short sales

Can you do a short sale, while you are current with all mortgage payments?

As the years pass, I see why this question as being one  of the most popular ones when it comes to short sales.
My answer has always been the same.
Outside of an attorney, no one should advise you to stop making your mortgage payments. That being said, it is now more than ever that banks have family accepted this motion
People will not make payments on an underwater mortgage. .they want options.
There are currently 11 million mortgages that are considered in trouble - behind on their payments
At the beginning , 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 the amount of potential foreclosures on the horizon. .and several other factors that could contribute to a potential default, many lenders are eager to accept short sales including Fannie Mae.
The best news is that you can buy another house in two short years!
Incentives for short sales are plentiful now a days . as a colleague's website in Florida reports:
"In an effort to aid struggling homeowners avoid foreclosure, JPMorgan Chase & Co and Wells Fargo & Co., are offering short-sale incentives to qualified homeowners.  They aren't releasing many of the details; however the buzz throughout Florida is that defaulting homeowners have received between $10,000 and $20,000 from the banks upon agreement of a short sale"
These are the signs of times. . 
If Your Home's Market Value Has Dropped. . 
You are current on your payments. .
What to do?
Is all about your hardship.
If you suspect reduced income for your future. . this is your opportunity to get rid of a bad investment.
You have until December 2012 to avoid any taxes on the forgiving amount.

The starting point of ALL SHORT SALES is when you first write a hardship letter. .if you have a compelling case. . DO IT! , regardless if you are current on your mortgage payments or not. 

I just finished a short sale in Maryland that the lender gave my client $274,672.22 forgiveness of debt.
Imagine that is $274,672.22 that my clients don't have to pay. . the best news is that this was a HAFA short sale and they received $3,000 relocation costs and a promise NO TO GO AFTER THEM WITH A DEFICIENCY JUDGEMENT!
They are already on my to do list 1 1/2 years to call them and advice them to buy a new property . .timely, they have a 2 year lease on their new home now. . just perfect timing!

What are some examples that do NOT constitute a hardship? 
Good question, every case is different but one thing you need to know is that a bad purchase decision in real estate does not constitute as a hardship. 
Buying a substitute home with bad intentions. . you plan to move to the new house and ask to do a short sale in the old one. .very astute form your part, except the ones approving short sales are not fifth graders!
Every case is different. .ask if you are not sure.



It is my sincere belief that homeowners need to find an advocate to represent them.  
Someone to seek the guidance, counsel, and services to make the right decisions based on facts and not emotions.  
An advocate that is educated, a licensed distressed property expert, a real estate broker that has the experience, the knowledge and the savvy to simply get you OFF the hook! Someone that will act totally in your best interests to help you find the best solution to the financial crisis you are facing now.
I believe I am that advocate for you for many reasons. .
With my experience and as a broker certified by different organizations to do short sales, I have developed a system that helps homeowners dealing with distressed properties. My team of Realtors, one assistant, an attorney and several supporting staff has developed long lasting relationships with these lenders that allow you to take advantage to short sale your property quickly and remove instantly bad mortgage debt. The strength of our experience and knowledge is invaluable to anyone seeking for a solution.

Fernando Herboso Broker for Herboso & Associates 240-426-5754

Is a Short Sale Right For Me?

What is a HAFA Short Sale?