under what conditions would a short sale on investment property be approved? - Short Sale Superstars2024-03-28T12:05:25Zhttp://shortsalesuperstars.com/forum/topics/under-what-conditions-would-a-short-sale-on-investment-property?commentId=3468065%3AComment%3A215287&x=1&feed=yes&xn_auth=no"under what circumstances wil…tag:shortsalesuperstars.com,2012-02-24:3468065:Comment:2152872012-02-24T19:52:28.156ZWilliam J Archambault Jrhttp://shortsalesuperstars.com/profile/WilliamJArchambaultJr
<p><em><strong>"under what circumstances will a bank approve a short sale for a property that is an investment property, not a primary residence."</strong></em></p>
<p> </p>
<p>This is simple! Under the same condtions as any other short sale when there are no goverment incentives invovled!</p>
<p>IE: When settling is in the best intrest of the bank!</p>
<p>A short sale is a privlage the bank (Not the defaulter.) has when it's a better option.</p>
<p> </p>
<p>Bill</p>
<p><em><strong>"under what circumstances will a bank approve a short sale for a property that is an investment property, not a primary residence."</strong></em></p>
<p> </p>
<p>This is simple! Under the same condtions as any other short sale when there are no goverment incentives invovled!</p>
<p>IE: When settling is in the best intrest of the bank!</p>
<p>A short sale is a privlage the bank (Not the defaulter.) has when it's a better option.</p>
<p> </p>
<p>Bill</p> On one investment short sale…tag:shortsalesuperstars.com,2012-02-23:3468065:Comment:2150242012-02-23T13:31:24.836ZMaureen Nicholshttp://shortsalesuperstars.com/profile/MaureenNichols
<p>On one investment short sale I successfully negotiated, the contribution required by the PMI (which was non-negotiable as the PMI company would've preferred paying out much later after a lengthy foreclosure) was allowed to come from anyone in the transaction. In ours, the buyer ended up paying some of it.</p>
<p>On one investment short sale I successfully negotiated, the contribution required by the PMI (which was non-negotiable as the PMI company would've preferred paying out much later after a lengthy foreclosure) was allowed to come from anyone in the transaction. In ours, the buyer ended up paying some of it.</p> You can often combat the cash…tag:shortsalesuperstars.com,2012-02-23:3468065:Comment:2149152012-02-23T04:41:35.510ZEric Mieleshttp://shortsalesuperstars.com/profile/EricMieles
You can often combat the cash contributions even on investment properties or at least get them down considerably. It is best though to have this conversation with the seller upfront and prepare him for the possible scenarios that may play out. I see lots of agents not properly going over the scenarios and when a request comes from the lender like a high counter, cash contribution, prom note etc they almost blow the whole deal.
You can often combat the cash contributions even on investment properties or at least get them down considerably. It is best though to have this conversation with the seller upfront and prepare him for the possible scenarios that may play out. I see lots of agents not properly going over the scenarios and when a request comes from the lender like a high counter, cash contribution, prom note etc they almost blow the whole deal. Hi Jerrold - I'll weigh in on…tag:shortsalesuperstars.com,2012-02-23:3468065:Comment:2150982012-02-23T04:20:39.948ZMaureen Nicholshttp://shortsalesuperstars.com/profile/MaureenNichols
<p>Hi Jerrold - I'll weigh in on this, as I just experienced this situation. Yes, if there is a hardship - like loss of a tenant - you can do a short sale on an investment property. BUT, please double check the type of loan and find out if there is mortgage insurance on it. If there is, the PMI company will likely require a seller contribution. There were a good many 90% LTV investor loans at the peak of the market, many requiring PMI.</p>
<p>Hi Jerrold - I'll weigh in on this, as I just experienced this situation. Yes, if there is a hardship - like loss of a tenant - you can do a short sale on an investment property. BUT, please double check the type of loan and find out if there is mortgage insurance on it. If there is, the PMI company will likely require a seller contribution. There were a good many 90% LTV investor loans at the peak of the market, many requiring PMI.</p> I agree with Thom Colby summi…tag:shortsalesuperstars.com,2012-02-20:3468065:Comment:2143312012-02-20T19:07:41.455ZMaria Fernandezhttp://shortsalesuperstars.com/profile/MariaFernandez
<p>I agree with Thom Colby summit the short sale.</p>
<p>I agree with Thom Colby summit the short sale.</p> You can do the short sale but…tag:shortsalesuperstars.com,2012-02-20:3468065:Comment:2143282012-02-20T18:45:30.706ZMaria Evanshttp://shortsalesuperstars.com/profile/MariaEvans
<p>You can do the short sale but they need to check on taxes consequences before. It will depend on their income. You don't pay taxes only if it is your primary residence</p>
<p>You can do the short sale but they need to check on taxes consequences before. It will depend on their income. You don't pay taxes only if it is your primary residence</p> He may not necessarily have t…tag:shortsalesuperstars.com,2012-02-19:3468065:Comment:2142022012-02-19T22:29:53.728ZTara Samneyhttp://shortsalesuperstars.com/profile/TaraSemtner
<p>He may not necessarily have to bring cash to table- but good to warn them ahead of time. I am 2/2 on investment properties (don't usually handle these). Both were approved with no cash contribution with deficiency waived. The seller had clear and convincing hardship that was well documented (2 investment properties). In one the property was approved for a sale price of only 20% of the note b/c the property was so devalued. Same situation- renter left (was evicted for non-payment) but if…</p>
<p>He may not necessarily have to bring cash to table- but good to warn them ahead of time. I am 2/2 on investment properties (don't usually handle these). Both were approved with no cash contribution with deficiency waived. The seller had clear and convincing hardship that was well documented (2 investment properties). In one the property was approved for a sale price of only 20% of the note b/c the property was so devalued. Same situation- renter left (was evicted for non-payment) but if he cannot rerent to cover mortgage or rental market week...definately a hardship. He doesn't have the income or savings to cover deficit. I like to think of it as imminent hardship, although he approached me on the short sale once he had already missed a payment and knew he was in trouble. My seller gave his hardship letters explaining the situation and what his efforts were. It took over 3 months but they both got approved. He had MI on both also. </p>
<p>So yes, it can be done.</p>
<p>The seasoned agents in my office wanted bigger fish too so I helped this seller :) I credit Short Sale Superstars for helping me get those approvals. They were hard and long, but in the end he paid nothing and got full deficiency waiver. You should advise them to speak to a tax professional though about the tax consequences, as they will likely get a 1099-C. </p>
<p>I second Thom- get the short sale package in ASAP. Things have a way of turning south for a seller quick- the review process takes a long time and you don't want to battle a foreclosure while trying to close.</p>
<p> </p> Jerrold,
It sounds to me like…tag:shortsalesuperstars.com,2012-02-19:3468065:Comment:2143792012-02-19T19:37:30.337ZThom Colby CA Brkr 888-391-5245http://shortsalesuperstars.com/profile/ThomColby
<p>Jerrold,</p>
<p>It sounds to me like a true hardship "loss of income" with no ability to service the debt. Is the owner unable to re-rent the vacant unit? What about movign teh daughter out and renting that unit as well? Quite frankly, if it were my client, I would submit the short sale request ASAP.</p>
<p> </p>
<p>Best of luck,</p>
<p><br/>Thom</p>
<p>Jerrold,</p>
<p>It sounds to me like a true hardship "loss of income" with no ability to service the debt. Is the owner unable to re-rent the vacant unit? What about movign teh daughter out and renting that unit as well? Quite frankly, if it were my client, I would submit the short sale request ASAP.</p>
<p> </p>
<p>Best of luck,</p>
<p><br/>Thom</p> Jerrold, I am in IL too. PM m…tag:shortsalesuperstars.com,2012-02-19:3468065:Comment:2141942012-02-19T19:23:52.700ZJoseph Alfehttp://shortsalesuperstars.com/profile/JosephAlfe
<p>Jerrold, I am in IL too. PM me and I can help you with this. Larry, that's not really an option that will bear any fruit. What would you ask the lender?</p>
<p>Jerrold, I am in IL too. PM me and I can help you with this. Larry, that's not really an option that will bear any fruit. What would you ask the lender?</p> it really doesn't matter at a…tag:shortsalesuperstars.com,2012-02-19:3468065:Comment:2140702012-02-19T19:22:11.229ZJoseph Alfehttp://shortsalesuperstars.com/profile/JosephAlfe
<p>it really doesn't matter at all. I am 18/18 on investor properties the last few months, all with full releases. Sellers have income and assets, so in some cases there were cash contributions ranging from $1,000 to $7,500.</p>
<p>it really doesn't matter at all. I am 18/18 on investor properties the last few months, all with full releases. Sellers have income and assets, so in some cases there were cash contributions ranging from $1,000 to $7,500.</p>