Interested in Processing The Strategic Short Sale Without a Hardship? Contact The Expert

Strategic Short Sale
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Short Sale Without a Hardship

The biggest motivation of many homeowners who want to opt for a strategic short sale process is that their mortgage balance has suddenly become greater than the value of their home. Essentially, they owe more than their homes are worth. Instead of waiting and being forced by bank to do a short sale, they chose strategic short sale instead of waiting for their home to recover value. In this way, possibly they can protect their credit rating at the same time.

Typically speaking about doing a short sale, the sellers need to prove a hardship, but there are a number of ways do a short sale without a hardship. It is important to understand that there is no guarantee that a bank will accept the strategic short sale and release the loan under circumstances that involve a hardship. There are lesser chances that a bank accepts a short sale without a hardship. Every bank is different and also investor guidelines vary so it may be difficult to close a strategic short sale.

What is a Short Sale Hardship?

“A hardship is a situation that is beyond your control that has resulted in a situation where you can no longer afford to make mortgage payments.”

It could be a family member who supports you, financially or emotionally or both, or on whom you rely for support who has suffered a hardship such as:

Unemployment, Reduced income (new job, partner’s loss of job, pay cut), Illness or medical emergency, Job transfer (voluntary or involuntary), Divorce, separation or marital difficulties, Exotic mortgage terms, Military service, Death in the family, Increased expenses and excessive debt, Unexpected repairs or home maintenance

How to Process the Strategic Short Sale?

The biggest motivator for many sellers who want to process a strategic short sale without a hardship is that their mortgage balances are generally higher than the value of their homes. They owe more than their homes are worth. These sellers do not want to go through foreclosure for a variety of reasons, and they hope to protect their credit rating to some extent.

The simple solution would be to do a loan modification that reduces the principal balance below the home’s market value. In effect, this would be selling the short sale home back to its owner, thereby letting the owner stay in the home. That would make a lot of sense, but no, that’s not how our system in the United States works.

Strategic Short Sale Process

To process a strategic short sale, the seller must sell and move, rent for a few years and then buy a home very similar to or perhaps even nicer than the home sellers already had.

The easiest way to do a short sale without hardship is to write a strong and honest hardship letter. Put some thought into it. If you owned a home in South Dakota and your job transferred to Hawaii, that’s a hardship, even though some people might consider Hawaii to be one of the best places to live in America.

 Here are other steps:

Will Banks Let Sellers Walk Away Without a Hardship?

The answers are yes and sometimes no. More often than not, the short sale is granted. A hardship is not always necessary because sometimes the bank prefers to dump the property than taking risk of foreclosure.

It is advised to contact an experienced short sale expert to process a short sale because it is really complicated process and requires good understanding about the process.

Unable To Make Mortgage Payments? Process a Strategic Short Sale