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Question re relocation hardship

Posted by Coleen DeGroff on November 19, 2011 at 2:27pm in Short Sale Discussions

Hi all,

I have sellers who have an incredible job opportunity in another city; unfortunately they are underwater on their current home.

So here's the question -- this isn't a forced relocation situation -- it's a voluntary relocation that's a much better financial opportunity for this family.

Can they still write a hardship letter for relocation reasons?

Any advice/insights would be appreciated.

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hardship, relocaton, sale, short

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Replies

Eric January 4, 2013 at 8:44am

Hi Everyone - I'm currently in the transition to relocate and I'm planning on doing a short sale. It seems like we have many success stories and communication on hardship won't be a problem. My question is if I keep current on my mortgage until I sell, will my credit be affected? Also, do I have to show hardship within my assets (Savings, Stocks)? Thanks for your advice.
- Bryant Tutas > Eric January 4, 2013 at 8:50am
  
  The short sale itself is a negative on your credit report even if you stay current. "Settled for less than owed" or something similar will show up. this is a derogatory.
  
  If you are relocating more than 50 miles away due to a job transfer then you do need a financial hardship. Much will depend on who the investor is.
  
  I've dome many short sales for folks with well over $1,000,000 in assets.
  
  If you need help finding a short sale superstar to handle this for you just complete this form and I'll connect you with one of our members. https://docs.google.com/spreadsheet/viewform?formkey=dHVVS3FxYlMzRX...
  - Eric > Bryant Tutas January 4, 2013 at 9:00am
    
    Thank you. Yes, it's greater than 50 miles and I could provide financial implications by paying for my new location and my mortgage. I'll reach out if I need additional support.
    - Eric > Eric January 4, 2013 at 9:02am
      
      Do you know if my credit would be just as impacted if I stayed current or missed payments?
      - Bryant Tutas > Eric January 5, 2013 at 4:12am
        
        Difficult to answer since there are so many factors that go into your credit scoring. Staying current is probably better.
        
        Eric > Bryant Tutas January 5, 2013 at 6:11am
        
        Thank you!
Paul Francis - Vegas Short Sales November 22, 2011 at 3:36pm

Just had one approved with a similar situation... Seller volountarily relocated to take a better job.

1) Listed the home for sale. Payments were current.

2) Seller moved to the new location to start their new job --- bought another house.

3) Found a buyer.

4) Short Sale Approved...
Laura Rivera November 21, 2011 at 5:55am

Hi Coleen,

I had a B of A past short sale seller who left the underwater home for a better opportunity in the East Coast. Their home was vacant for 6 months already when I listed it. Their hardship was maintaining 2 household expenses and they got approved with no deficiency. It is all about documentation.
Jayne Sanders November 20, 2011 at 8:12am

Here is the deal these days. You really don't need any other reason except for the fact that you have to sell your house and you are underwater. That is the hardship and all banks I have dealt with are accepting that.So long as they are not behind on payments they can buy another house at the new location.
Michael Schneider November 20, 2011 at 6:07am

Great time to relo with an underwater house. Never had a problem securing approval on reasonable terms.