Q & A: Can You Flip a Short Sale?

---

I was recently looking to purchase a home that I would be able to flip. I saw a short sale that I am still in negotiations on with the bank. Someone mentioned that a short sale can't be flipped. Is that true? How long does someone have to own the home before they can sell?

Technically, you should be able to flip the house as the seller, but the question is going to be whether the person purchasing from you can buy the house.  If they are buying in cash there should be no restriction, but many lenders have guidelines with regard to purchasing a flip transaction.  The challenges arise when the house is owned less than six months. Many lenders have restrictions on purchasing a home previously bought less than six months ago, although some can do it in as little as three months. It may be a great investment, you just need to be careful about selling to the extent you make sure these potential restrictions are properly communicated to a prospective buyer so they can work with their lender.

My husband and I own a home together and are currently getting divorced. I just learned that he has not been paying the mortgage for months. I have had no knowledge of this and do not want it to affect my ability to get another mortgage or my credit score. What can I do?

This might actually be a problem. If you are on the mortgage with your (soon to be) ex-husband, you are jointly responsible for the payment and it will reflect as such on your credit report. Late payments on a mortgage, especially recent late payments, or being behind on the mortgage as of today, makes it very difficult to secure a mortgage for yourself. Also, your credit score will be significantly impacted if you are on the mortgage. Unfortunately, this may be a situation where you might need to rent for at least a year before being in a better position to purchase a home.

I am relocating abroad for work for at least six months to a year. How do I go about subletting my apartment for the time in which I am gone? I live in a co-op.

Before you begin the sub-let process, you should check your co-op's house rules in connection with subletting. Not all co-ops permit sublet, and those that do, usually have specific rules as to length of the lease term, Sublet Application Package and related fees to both the shareholder and tenant. If your building's rules permit a six-month sublet, you may elect to hire a real estate professional who can assist you in trying to find a qualified tenant for your home. Often the House Rules for Tenants are not the same as for the shareholders, and your agent will need to know what is permitted and what is not.

I signed a listing agreement for six months with an agent. We recently had a serious argument and no longer want this person to be responsible for the sale of my house. Can I cancel the agreement?

Please review the terms and conditions of your Listing Agreement with respect to early termination of services. In addition, set up a meeting with the principal of the Brokerage Agency and workout a termination of service. You should consult with a real estate attorney about this.

Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to; Reporters@WPCnews.com