Can I short sale my house because of a job transfer?

Question

I live in Arizona, my husband is getting a job transfer out of state. We currently own our home and we have never been late on a payment. I'm guessing we are about $100k flipped in our home. What are our chances of our lender GMAC agreeing to a short sale because of a job transfer.

There is no way we can make 2 house payments. Yes, we can probably rent our house out but not for the amount of what we currently pay every month.

Answer 1

GMAC and other lenders are not concerned with your job transfer.  You are best to rent the current house out for less than your payment, absorb the difference, and buy or rent something less expensive in your new location.

If you short sell this house, you won't need to worry about making two house payments.  You won't qualify for another mortgage for at least three years due to the ding on your credit score.

Answer 2

Your lender will agree or not.  The fact that your husband is getting transferred will not matter to the lender.

Answer 3

not good at that amount, however..

Qualifications for a Short Sale

Before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer yes to all four requirements, you may not qualify for a short sale.

The Home's Market Value Has Dropped.

Hard comparable sales must substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include a prepayment penalty.

The Mortgage is in or Near Default Status.

It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass.

The Seller Has Fallen on Hard Times.

The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.

A few examples that do NOT constitute a hardship are:

Bad purchase decisions. Blowing your paycheck on a home theater system with surround sound does not qualify as a hardship.

Unhappy with the neighbors. Even if every home on your block has turned into pot growing houses, that will not qualify as a hardship.

Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family.

Pregnancy. Increasing the size of your family or starting a family is not considered a hardship.

Moving into an apartment. If you decide to move out of your home, that is a lifestyle decision and not a very good reason to abandon your home.

Examples of hardship are:

Unemployment

Divorce

Medical emergency / sudden illness

Bankruptcy

Death

The Seller Has No Assets

The lender will probably want to see a copy of the seller's tax returns and / or a financial statement. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference. Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.

For example, if the seller has cash in a savings account, owns other real estate, stocks, bonds or even IRA accounts, the lender will most likely determine that the seller has assets. However, the lender might discount the amount the seller is required to pay back.

Many entities profit from short sales, but there is no seller short sale profit.

Answer 4

What I personally would do is list it to sell with a Realtor, ask him/her what they think the value is (with a neighborhood market analysis), then if you have the equity in the house to do this, tell them you want to list it 5K lower than what they think it's worth. A house listed lower than what it should go for will fly. I listed a house this way and it was under contract in 1 week, and 5 weeks after I took the listing it was closed and everyone walked away happy. If you really don't want 2 mortgages, I would do this. You could always wait to buy a house in your new city until everyone his one has sold (rent an apartment on a month-to-month basis) Also, if you do NOT have the equity to sell the house the way I suggested, you could rent the house out for as much as what is normal in that area and pay your rent with that money, and just continue to pay the mortgage of your current (soon to be rent house) the same way you are now.

Banks only do short sales to benefit themselves...NOT you. You just need to price it right if you want it to sell quickly.