Can I Short Sale A Home I Don't Live In?
Short sale is an act of financial hardship. The lender must believe the financial hardship case and approve of the short sale before anything can actually happen. Because of that, it is very unlikely that you can do a short sale for a secondary or investment home. However, if you are currently living elsewhere out of financial hardship -- a relative or a more affordable apartment -- then you can attempt to do a short sale, as your circumstances back up your case for financial hardship.
If you've already missed payments and are using that money towards a rent, the bank will probably take a look at the difference between your monthly rent and the mortgage. If they are similar and the bank feels you can make payments on your mortgage, there may be some difficulty. However, if you've experienced a rough financial go, such as losing your job and moving in with relatives, that provides a stronger case for short selling.
While the bank is the ultimate gatekeeper in this situation, you've got one thing on your side -- the bank wants to keep payments moving in. Foreclosures are a costly and time-consuming process, and if there's a way to transition smoothly, either through loan modification or short sale, most lenders would prefer that steady guarantee of payment rather than dealing with an indefinite period of non-payment.
Israel and Rachel Gonzalez RDCPro, CDPE
Real Estate Broker
831-636-8858
www.bestreohomes.com www.nicereohomes.com
The views published here are the opinions of the writer and are not a substitute for legal counsel.