Many of our short sellers wonder when they need to move out of their home. Just as in a traditional sale, the home needs to be broom clean and vacant at close for the new owners.
Whether you should move out earlier in a short sale situation is a little more tricky. Sometimes moving during your sale is necessary such as in an employment relocation. These types of moves are generally accepted by lenders, however moving out too early generally works against you in a short sale situation:
- If you have an FHA backed loan and the lender deems that you have “abandoned” the property aka moved out without good reason – you will be denied for any workout option including a short sale.
- Relocation incentives ranging from $1,500 to $10,000 are available through some short sale programs. If you no longer occupy the home, you will lose any relocation that would have been available to you.
- Property maintenance – You are responsible for maintaining and securing your home until closing whether you live in it or not. This means that you will need to maintain utilities and heat for a vacant property, creating extra expenses. You will also find that most homeowners insurance companies will be hesitant to insure a vacant home, leaving you liable for anything that happens in the home.
Last Updated on September 15, 2017 by Minna Reid