We have helped many investor types who have renters in there property that are severely upside down, short sale there place.
What we like to do is time it so that the short sale is almost done by the time the lease is up. To be on the safe side, we like to start the short sale 3 months before the end of the lease. So if your lease was up September 1. We would start the short sale with the sellers missed payment June 1. Then when they are technically late June 15th, we would list the property and try to secure a buyer quickly. This process takes cooperation from your renters. We work with them so this is not a terrible inconvenience.
So these 3 months that the seller is not paying there mortgage, they are collecting rent. This rent should cover in most cases the cash contribution that the bank is going to require at closing. Most of our sellers are having to bring anywhere from 0-$7,000 to closing. Yes we have had clients bring nothing and actually we have had a few actually get paid a couple thousand to do the short sale! Our typical short sales are getting done in 90 days. That is 90 days from contract ratification with the buyer.
If you would like to chat about your situation and see what your options are email me at nate@1245team.com
