Your property may be upside down and you may be looking to get out from underneath it. You’re not in dire financial straights, but things could be better and the monthly payments certainly aren’t helping. If this sounds like you, you may be asking if you could short sell your home.
The short (no pun intended) answer is probably not. Short selling requires consent from both the bank and the borrower, and in order to get the bank’s consent, you’ll have to present a complete financial picture of your current situation. If you still have significant money in the bank, that’s most likely a giant roadblock to short selling. And if you’re considering some form of doctoring financial statements, perhaps by withdrawing your savings into cash, don’t do it. It’s a gamble you don’t want to make because if you get caught, then you’ve committed fraud. In that situation, you’ll have much bigger problems than an upside down mortgage.
There are situations when this is an acceptable course of action, and the best thing to do is to consult a real estate attorney regarding your options. You’re not limited to short sell and foreclosure; remember, the banks want to keep payments coming in if possible. Because of this, the best thing to do is to contact your bank, claim financial hardship (life situation change, job loss, etc.) and attempt to renegotiate the terms of your mortgage.
Just remember there are options. Utilize all options before giving up. Call your trusted Realtor.
Israel Gonzalez RDCPro, CDPE
Real Estate Broker
831-636-8858
http://www.bestreohomes.com http://nicereohomes.com
The views published here are the opinions of the writer and are not a substitute for legal counsel.
