Question: I live in Orlando and I recently got engaged. I am now in a position where I would like to move in with my fiance and sell my property. I have 2 properties that I would like to short sell, my house and a condo. Both properties are obviously not worth what they used to be and I can’t sell either of them for what I owe. I just got a general appraisal on the house today and it is approximately $56,000 less than what I currently owe. I have called both of my banks and gotten the requirements of short sell. My banks are BOA for the house and Wells Fargo for the condo. The bank states that your mortgage should be 31% of your income, mine is closer to 55%. The problem is I believe that in order to sell both properties, I will have to do 3-short sells at one time, one for my house, one for the condo and one for the line of credit or 2nd mortgage for the condo in order to prove hardship. Does the fact that my mortgage is 55% of my income help me prove financial hardship? Can I short sell my condo to my fiance before we get married? Should I consult a real estate attorney or an agent for help? Any help on this would be greatly appreciated. Thank you!
Answer: -55% is a lot, but may not prove financial hardship, unless you’ve had a loss in income or increase in bills or something like that. You can short sell you home to anyone you want as long as they are not related, “arms length” does have some grey area, but that’s your call. You also risk not getting the short sale approved in which then your home will go to auction and then the 2nd may file a judgment against you for the amount they lost. But if that’s your best option then, yes a short sale is a great route to go. I would definitely seek help from an agent if you need to find some buyers…or investors in your area would probably love to do a short sale on them.