Is A Short Sale Different When It’s A Rental?

 
While working on a Sacramento Short Sale for an investor who owns property that they do not live in but instead rents I found negotiating with the bank crucial in trying to keep the costs as low as possible that the bank requires the investor to pay in order to approve the Short Sale. Investors do not qualify for loan modifications either in most cases. Many investors have found themselves on hard times as well in Sacramento.  It’s important to realize that investment property is handled differently from owner occupied property.

With double digit unemployment,  job loss, divorce and illness there are many who are having a hard time.

The investors referenced in the video have settled on paying $2,500 to the Mortgage Insurance Company with the bank indicating the loan amount has been satisfied.  We are awaiting the Short Sale approval and I will be checking to make sure the bank has that verbiage in the approval. 

As a CDPE (Certified Distressed Property Expert),  not only is it important to negotiate the Short Sale in the best interest of the seller but it is essential to keep the buyer’s agent informed along the way.  I take great pride that each week I keep the buyer’s Realtor ® updated and informed of the Short Sale.  Everyone has a stake in this Short Sale.

As always, it’s a good idea to check with your CPA and an attorney for what is considered the best action for you to take with your investment property if you are an investor. Remember, that a 1099C may be issued by law for reporting any principal balance on the loan that was written off as per the IRS.

Soon, there will be a lucky home buyer who will have a beautiful home that my sellers have made sure is clean and ready for them to occupy.  It’s so nice when we all work together.

*** UPDATE***

Short Sale approval for investor in record time – 36 days!!!

Other Real Estate Video Tips:

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