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Real Estate Short Sale Questions and Answers |
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Question: Any knowledge or background on Short sale?
If you were to put your home on short sale and the price listed to sell is way below from the amount it was last purchased, does the current borrower still have to pay the remaining balance after the home is bought by a buyer?
For example:
last purchased $315,000
listed price short sale $275,000
Do banks/lenders still send a monthly statement OR are they going to ask for it in one lump sum? What about taxes?Answer: if the bank has agreed to a short sale, they will have to ...
if the bank has agreed to a short sale, they will have to approve or decline any offers on the property. the current outstanding balance (what you owe) minus the short sale price (what they got) = the difference. (note that it does not matter what the 'last purchased' price is, only what the current outstanding loan balance is).
IF you had mortgage insurance, then the mortgage insurance company will pay the difference to the lender, and you'll owe nothing. but, if no mortgage insurance:
generally the bank will then do one of two things: 1.) file for a deficiency judgement against the borrower for the difference (which means that you'll have a debt to the bank for the difference) or 2.) write it off, and send you a 1099 for the difference (basically like saying they gave you the difference, and you'll be responsible for paying income tax on that amount).Question: How you ever done a short sale ?
Do you know what happen when you do a short sale?
Was your credit damaged?
Please tell me more about itAnswer: Your credit isn't damaged by the short sale. It is when ...
Your credit isn't damaged by the short sale. It is when the bank files for a deficiency judgment against you that it starts to impact your credit score.Question: forclosure or short sale: in illinois?
1. would there be any effect on my credit card, credit score?
2. how will I be able to save money after the forclosure/short sale? Will the bank take my money from saving's account?
3. if i'm currently financing a car, would the bank take it from me?
4. I owe two houses- will the bank be after my 1st house bec. of forclosure/short sale?
5. Will I owe any difference from doing either forclosure/short sale?
Thank you so much for your input ...Just having a hard time making my payment for the 2nd mortgage.Answer: In either a short sale or a foreclosure action, your credit ...
In either a short sale or a foreclosure action, your credit score is going to take a very serious tumble. Given that you are speaking of a second house here, the lender may NOT be willing to 'forgive' the deficiency amount on that mortgage, and is not required to do so. If your equity basis in your other property is high, they may come after you for the shortfall. Chances are low that they would go after your automobile, since you probably owe more than the auto is worth (given the regular depreciation of cars)
If you have substantial savings, that will also factor into any lender decision to obtain a judgment for your deficiency amounts.
In summary, if you have sizeable assets, the lender will discover that and may seek a judgment to recover its FULL investment.Answer: If you're having troubles paying your payments are not ...
If you're having troubles paying your payments are not yet in foreclosure, contact your loss mitigtion dept to see if they can put you on a plan. If you're already in foreclosure you can still do that. Either way a Foreclosure/short sale can stay on your credit report up to 10 years or more. They wont take your car or dip into your savings. I dont think they will get your 1st house unless that is in foreclosure also. A short sale is when you sell your house for less than what you owe. What you owe is what you owe on your payments. How your lender wants to be paid is a different story. Good LuckQuestion: I do not understand short sales of homes. I want to know what I would pay if a home is listed at 450,000?
I am trying to figure out what a 455,000 listed home would cost me on a short sale. My realtor buddy told me the banks give .70 cents on the dollar and that made no sense to me. please enlighten me on how I would pay less and how much less.Answer: 455,000 X .70 you do the math
455,000 X .70 you do the mathAnswer: If you mortgage it, your monthly payment would be roughly ...
If you mortgage it, your monthly payment would be roughly $4,550. I'm not sure if that is what you are asking. $.70 cents on a dollar for that amount would be $318,500.
Hope this helps.Answer: The home is going to sell for what other homes in the area ...
The home is going to sell for what other homes in the area are selling for, or just a little less. To figure this out, go to a realtor in your area and have them produce comps. Your friend is not correct. Why would a lender sell a home for less than they could. The only reason they will sell for slightly less is to get rid of it fast. Definately not at 70% less.
A short sale simply means that the house is selling for less than the owner owes on it. This happens If the owner borrowed a ton of money against the house and now has to sell it at a lower price, the lenders are not going to get reimbursed for thier money. When prices are dropping, this happens often. when prices are rising it does not.Answer: Short sales are when a lender and seller liquidates a ...
Short sales are when a lender and seller liquidates a property to avoid foreclosure. Your buddy's estimate is likely based upon his knowledge that 20% of the mortgage is insured by the sellers private mortgage insurance and is tacking on another 10% out of a belief the lender will over look the amount due to avoiding the many fees that come with the foreclosure process. I don't know your market, but I am willing to bet your Realtor buddy has given you a good starting place in the negotiation process if the house has not already been reduced for the sake of a short sale. Good Luck!Answer: A bank will consider a short sale only when the prospects of ...
A bank will consider a short sale only when the prospects of getting what they are owed looks grim. Believe it or not, it is a loss mitigation strategy.
A homeowner gets in over their head and can no longer afford the house. They contact the lender and tell them they are going to walk away. The lender and the homeowner (usually an agent of the homeowner, like a lawyer or a real estate agent) agree that the mortgage would be satisfied for 70% of the balance of the mortgage. Let's assume our hypothetical person owes $643,000 on a house and that houses in the neighborhood are now selling for around $450,000. The bank may say that they will forgive the difference between the $643,000 and the $450,000 just so they don't have to take ownership and auction it off, etc. The bank is taking $0.70 for every dollar owed to them. They still want the $450,000 for the home.
The seller and the bank are anxious, but there is a point the bank won't go below.
A short sale should be almost invisible to you (as the buyer).
good luck!Answer: A short sale in real estate occurs when the outstanding ...
A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. Short sales are a way for homeowners to avoid foreclosure on their homes and still be able to pay off their loan by settling with lender. In layman terms think of a short sale as the bank allowing a consumer to pay less than the amount that they actually owe on a house, inunderstanding this is done as a last resort for the bank to recoup at least the cost of the home and the homeowner to avoid foreclosure. Now I do not know how you as a buyer could do a short sale unless you own a property and you are facing a foreclosure. Unless you know of a property that is facing or in foreclosure who' s lender
offers short sales to buyers, but that would seem redundant when you could make an offer versus going through the process of a short sale if that is at all possible. I have left you a link below. Also check out Feb.'s O Suze Orman gave details about the subject.Answer: A short sale is not a given even in this market in general ...
A short sale is not a given even in this market in general many factors the lender needs to look at before even considering a short sale
first the over all market in that particular area, is there many homes listed or a few
next the lender may want to inquire into the sellers other assets, for example if the seller is sitting on 30K in savings they might not be to willing to do a short sale
what are the agents commission in relationship to short sale price
then after all that they may look to recoup 70 cents on the dollar in the value of the note, but then are their junior liens? if so a short sale will not void them so you the buyer will have to pay them in a short sale plus any taxes utilities billsQuestion: Buying a short sale home from AMC. Its listed a 200K, I offered 160K they offered 190K firm. Can I negotiate
Its listed a 200K, I offered 160K they offered 190K firm. Can I negotiate? There is also a back-up offer to mine. Do I have any room to ask for closing costs, cash back, etc.?
I was expecting a lower counter from the bank. I really thought they would accept close to my offer, so such a high amount was very unexpected.Answer: No...b/c that is what the word FIRM ...
No...b/c that is what the word FIRM means.
$190K...that's it.
You can try, but you most likely won't get it.
You can accept the contract as is, and they are bound to it, but if you counter, the contract is DEAD and they are free to look at the backup offer, and if it's better, you'll lose the deal.Answer: All of that should have been in your original offer. You ...
All of that should have been in your original offer. You can try adding it, but firm usually means this is their last time to deal with you. You might try 190 and closing costs. Forget cash back. Be prepared for them to turn it down though. There 190 offer will be invalid as soon as your counter.Answer: If there's a back up offer then you might be stuck. But ...
If there's a back up offer then you might be stuck. But what's the back up offer? Are there other properties you're interested in? What have similar properties sold for in the area? Is this price way below market value?
If you're already getting a good discount you might want to go for it, but I'd say it's always good to have other properties to turn to if you're offer is turned down. Right now the market is in your favor. Don't get too emotionally tied to a property.
Where is the property located? |
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Bank Foreclosure
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