I really like negotiating short sales in Baldwin County. Those of you living northward should think about this and buy a few investment properties of your own. Brokers down south need to know this to get deals done.
If the loan is owned by Fannie Mae or Freddie Mac, AND it is at least 30 days past due, then you get to use one of the “extra” hardship reasons to support the short sale.
As background, the fact that the entire economy collapsed in Baldwin County after hurricanes and oil spills, vacation rental rates are half of what they used to be, and you can’t make up negative cash flows out of your pocket, is COMPLETELY IRRELEVANT to most lenders. If you were laid off, had a business failure, suffered catastrophic health care expenses, lost a spouse to death or divorce, or overextended yourself in credit card debt, those are valid hardships. Investments in vacation or long-term rentals are not considered a “business,” so you can’t claim a business failure.
What you CAN claim, for properties in Baldwin County, is “Property or Employer Located in Federally Declared Disaster Area.”
You must be 30 days past due to claim this hardship. It is not one of the check-boxes on the standard hardship form. You must select “Other” and then fill in the reason quoted above.
Since 2007, Baldwin County has had SEVEN federal disaster declarations, ranging from hurricanes to droughts to the oil spill.
Knowing this, short sales just got a lot easier for you, at least in Baldwin County. Just over the line, in Escambia County, Florida, there have been FOUR federal disaster declarations.
Now that you know this, go back and re-read my last post, about how banks calculate foreclosure bid prices and what that means as far as really cheap short sale purchase prices. Next…Get to work! There are deals to be had, and money to be made!