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Real Estate Short Sale Questions and Answers |
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Question: When should we get a place?, ready to stop mortgage payment, will try short sale/ deed in leiu of foreclosure?
Upside down, can hardly make mortgage payment so we want to get out of this house. We'll try to sell it as short sale or deed in leiu of foreclosure with a Realtor. My question is should we stop making payment starting now and try to stay here for a few months while bank is processing short sale/ deed in leiu or should we get a place now before credit hit and move out in a few weeks? We don't even have 1st, last deposit for the rent so we would like to save some money as much as we can but if we wait until later to get a place, our credit will be ruined, right? When do our credit report show our non payment ? A month or later after the non payment? Thanks.Answer: Most banks report late payments within 30 days as well as ...
Most banks report late payments within 30 days as well as most major creditors. Have you tried talking to the bank to see if they would work with you on the payments? I have a rental I late payments is one of the first things that I check on the credit report. It tells me that if you can't pay your bills that you probably won't pay rent either.Answer: If you stop making the mortgage payments it is highly ...
If you stop making the mortgage payments it is highly unlikely that the lender will not go for a short sale or deed in lieu of foreclosure but will elect to foreclose.Answer: Why don't you call your lender and ask these questions. ...
Why don't you call your lender and ask these questions. Only they can tell you what they will actually do. I went through this in a similarly crappy real estate marked in the early 1990's. The bank would do NOTHING to help us. They would not accept a short payoff or a deed in lieu. We ended up claiming bankruptcy because the value of our 80k house had dropped to 60k and we HAD to move due to a loss of employment. (New job was 1 hour 40 mins away.) Bank couldn't have cared less, and the funny thing is the stupid house sat vacant for something like three years. Too bad - we had gotten a 60k offer and they did not want it. Dumb@sses!
I don't know what the bankruptcy laws are these days but you may be better off staying in the home as long as you can and then just letting them take it.
Sorry for your trouble. I know how hard it is - but you'll be ok in a few years! Trust me, things turn around.
PS and one more thing - try not to beat yourself up too much over this. Someone either A - grossly over appraised your home to get you financed (this is what happened to us) or B - put you into some type of interest only or other "junk" loan so they could make a buck. The lenders are only getting what they deserve. Trust me, they don't care about you at all - don't kill yourself trying to make one more payment. That $ means more to you than it ever will to them.
I don't usually preach that it's good to walk away from your debts but so many consumers are at an awful disadvantage when dealing with mortgage brokers and banks...I guess I just feel like most of the time it's the borrower who has been swindled - and the banks try to make YOU feel like dirt about it.
Hang in there.Answer: What state are you in? I may be able to help you and put ...
What state are you in? I may be able to help you and put money in your pocket.Question: Can the buyer of a short sale home, turn around and rent it back to the people that are short selling?
We are trying to short sale our house and were approached by some people from up north that wanted to buy some property here in Florida and rent it out or a copule of years. They offered to buy our short sale house if we would sign a 2 year lease and rent from them. At the end of the 2 years they would like to either move into the house, or sell it, possibly back to us at the appraised amount. Can this be done? I have only heard of this as an issue of having family buying a short sale so their family members can stay in their own house by renting it and then maybe buy it back when it could be afforded.Answer: Once they own it they can do whatever they want to with it.
Once they own it they can do whatever they want to with it.Answer: depends. Sometimes at your closing you will sign papers ...
depends. Sometimes at your closing you will sign papers stating that you will live in the house, and not be allowed to rent it. depends on the bank whose loaning the money.Answer: you have to look at the laws in your state. in california ...
you have to look at the laws in your state. in california you can if the new buyer is purchasing the property as an investment property. if he is purchasing as owner occupied he has to live in the property for 6 months afther that he can rent it out. Hope this helps.Answer: If it's an arms-length deal, yes it is legal.
It only ...
If it's an arms-length deal, yes it is legal.
It only works if their costs are low enough that you can afford to pay the rent and utilities. With a short sale and lower interest rates, this can happen sometimes.Answer: Legally speaking, yes.
However, the lender will be ...
Legally speaking, yes.
However, the lender will be looking closely at the proposed transaction, and are not required to agree to anything short of full payoff.
If they see this being done, they might just say "no".
Once the deal is done and they get what they've demanded, they'll never look at it again. Even if they do, as long as no one has lied to them about this aspect of the transaction, there's not much they could do then. If anyone DOES lie to them, though, it could be grounds to rescind their part of the deal and come after you for any deficiency, even if forgiven.
Don't offer the information, but if asked, don't lie.Answer: Hi
You has owner may rent to anyone you choose.
Hi
You has owner may rent to anyone you choose.Answer: Sounds to me like this would be the ideal scenario. You get ...
Sounds to me like this would be the ideal scenario. You get 2 years to stay in your home, repair credit ratings, and save money for the move!
Be careful, get an attorney, and GOOD LUCK!Question: I own 2 properties. if I short sale on the one in CA, can they come after my other house in CO?
I have a house in CA that is being rented. Adjustable Rate Mortgage - rate went up last summer and we're struggiling to keep it. We can't refi bc we owe more then its worth, and we don't live in the house. We live in our house in CO. some equity, but not enough to cover the shortage.
If we sell the CA house, most likly we will be short by about $50- $60k. Can they come after our CO property? does it put our CO property at risk?
Also - anyone have success renegotiating their mortgage? We don't want to have to sell and if we can lower our rate - we'll keep it. But at this point, we lose so much $ each month we're getting farther and father in debt.
Thanks!Answer: I found a great article, refer to the link below.
The ...
I found a great article, refer to the link below.
The lender may still go after you in court for their financial losses. And they often report deed in lieu on your credit report like a foreclosure. Sometimes you can negotiate this. But the simple fact is that lenders do not like doing deed in lieu of foreclosure, especially if you owe more than your house is worth. You have to realize that you think you have a problem (and you do), but your lender has a problem also.
And deed in lieu does not solve your home loan lender's problem. They are not in the business of owning houses. If they accept a deed in lieu they must fix up your house and market it and sell it. That is a problem for them. It costs them many tens of thousands of dollars in additional losses. You can solve that problem for them by doing a short sale. You sell the property to a buyer and the lender agrees to accept the proceeds that the buyer pays as full payment of the mortgage loan.
The mortgage lender may still come after you for their financial loss, unless you get them to agree otherwise. And the lender may make a bad report about you to the credit bureaus -- or they may not. You can negotiate all this. With short sales in lieu of foreclosure you are fixing the problem for yourself and for the mortgage company. They may take a loss but at least they get out of a non-performing loan. You get out from under and you can even buy another house with little or no money down and bad credit, if you know how to.
It is the best of all worlds given a tough situation.Answer: The quick answer is that they can't come after your ...
The quick answer is that they can't come after your Colorado property. Worst case scenario, the bank will 1099 you for the difference on the sale, which i'm guessing is at least that 60K you mentioned if not upwards of 100-200K. However, the Mortgage Forgiveness Debt Relief Act of 2007 may apply to your situation since the rate did adjust on you. The only problem is, the subject property is not owner occupied. Most government support is directed towards the home you're actually living in. To renegotiate your rate on that property, you will need to show them that you are getting close to defaluting on the loan. Prepare to fax your lender a monthly debt ledger that shows your outgoing payments to all your credit cards, auto loans, medical bills, etc and what's actually coming in as income. When you have more debt than money coming in, the lender will usually start to break down a bit. Good luckAnswer: ARM's are choices.
The problem is, the bank isn't ...
ARM's are choices.
The problem is, the bank isn't going to agree to the short-sale.
Banks investigate your financial situation thoroughly before agreeing to a short-sale. One of the first things that they check is your credit and/or an asset search and that is where the mortgage for the other home is discovered.
If they find out you own another home with equity, they will deny your shortsale.
Reason: The other bank isn't taking a loss so why should they?
If the other forecloses, they CAN come after your home in Colorado. People are crazy if they think they can't.
That is why people should never rent a home if they cannot afford to do without the rental payment.Question: If you bid on a short-sale property and then the listing goes inactive, WHAT DOES THAT MEAN?!?
Sorry for the caps, but I am so frustrated. A bid was placed on a property in short-sale, and the offer was about 15k higher than what being asked for. The agent said there were a couple of offers on the table. Then the listing went inactive the day after my bid was placed! What could this mean? Is it possible that the bank has a enough bids and considering them?Answer: Probably means that the listing expired and was not renewed. ...
Probably means that the listing expired and was not renewed. 99% of the time even if an offer is accepted the listing is still considered active until closing. I recently attempted to sellhome in a short sale and I can speak from personal experience, it takes a minimum of 30 days for the bank to get back to you on your offer, and incase it took 60 days. I wouldn't worry about the listing being inactive as much as I would talk to the realtor about the status of your bid. If you are truly frustrated, recind your bid and look elsewhere.
An inactive listing does not necessarily mean the property is off the market, it has simply been removed from MLS or the listing service which is like an ad expiring from a newspaper, just because its not being actively marketed doesn't mean its not for sale.Answer: It may mean that the seller is working it out with the bank ...
It may mean that the seller is working it out with the bank instead of going with a short-sale.Answer: Where are you seeing the inactive? That is in the MLS, but ...
Where are you seeing the inactive? That is in the MLS, but not for public access. If a bid was accepted the MLS (again, not for public viewing) would show Pending.
The agent can not determine when the bank has enough offers and must accept them until one is accepted.
I am going to venture to guess that the house went pending (sold) and you are looking at some resource that calls anything you can no longer view "inactive".
Ask your agent though, they will know if you were refused.Question: can agents make money on a short sale?
My real estate agent is never interested in good homes on a short sale or bank-owned properties. Is it because agents don't make any money on them or is there any genuine concern on his part (didn't want to sound too naive)Answer: Yes they can. The only problem is the lender has to approve ...
Yes they can. The only problem is the lender has to approve the sale, which includes the commission. It sounds like your agent has not dealt with very many short sales and therefore is weary about the process. Short sales, like foreclosures, must be looked at with caution as you never know the actual condition of the property.Answer: I agree with Vegas - short sales are very time consuming, ...
I agree with Vegas - short sales are very time consuming, and the lender has to approve the commission - if they are taking less, most often they expect you to as well - yes, an agent absolutely can make money and can save the homeowner a lot of grief! Add to that that most real estate agents are not educated as to how they actually work since they just started to be a major part of the market. Some don't know how to get that information and he may be trying to save face or just doesn't want to deal with the long drawn out process. The fact that some of them are distressed and not pretty sometimes turns some agents off as well - I have had a couple, and I love doing them!!!Answer: Typically on a short sale the Realtors involved in the ...
Typically on a short sale the Realtors involved in the transaction will be asked by the seller's lender to reduce their commissions. Most agents don't want to be involved in a short sale because of this and secondly they are not a guaranteed sale.
Also, in some cases, short sales could take as long as 3 months to get approved and may never get approved. Many buyers don't want to hang in their that long and wait for the approval.
REO/ bank owned properties are much better to go after. Be careful though, just because a home is a REO, doesn't mean it's priced right and a good deal.
I'm not sure why your Realtor would not want to show you either short sale or REO properties. One reason may be that he/she isn't familiar with them, I don't know.
Your Realtor either way will get paid on a short sale or a bank owned property.
Good luck,
-JamesAnswer: This free E-book will help you get started with making money ...
This free E-book will help you get started with making money online. It's a free & easy download so you might as well check it out - I thought it was really good! |
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