Reader's Question:
I own a home in a nice part of Glendale. I owe the lender a bit over a million dollars on the home. The house I believe is worth approximately $900,000. My wife was already told that she is losing her job at the end of the year. Do you think the lender would hear our case and consider a short sale?
Christian's Response:
First and foremost, I am sorry to hear that your wife is losing her job. Nobody ever wishes that on anyone but unfortunately it is becoming a more and more familiar story. Half my clients today are unemployed. You are not alone. According to your situation and if the numbers are accurate, a lender would be nuts not to consider your situation.
I own a home in a nice part of Glendale. I owe the lender a bit over a million dollars on the home. The house I believe is worth approximately $900,000. My wife was already told that she is losing her job at the end of the year. Do you think the lender would hear our case and consider a short sale?
Christian's Response:
First and foremost, I am sorry to hear that your wife is losing her job. Nobody ever wishes that on anyone but unfortunately it is becoming a more and more familiar story. Half my clients today are unemployed. You are not alone. According to your situation and if the numbers are accurate, a lender would be nuts not to consider your situation.
In order to achieve short sale approval, one of the conditions deemed necessary is to demonstrate a financial hardship to the lender. If your wife lost her job or is just about to, there might be your hardship. Any experienced and qualified Realtor mitigating a loan of 1 million dollars and requesting a 100k loss should be successfully completed with his or her eyes closed as long as the value of the home is truly $900k and other short sale requirements are met.
A 10% loss severity is a very small loss for lenders today. Small losses of this amount are a breeze. To any experienced industry professional, this short sale request should be a walk in the park blindfolded. Most of my negotiations today involve a 30% - 40%, if not 50% loss to the lender and we successfully mitigate them.
Best of luck to you. You should be fine.
