Short Sale Application with No Missed Payments

I Haven’t Missed Any Payments — Can I Apply for A Short Sale?

miss payments As a Santa Maria Short Sale Agent, I am asked this question by potential short sale sellers all the time. It is important for those inquiring to understand that even though they have not missed any payments, they may have an “imminent hardship” that would qualify them for a short sale. Imminent hardship means that your hardship may not be here today, but it is definitely on the horizon. And you do not have to currently be in default on your payments to apply for a short sale. A well documented imminent hardship may be enough.

For example, if you’ve received a pink slip or lay off notice, you may be able to make your mortgage payments now, but you know you will not be able to in the near future. Similarly, if you’ve been out of work or had a major reduction of income, but have been making payments out of your savings or by borrowing money, you may be current, but soon you will not be able to make your payments. Or, if you have filed for divorce or dissolution of a domestic partnership, and you need to sell because neither person can afford the payments separately, you may qualify for a short sale before you miss any payments due to an imminent hardship.

A short sale without missed payments is better for your credit than a short sale with a number of missed payments. You can always give your mortgage lender the opportunity to accept a short sale before you have missed any payments. If they decline the short sale, you can always re-apply once the hardship has arrived and you actually cannot make your payments. However, many lenders are now considering well documented “imminent hardship” short sale applications as they would rather be proactive in dealing with what will soon become a non performing asset on their books.

If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home, you should seek out an experienced short sale agent to guide you through this process. If you would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, Short Sale Agent and Certified Distressed Property Expert (CDPE) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.