One of the most frequent questions from a potential short sale seller is: “Should (or can) I move out of the house I want to short sale? ” Handling this correctly could mean the difference between a successful SW Michigan short sale transaction and an unsuccessful short sale.
In Michigan, the lender has the right to shorten the redemption period from 6 months (or longer) to 30 days if they deem the property “abandoned”. What is “abandoned”? Well, that seems to be a grey area. The only thing a lender needs to do is to post a notice on the house that it’s abandoned (even if it’s not) and allow the homeowner 15 days to respond. If they don’t respond, it can be declared abandoned, even if it is not.
Even if the house is listed and there is a REALTOR sign in the yard the lender might still declare it abandoned.
So, how to you avoid this? It’s tough to avoid, but you do need strategies – all of which will take time. Here are some ideas.
1) If you are trying to short sell your home, don’t move.
2) If you must move, make sure that someone checks the house weekly for any postings.
3) Make sure you read and send your short sale REALTOR copies of everything they get from their lender and the lender’s attorney.
If a note does get posted on the door it is essential that the homeowner write a letter as instructed in the posting stating the house is not abandoned. This should be sent via certified mail.
Even with all of this caution and planning, you may still lose the ability to short sale the home because of the “abandonment rule”, but now you know some of the steps to take to make it most possible to be able to short sell your Kalamazoo home.
For the best chances of success with a short sale in Kalamazoo or other cities in SW Michigan, contact the Veenstra Team (269-350-5514) as soon as you realize that you are not able to make the payments on the house. We offer free advice, and all our short sale services are free. Our consultations are confidential. There is no reason to wait to get the advice that you need to make the best decisions for you.