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Tuesday, January 25, 2011

Short Sales: Can I Short Sale My Upside Down Home?

Seattle and Tacoma,WA –Hi! This is Nathan Olotoa with www.59days2sold.com
and www.seattleshortsalesagent.com and I specialize in short sales in the Tacoma and Seattle areas.

– The Stop Foreclosure Institute recently received a question from Brent. Here is Brent's Question.

Seattle-Tacoma, WA "If we are not behind on our mortgage but can't sell our home through a normal sale because we don't have any equity, can we still qualify for a short sale?

We would like to sell this property and get another property where we are not upside down. Thank you!” asked Brent.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here was our answer. Brent, there is actually a federal short sale program that encourages what you would like to do. It is called the FHA 4155 loan program.

It allows a person that is short selling their house to buy another one right away. However, there are a few caveats.

We have been told that you will need the following. (Guidelines can change at any time, so make sure you check them with a Mortgage Professional familiar with the program.)

A. A 640 FICO credit score or better.

B. You must be current on all installment payments and on your mortgage.

C. No bankruptcy or foreclosure on your credit in the last 7 years.

D. The home you are purchasing must be inferior to the one you are selling. I don’t know the exact guidelines, but I think it means it is a smaller home, or it has less bedrooms or a lower price.

E. You will need the 3.5% down payment for the new purchase.

The biggest hurdle will be getting your current lender to approve the short sale. Most lenders will approve a short sale. It just takes time and a little patience.

But, it is a great opportunity to move on from your upside down property and start building equity elsewhere.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at asknate@kw.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 253-310-1177.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Nathan Olotoa.

Nathan is a Real Estate Broker at Keller Williams-Tacoma. Short Sales Realtor

Phone: 253-310-1177. asknate@kw.com.

Listed to Sold in 59 days or less

View My homes for sale at www.59days2sold.com To view my previous blog posts please visit www.seattleshortsalesagent.com.

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Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Nathan Olotoa's personal views and do not reflect the views of Keller Williams-Tacoma.

This information on Short Sales: Can I Short Sale My Upside Down Home is provided as a courtesy to our viewers to help them make informed decisions.

Monday, January 24, 2011

Short Sales: Can I Short Sale If I Don’t Have A Normal Hardship?

Seattle and Tacoma,WA –Hi! This is Nathan Olotoa with www.59days2sold.com and www.Seattleshortsalesagent.com and I specialize in short sales in the Tacoma and Seattle areas. The Stop Foreclosure Institute recently received a question from Chad. Here is Chad's Question.

"I own a condo in Hackensack, New Jersey. I purchased in 2007, pre-construction for $375k and have a mortgage balance of $337k.

I have been trying to sell my unit for upwards of 2 years with no success. I have been unable to refinance because my unit is worth much less than the balance on my mortgage.

I have been denied a loan modification. I must move by this summer and do not want to make a penny on the sale. I just want to be rid of this property.

I have been advised that I would not get approved for a short sale because I do not have a financial hardship. However, I am not sure this is correct. I am seeking advice as to what my options are.” said Chad.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here was our answer. If you are moving for a job transfer then, then you have a legitimate hardship. I do know this.

If you move in 6 months and stop making the payments, then something will need to be done. The bank will either approve a short sale or foreclose on your property.

You could try to rent the unit out and write a check every month to cover the payments. But, then you would be limping along for years until the market improved and you can sell.

But, what if things get worse? What if a tenant trashes your condo and you can’t afford the repair bill? No one wants to rent a trashed condo.

You would have a hard time covering the payments then and even risk a foreclosure. I would start the short sale process today. There is a good chance that your lender would approve a short sale today.

If not, then you could convince them to approve it later, after you have moved. Some short sale negotiators are easy to work with and will approve the short sale.

Others might play hardball and want a promissory note from you. It’s all negotiations. The sooner you start the negotiations, the sooner you can move on with your life.