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Can a person that is not behind on their mortgage payments still do a short sale?
Anonymous2 views3 answers
We are not behind on our mortgage payments but would like to do a short sale on our home.
it is a manufactured home and we are losing our income so it is going to be really hard
to keep our payments up. But we do not want to lose our good credit. We are under water on
the equity in the house. We owe a second mortgage on it to. so all in all we owe about.
$87,000.00. Can we do a short sale anyway on the house?
A short sale has nothing to do with being in foreclosure or not, it's based on the balance of the loan versus the value of the home. You can certainly short sale.
It sounds like you need to hire a lawyer to do this as you have a second mortgage deal with as well that you need a release from.
The Answer is yes-- usually! There is nothing preventing you from applying for a short sale while you are current on your mortgage. Most lenders will want to see some type of hardship before they will approve a short sale. If you are in default on your mortgage payments, the hardship is obvious. If not, most lenders will want to see that you are in "imminent risk of default"- i.e. you are about to have a drop in income or you are moving because of your job. You should contact an attorney to review your options
A short sale does not require you to stop paying your mortgage but does require you to evidence a hardship and a property that is upside down. In other words you owe the lender more then the house is worth. Many attorneys like myself that process short sales havr programs that allow us to run your numbers and qualify you. Plus the relocation assistance that the lenders pay you has increased to $10,000.
Speak to an attorney to assist you.
