You Can Keep a Short Sale Off Your Credit Report
There are short sale sellers in Sacramento who do not know that if they fit the guidelines, it is possible to do a short sale, be current on your mortgage payments, and NOT have a short sale show up on your credit report after closing. In fact, there can be no ding to credit whatsoever and a seller can go out the next day and buy a new home, if she so desires. They don’t know this because a) their Sacramento short sale agent doesn’t know it, or b) their short sale agent doesn’t want to bother with it because the agent just wants to close the deal the fastest and easiest way possible.
Everybody knows that if a seller is in default, that short sale has a greater chance of being approved, even if there is no hardship. That’s the easy road for lots of agents with short vision. They tell their sellers to stop making mortgage payments so they can do the short sale, but that is not always necessary.
Granted, I don’t have a lot of sellers who fit the parameters to be current, but when it’s a possibility, it’s often worth it to give it a shot. I have to do what is best for my sellers — as hokey as that might sound to some of you, it’s the truth.
Sometimes, it doesn’t work out. When it doesn’t, then the alternative is to go into default. Of course, the bank won’t tell you that. The bank will almost always never directly say that a seller needs to stop making her mortgage payment. Think about being a shareholder of that bank. Do you want that bank telling customers to go into default? No, you don’t. A bank will instead say there is no hardship.
You will look at the hardship letter you wrote and say yes, there is a hardship. What is wrong? The key is the seller is not in default. Stop paying at that point and, when the seller is 30 to 60 days in arrears, that short sale will most likely get approved. But if you want to try to do a short sale while you are current, hire a smart Sacramento short sale agent who knows how to do it.