Has anyone sold their home on a short sale?

Can you shed some light on how it works?

Re: Has anyone sold their home on a short sale?

I am working on a short sale now for a house in AZ

My client was unable to rent his house to cover his mortgage

He fell behind

The house isn't worth what he owes

I contacted a local real estate investor on his behalf. (He lives in CA)

He did some research on the house

And put an offer into the bank- the bank needs tons of paperwork- hardship letter, pay stubs, tax returns

We submited this on 9/1 along with the cash offer on the house

Now we are waiting

You have to be late to get most banks to take you seriously

You can fm me with questions

Re: Has anyone sold their home on a short sale?

If you own another house that you have equity in, you are going to have a very hard time convincing a bank you have to do a short sale.

You have to prove hardship like Beth said. Most likely be late on a few payments. Show you don't have enough income to cover the mortgage. Not easy.

Then if it gets approved, your credit gets whacked for 2-5 years. Not as bad as a foreclosure, but bad enough.

Re: Has anyone sold their home on a short sale?

I looked into it...because I owe more than my house is worth due to the market being the way it is.

However, you first have to miss one or two mortgage payments all together, before you can apply with the bank, so I wasn't willing to ruin my credit to get it done. So...I will have to wait it out or take the loss if I decide to sell now. Haven't decided yet...so I'm stuck here until I do.