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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They can. Just prepare them that they will more than likely be required to make a cash contribution at closing.

Coleen - Most sellers in this situation have already moved.  Thus, either the payment to maintain two houses, or inability to rent out the house they left to cover the mortgage is a hardship.  In addition, their move to ensure the long term financial stability of their household is a valid explanation.  

I've had a few of these approved without my sellers even being late. I had to document that their paychecks were coming from a city or state too far from the underwater property to commute. In both my cases the families were divided top meaning the wife stayed to maintain the house until it sold and the husband moved to a rental in the new state. We documented this as additional hardship because families need to be together. We had to explain that the seller tried to find a local job but there weren't any in his field. We also showed that renting out the house wasn't an option because the rent wouldn't cover the mortgage and they couldn't manage it from afar. The negotiator on one of the deals said a detailed hardship letter was critical on these to get the lender on board.

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

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.

 

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.

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...

 

 

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. 

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...

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.  

Do you know if my credit would be just as impacted if I stayed current or missed payments?

Difficult to answer since there are so many factors that go into your credit scoring. Staying current is probably better.

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