"Can I Short Sale My Sacramento Home?" -Part 1

"I want to Short Sale my Sacramento home!"   I hear this statement often from homeowners in our Sacramento real estate market. 

But is it true, that anyone with an upside down mortgage, can qualify for a Short Sale? 

It is true that Sacramento Short Sales have overtaken Sacramento REO's, a trend that started towards the end of 2009, with a gap that is widening in 2010. 

The number of Sacramento Short Sale listings is almost two times the number of current Bank Owned listings.  Additionally, banks are beginning to figure out this whole Short Sale phenomoenon, and approvals seem to be coming relatively faster. 

That being said, the answer to the above question, is "No, not everyone can qualify for a Short Sale!"

"Why don't I qualify for a Short Sale?"  First, I'd like to say that a Short Sale is NOT a "get out of my mortgage free card".  What it is, is a legitimate option for homeowners who are underwater, and have a legitimate financial hardship, such as:

     -Job Loss or Reduction in Pay
     -Divorce
     -Illness
     -Disability
     -ARM Adjustment
     -Job Transfer

These are some of the more prominent reasons, but there are several others.  If a "would be" seller is underwater, but does not have a legitimate financial hardship, the options become limited to:

     -Wait For the Market to Recover
     -Bring Cash to Close
     -Let Property Go Into Foreclosure

Now, of these options, the first option is the likely candidate for most people, and though I would never recommend Foreclosure to anyone, it has become an option for some.  People who have the financial ability to make up the difference with cash are few, however I did have a seller bring $54,000 to close a listing I had in January. 

7 out of 10 homeowners go into Foreclosure without any viable intervention. 

If you are not sure where you stand, or feel you might be close to qualifying for a Sacramento Short Sale, and want a professional's opinion, give me the opportunity to provide a FREE evaluation of your current situation.  Otherwise, this is Part One of my Short Sale Series, designed to help homeowners avoid the "F" word ("Foreclosure" if your mind went somewhere else).  Email, or before surfing to the next page, call me.

Will Short Sale Work For You?