For short sale, the lender looks at seller’s hardship to accept short sale, but in recent months, many homeowners in California have done short sale without any real hardship.
What is hardship?
Hardship means when the owner cannot afford to pay their mortgage due to financial or emotional distress. Lenders will look at any of these reasonable hardships:
- Divorce
- Death
- Illness or permanent injury
- Job transfer
- Marital difficulties
- Reduce income
- Increase in expenses
- Loss of job
What is Strategic Short Sale?
A strategic short sale is a situation where the owner decides to sell their house even when they are able to make payments due to upside-down on the property value. They may have slight hardship or no hardship at all.
Will all lenders accept short sale?
Well, it all depends on lenders whether they want to accept it or not. They may sometime ask for contribution in order to accept this short sale. There’s no guarantee that bank will accept short sale. But I know that short sale is better than foreclosure for not only the lenders, it is good for the neighborhood to maintain the value and also for homeowners so that they can avoid foreclosure.
What should you do when you decide to do short sale?
Work with an experienced strategic short sale agent. Also check with your attorney and CPA for any legal and tax consequences. Work with your short sale agent to market it aggressively to get the highest possible price for your house within a short period of time. Your agent can help you to complete the short sale paperwork and hardship letter (this is most important step in strategic short sale).
If you are in bay area and would like to know more about short sale and how I can help you, please call me at 510-366-9405 or click here to send me an email.
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