Will a lender consider a short sale if you are current on your payments?

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Will a lender consider a short sale if you are current on your payments? by Pasadena short sales 

We use to say you had to be behind on your payments in order for the bank to consider a short sale. But not any more. Now days many lenders will consider aShort Saleoffer on  loans that are not delinquent.

It used to be the case that an underwater seller had to prove some sort of hardship like job loss, death of a spouse, illness or some other unfortunate circumstance to qualify for a short sale.

But now those who have no real hardship but have seen the value of their properties plummet…and as pure business decision want out can do so with a Strategic Short Sale.

A Strategic Short Sale is when homeowners who purchased their homes at the peak of the market are now watching those values drop like stones and have decided it no longer makes sense to make payments on a property that has lost so much value.  Even though they can still make their payments and they have no other real “hardship”, they’ve decided to short sale their property. In essence they have “strategized” their way out of a declining investment.

Will lenders allow sellers to do a strategic short sale without a hardship?

The answer is very often yes. More and more often, the short sale is approved. A hardship isn’t always necessary as the bank would often prefer to dostrategic short sale than take it back and sell it later for less.

What are the benefits of a strategic short sale?

• You can begin rebuilding your bank account with the money you are saving.
• You can live in your home while it’s being sold and save some cash to get you off to a good recovery.
• You may qualify for $3,000 in relocation expenses from HAFA
• The impact of a short sale to your credit is less that of a foreclosure.

What’s the downside?

• Even though the impact to your credit of a short sale is less that of a foreclosure your will take a hit.
• You may be subject to taxes for the “short” of the sale. Although thanks to to SB 458 … When lender has agreed to a short sale on a home, SB 458 insures that all lien holders (the first and second loans) must consider the outstanding balance as completely paid off and the short seller (homeowner) will not be held responsible for any future payments on the home.

• You may be asked to bring a cash settlement to closing, sign a promissory note, or both.
• You won’t be able to purchase another house with a conventional loan for at least 2 years.

Should you do a strategic short sale? Clearly this is a very personal decision and you really need to consult with your tax person and possibly your attorney to see how this will impact you in their areas of expertise. But ultimately you may decide that even though you can make the payments now,  you are struggling to do so…or you can’t manage to save for anything else, it may simply be a wise business decision for you to move on and get a fresh start.

Munson Realty and their Pasadena  short sale agents are a group of real estate/property advisers, escrow agents and title representatives with the intention to streamline the short sale process. Our goal is to create a win-win scenario for “you”, the homeowner and your lender. Our team of experts has helped countless distressed sellers through the stressful threat of foreclosure.

Copyright © 2011 By Stephen Munson-Munson Realty, Pasadena short sales *Discreet and Confidential Short Sale • does a short sale stop foreclosure •foreclosure • foreclosures • hafa • hafa program • hafa short sale • hafa short sales • Pasadena short sale agents Pasadena short sales • Pasadena short sale broker • Pasadena short sales broker • short sale • short sales • strategic short sale • What is a strategic short sale