Can I short sell a rental or vacation property?

Yes, it is possible to short sale a rental property or non-owner occupied property, which falls into the same category as vacation homes and vacant homes. This type of short sale is treated slightly different than an owner occupied short sale, but the same basic procedures apply. If you currently have tenants, one of the main differences between an owner occupied property and rental property are the rules and notifications you must give if you wish to evict before the short sale occurs. If your tenants are on a month-to-month lease and have lived in the property for more than a year, they must be given notice at least 60 days in advance. If they have lived in the property for less than a year they will need to be provided at least 30 days notice.

If your tenants are interested in purchasing the rental property themselves, they are allowed to as long as they qualify for a loan or have cash to purchase the home. If your tenants are family members or relatives then they are not allowed to purchase the home. Some property owners wish to allow their tenants to continue to live in the property even after the short sale completes. This is entirely possible and we have a network of investors who would purchase the property and rent it to the same tenants that live there now.

Every short sale situation is unique and complex. Because of this, it is important to talk to a qualified expert to ensure that you are aware and understand possible income tax owed in certain situations and some of the rules involved if you have tenants. We are available to speak with you for free at 1-800-760-9156