Dan,

I currently have a listing that is not selling & I believe we have it priced a liitle high due to the fact that my clients would owe more than the house is worth, if we lowered the price they would have to owe money at closing. They are also moving to Texas, the husband is already there. Would this be a good canidate for a short sale?

Jon Gillman

I have read your question. Here is your criteria:

1. Does the borrower have the assets to pay the difference?
2. Does the borrower have to sell, no other options?
3. Does the borrower have a verifiable hardship?
4. Is the borrower prepared to go into foreclosure to move? Remember short sale is a possible alternative to foreclosure.

Another possible alternative is to contact the second mortgage and ask for a "short payof" maybe the lender will accept less for the property if you client will sign a promissory note to pay the difference over the course of a few years.

Always good to check with the lender to see what options are available, most times customer services will not know, ask for collections or loss mitigation.