I’d say that you have plenty of time, and probably not have to move at all. Many real estate agents mislead sellers about the possibility of a short sale.
Lenders are not the borrower’s partner in the loan.
Just because the property has dropped in value, doesn’t mean that the borrower can complete a short sale, especially on a rental property.
A short sale hardship application package needs to be submitted to the lender. If the borrower has assets, they CAN afford the payments, although they may not want to pay them.
They probably won’t get approved. This is a rental property, not primary residence.
Your landlord probably has other assets, and until those are exhausted and it’s a hardship to pay, why should a short sale even be considered. They are getting rental income from you.
If a short sale was as easy as saying my property is worth less than I owe, I’ll do a short sale, there would be 10 times the number of properties on the market (or more)
Seems that some real estate agents don’t understand this.
Regardless of what a borrower tells the lender, as long as payments are being made there is NO problem in the lenders eyes.
Once the borrower misses a few payments, the service company will yawn and start some communication, it’s just another statistic to them.
Your landlord’s credit score will be whacked 150-200 points or more due to late payments.
A non neg am loan payment plus taxes & ins will cost them over $4,000 a month.
Like many other foolish people, your landlord got involved in a game that they didn’t understand the rules,playing way out of their league.
He took a gamble and lost, There is a price to pay.
If a short sale were accepted, I wonder if your landlord knows that they could get a 1099 from the lender, and that $120,000 +/- of debt relief will be reported as income to them, and they will owe income tax on that amount for the current year.
If I am wrong, you should get at least 60 days notice to move. If they let the property go into foreclosure, you may get a notice from loan servicer to start making rent payments to them. That’s when it gets sticky, because your rental agreement is with landlord.
Without knowing more about your landlord’s financial situation it’s hard to say, but if they own a primary home and have a job, some equity or other assets, I wouldn’t worry about filling out a change of address form anytime soon.
Not wanting to pay OR really not being able to pay is the issue.
