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Real Estate Short Sale Questions and Answers |
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Question: Is a short sale my only option?
I am looking to move back up north with my family. I can afford to make my condo payments (Barely) but I am unable to refinance right now for 2 reasons. I have a soft penalty and the condo is worth 10-20,000 less now then when I bought it for. I know I could sell and try to get a loan to finance the difference. I also don't know if a short sale is a possibility since I have negative equity in my property. I don't want to foreclose. I also dont want to try and rent a unit when I would back up in NH plus I would never be able to get enough rent to break even with the unit furnished. I am looking for solutions to try and get out of this situation I got myself in. ANy advice you can give me would be much appreciated.Answer: Even though you can't rent it out for what your payments ...
Even though you can't rent it out for what your payments are, a little something is better than a lot of nothing. I have an investment property that I pay $735 per month for, but it rents out for $600. So I pay the difference every month, and take it as a loss ontaxes every year.
If this is still not an option, then the short sale maybe your only hope. Get a Realtor to do a CMA on the property and contact your bank and let them know what's going on, even though you're current on your mortgage. See if they will take a short sale and not come after you for the deficiency.
Good Luck.Answer: offer it up as a lease to purchase
offer it up as a lease to purchaseQuestion: How long does it take to get an answer when putting in an offer on a house up for short sale?
I heard that when buying a house that is up for short sale, you wait a long time to get an answer from the bank on your offer. How long do people typically wait to see if their offer is approved?Answer: It could take I believe up too 60 days on Short sales.
I ...
It could take I believe up too 60 days on Short sales.
I actually just recently put an offer in on a short sale it took about 2 1/2 weeks for an answer.Answer: I have one dragging their heals for 90 days now.
I have ...
I have one dragging their heals for 90 days now.
I have also closed in an amazing 4 days afteroffer. (my broker is kick-ass!)
It depends on the bank and if you are offering more or less then the amount they originally agreed to with the seller.
If you keep with the previous agreement you will go fast, other wise hurry up and wait. It does not matter to me, I do not plan to live in these, but some people can't have open offers laying around on some persons desk.
Also, be careful to ASK the selling broker if the bank has cleared the short sale. They (seller) is supposed to do this before they offer the house for sale, but some people are jerks and just list it low for the sake fo being A-holes. If that is the case you will be waiting forever and it is not likely to happen, the bank would much rather foreclose then let the flake not paying their mortgage call the shots.
_________________
Added. LOL, I got edited! How funny! Any way, you need yourself a very good broker, the kind you want to give a standing ovation to. And remember, that houses are being short sold because the seller is a flake you refused to repay money they spend, you are dealing with someone with less then shiny ethics.Question: Risks of buying a house on short sale?
Hello guys,
I have seen 2 houses that are on short sale, since the value of the house has gone down because of the present real estate market. Are there any risks that a buyer has to take by buying such houses?
Any feedback willbe highly appreciated
Thanks
RamAnswer: not too sure, but just make sure you get an inspection....
not too sure, but just make sure you get an inspection....Answer: There are really two kinds of risk you could face, ...
There are really two kinds of risk you could face, transactional risk and value risk. There will be no more transactional risk than buying a non-short sale property if the current mortgage is properly released. This is something that your lawyer, the title company and your mortgage lender will make sure has happened.
The risk of value is more difficult. The amount of the short sale (difference between is owed and what the property is worth) is based on what YOU are paying. You want to be sure that the price is a current market price. An appraisal will be helpful to determine this.Answer: Risks? Maybe. You generally need to make that offer pretty ...
Risks? Maybe. You generally need to make that offer pretty close to what the asking price is. Then, be prepared to wait. And wait. And wait. If you are lucky it might take 30 days for a response from the bank. If you aren't lucky it could take 4 or 5 months and then just as you hear, they decide to foreclose on the house and put it up to auction and you have not only lost the house, but all of those months waiting to hear from the bank.
You would be better off buying a house that has already been foreclosed on and bought back by the bank. Then the banks want to get rid of the houses and will negotiate. But, you have no way of knowing what real condition the property is, and may end up with a house in need of much repair.
Sometimes it's better to look at the houses for sale that are not short sales, or bank sales, but cost a little more and need no repairs. In the long run, you'll save money, have time to enjoy your new home and not spend your weekends repairing and fixing.Question: If I short-sale my house for $200K and I owe $425K on my mortgage do I still have to pay the difference?
My mortgage is $325k 1st loan & $107k heloc. Do I still have to pay the difference to my lender? Can they go after me even if I qualify for debt forgiveness?Answer: You don't qualify for forgiveness with 2 loans.
I ...
You don't qualify for forgiveness with 2 loans.
I seriously doubt they will approve this short sale, but you can ask them what they are going to do while you are asking permission to short sale it in the first place.Answer: A short sale requires permission of the lender, otherwise ...
A short sale requires permission of the lender, otherwise you have defaulted on your loan, so without their permission you would have to pay the difference.
The good news is the IRS just ruled that you are not liable for taxes on the amount of the loan forgiven by your lender.Answer: Agree with #1. If you are 225k in the hole, is bankruptcy an ...
Agree with #1. If you are 225k in the hole, is bankruptcy an option? Or abandoning the home to the lender?Answer: You are still required to pay off your loans.
You are still required to pay off your loans.Answer: If it were to be approved, they can either 1) forgive the ...
If it were to be approved, they can either 1) forgive the debt (which would be doubtful) 2) issue you a 1099 for the difference and you would then claim it as income on your taxes or 3) they would set up something where you would owe them the difference. # 2 is the most likely. There has been a lot of talk about tax breaks to people who have this (the 1099 due to a short sale) or a 1099 due to a foreclosure.Answer: You've got a temporary reprieve in the tax code going ...
You've got a temporary reprieve in the tax code going for you. If you short sell, you won't have to pay taxes on the forgiven debt, courtesy of our government. Your credit will take a hit, but it could be a lot worse. Short sale is still better than foreclosure. Get a good realtor, verify the tax advice and good luck with it.Answer: You will have to pay income tax on the difference. In this ...
You will have to pay income tax on the difference. In this case 225k. That will be added to your income otherwise known as 1099. The odds of the bank taking a 225k hit are slim and none. If you owe that much more than it is worth I recommend letting it go to foreclosure and living there rent free for 8-9 months. That's assuming your credit is already shot.Answer: Yes. Unless your lender deems it totally uncollectable and ...
Yes. Unless your lender deems it totally uncollectable and agrees to write the loan off the books. If the lender writes off the loan make sure you get the original promissory note back.Answer: I also highly doubt they will accept this short sale... ...
I also highly doubt they will accept this short sale... There are 2 ways this could result...1. Either the lender will approve the short sale and you will be given a "gift" of the difference and will have to apply this towards your income next tax time, or 2. They will make you pay them the difference over time. When you call initially to have a short sale approved, as them how they handle things- most of the time it is the #1 situation, but you ofcourse want to make sure of this prior to putting yourself in any kinid of a situation.Question: In a short sale, can you ask the seller to pay for your closing cost??
Is it possible for the bank to pay for the buyers N.R.C.C?Answer: yes, upon bank aproval
yes, upon bank aprovalAnswer: You may ask, however it's not for sure that the lender ...
You may ask, however it's not for sure that the lender will approve it. The lender usually pays only for seller's closing cost, and agents commissions.
Good luckAnswer: Alex,
Both of the answers above are good, but also try to ...
Alex,
Both of the answers above are good, but also try to ask your realtor to see if he/she and the sellers agent will help cover some of your expenses as well. If you're not getting a loan, it should only be about $1000, anyways.Answer: You can ask, but 9 times out of 10 they will not pay any ...
You can ask, but 9 times out of 10 they will not pay any buyers concessions. |
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