Has anyone done a short sale without Hardship????
I've been contacted by a potential Seller who has an investment property that is underwater. She wants to pursue a short sale to eliminate the monthly expense of the property but she is not delinquent, has no hardship, and is not in pre-foreclosure status. I'm not sure if I should pursue this if I won't be able to help the Seller get approved for a short sale There is a tenant on the property but the rent doesn't even cover the mortgage and insurance for the property. Seller has to pay out of pocket every month to cover all the expense for the property plus any maintenance. Has anyone come across this kind of situation and were you able to get a short sale approved by the lender? Is there a program for Sellers such as this individual? Please let me know. She is waiting for a response from me and I'm not sure what to say to her as I've never come across this before. Thanks!
Replies to This Discussion
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Permalink Reply by Shel-lee Davis on
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It all depends on who owns the loan and the specifics of situation. I have done these before, but usually there is no tenant in the property or they are about to move out and the owner would then be in imminent danger of default. I did do one, but this was a few years back when banks still had a few people in the loss mitigation department that understood loss mitigation, where the investor was just unloading properties due to negative cash flow and negative equity. They were all in California and they were all purchase money loans. Would love to see what others are experiencing.
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Permalink Reply by Stacey Haire on
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I was just declined a short sale by Wells/Freddie Mac identical to you file. Although the loan was not FHA, Freddie had purchased it, therefore the hardship had to fall within Freddie's guidelines. I was informed by Wells that had the investor been a private investor it stood a better chance of approval. In short, before processing, check the investor. This would have saved me three months.
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Permalink Reply by Ann Howard on
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Without a hardship, she will not qualify for a short sale unless she can show financial hardship. Maybe she could work with her lender and see if they can modify the loan.
The way her lender will look at it now, she has been making her payments, and unless a job change has occurred where she is making less, I don't see it happening.
Best of luck.
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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I wonder if you are posting this in the Bank of America short sale group because your seller has a loan with Bank of America? If so, this could very well be your seller's lucky day. It's even better -- like the kiss of a goose that laid a golden egg -- if the loan was once a Countrywide loan! It's not so good if the investor is Fannie Mae, although it's not impossible. What you need to do is ask your seller to call Bank of America and request a COOPERATIVE SHORT SALE. You can't initiate it. The seller will need to make that first call, but after that, it's a breeze.
This is not to say that halfway to closing, the bank won't sell the loan to somebody else or assign the servicing, in which case you're flat out of luck. Also, every once in a while, an investor might require financials for these, at least that's what I am told, but I probably closed 25 or 30 of these over the past couple of years -- no hardship letter required and no financials.
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Permalink Reply by Staci on
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Yes, she said that her lender is BOA. Thank you for that information! That at least shed some light on the issue.
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Permalink Reply by Jeff Payne on
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Yes we do them quite often with condo owners
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