I got a call yesterday from an investor to check whether he can short sale his investment property, which is in Bay Area, California. This is a common question from the investors who has second home or investment properties and many investor owners are finding themselves in similar situation.
I’m sorry to hear about his situation, he is having financial difficulty and the tenant is not paying the rent also for the past couple of months (they also lost their job and having difficulty in paying rent). The renters are planning to move by end this month to their relative’s house. The investor checked with his lender for loan modification but didn’t qualify for loan modification. He tried everything to keep paying but not his only option is short sale to avoid the foreclosure.
His house is located in East Bay area and considering short sale. To answer his question about doing short sale on investment property, the answer is “Yes”, you can do short sale even if it’s your investment property. The lender pays all the costing cost and the realtor fee is also paid by the lender in short sale, so it won’t cost you anything.
For short sale, your lender needs to agree for short sale, so it’s crucial that you work with a short sale specialist in your short sale transaction who knows how to handle the short sale situation. You need to provide your financial documents and hardship letter to prove that you are in some kind of hardship to allow for short sale.
Short sale takes time so it’s important that you cooperate with your realtor with all the paper works on time. You may get 1099-C but if you are insolvent then you can write off any deficiency from your taxes, well as said that let me tell you this also that I’m not an accountant so consult with your accountant for your tax related questions before doing short sale. So, in summary you can do short sale on your investment property or second home but always work with an experienced short sale agent in negotiating short sale with lender.
If you are an investor in bay area (Santa Clara, San Jose, Sunnyvale, San Mateo, Fremont, Newark, Union City, Hayward, Castro Valley, San Leandro, San Lorenzo, Palo Alto, Dublin, San Ramon, Pleasanton, Tracy, Mountain House, Brentwood, Stockton or near by cities) and having hardship and wants to discuss the options to avoid foreclosure then you can call me at 510-366-9405 – Your Bay Area Short Sale Specialist and I would be glad to help you in short sale.
Similar Posts:
- I am Paying My Mortgage Payment From My Savings And Credit Cards
- Treasury Released Guidance to Ease Short Sale
- I’m Facing Foreclosure, What options do I have to save my house from foreclosure?
- What Should I Do If My Home Has Negative Equity
- Should I Do Loan Modification Or Short Sale?
