My situation: I have two condominiums located in Decatur, Georgia. One of them presently has a renter in it; the other needs repairs. The type of repairs is mold/mildew related, which can be very expensive. Instead of repairing it, I would rather sell it because I only have enough reserve money for about three more months to pay the mortgage on the property, then I may start going into default on the loan. My question is… since it is probable that expensive repairs are needed to be done to this property, will the bank/loss mitigation department allow me to sell the property for a value that is less than the amount of the loan owed if I start going into default? Can a sale like this be done to attempt to stop the bank from foreclosing on my property? Any information or advice relating to this area will be appreciated…
Sometimes. It depends on how convincing one can be to the loss mit reps. If they believe they will loose less money by short selling a property, they will. The problem is that most the time the HO has to go into foreclosure before they will humor the offer.
Good Morning!
Yes, this would be a situation where the Lender would be willing to negotiate with a Loss Mitigation Specialist (LMS), but you may need to first be late on at least one mortgage payment, depending on more details of your situation.
This is because the main reason lenders are willing to work with LMS is to get a sub-performing note back into a performing status, so that it is sellable to the secondary market.
A LMS, with some tough negotiating, may very well also be able to prove that your home would cost more for the Lender to put through foreclosure, because of the repair costs. Yet this depends on the amount of equity you have in your home, because if they would still make a profit, or at least seem the amount you owe back to them, off of 80% of the market value, then the Lender would be a little tougher to work with.
Bottom line - selling the home is not the ONLY option you have, but it would be wise for you to seek a consultant regarding this, because I would need more information than you’ve given me to give accurate advice.
Take care and good luck!
I’m not sure if this will qualify or not. Going to guess NO.
For a Short Sale,
First, you have to be late on your payment. Different lenders have different time requirements also.
To get SS approval from your lender, you will have to present a SS package. Search the forum, tons of info.
You must prove hardship, which includes the letter, pay stubs, bank statements and financials. The lender will have to have an appraisal or BPO on the property. The damage better be severe and real costly. You don’t eemn sure on the cost or actual extent of the damages. Get a licensed contractor quote also.
There are so so many factors, it is diificult to say for sure what they will do. I personally have never got a SS approval, when the homeowner wasn’t a hardship case.
You might want to state your mortgage servicer. There might be somone on here who has this kind of experience with your particular lender. And by chance, you ever get them to sell short based soley on the condition, please post it, I would love to know who.
good luck