I am sick of writing a check every single month to cover the loss. I would like to short sale these properties if possible. I am just wondering if the banks would allow it. What do you think?
Well Dave, there is no answer that is correct 100 percent of the time. In your situation, it depends on your lender. Many lenders will allow a short sale. Others won’t talk to you until you are behind on the payments. I do know someone who is in a situation very similar to yours and is short selling several properties.
He has substantial assets and a good income. Some of the banks were easy to work with. He was able to stay current on the payments until they approved the short sale. However, some of the other banks weren't as easy to work with. He had to stop making payments before they would talk to him. It all depends on the bank and how much you want to short sale. I know several people that write big checks every month just trying to stay afloat on their rental properties.
If you aren't planning on buying another house for 2-3 years, and want to stop the bleeding, then a short sale is a great option. If I were you, then I would attempt a short sale. It doesn't cost you any money. I don’t see how you can lose. If they don’t approve the short sale, then you are exactly where you are at today.