to-convince-bank-for-short-sale/363436/ 2010-10-01T16:00:00Z