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Real Estate Short Sale Questions and Answers |
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Question: What should I offer on a short sale home in Lawrenceville, Georgia?
I am presently in the market for a home. My realtor is pushing short sales on me and I like the fact that they are below market value. There are a couple of homes I am looking at and they are $199,900 which is a 3 bed 2 bath and $195,000 which is a 4 bed 2.5 bath. Both of these houses are in the same general area in great neighborhoods and both are in the same school district. I know that there have been no offers on these houses so far. One has been on the market for over 30 days and one has been on the market for about 3 weeks. What do you think is the lowest I could offer on these 2 houses and try to get the bank to pay my closing cost? I am trying to go in very low and see what happens and was just wondering if anyone had any suggestions. Thanks in advanceAnswer: offer 35% below the asking price.
offer 35% below the asking price.Answer: Short sales aren't generally any better a deal than are ...
Short sales aren't generally any better a deal than are conventional purchases. The market is what it is. If your 'short sale' home has a market value of $195,000, you won't find the lender approving a short sale for any much less than that figure.
Being on the market for that short a time period is also not a good indicator that the lender is going to take any sort of lowball offer. They want to help rid themselves of a losing situation, but they're not going to sacrifice tens of thousands of dollars if they think they might not have to do so.
Find out from a buyer's agent what comparable properties are being sold for. Once you have that information, don't count on getting these properties for much less than the prices you discover.Answer: Short sales are not necessarily good deals-All that means is ...
Short sales are not necessarily good deals-All that means is that the lender who holds the mortgage for the current owner is willing to take an amount smaller than the amount owed to settle the debt, and that the seller will retain no equity. If they bought the house overpriced at 100% financing, chances are the short sale amount is still too high.
I would ask your Realtor to start searching out foreclosures. It's fairly easy to do in the FMLS used in Lawrenceville, and you are often able to get substantial reductions, as banks are usually willing to take a much greater loss to get the properties off of their tax roll and free up the equity. I have had luck findingbuyers properties up to 50% below market value in the Atlanta area. Sometimes, they need some repair or updating, but you can easily get a 2nd mortgage to cover repairs if you get that much equity off the bat. Good luck, and let me know if I can help.Question: If my house will be on short-sale, can I still stay at my house or do I have to move out?
I purchased our house last 2006, 100 % financing. Due to financial difficulty we cant keep up with the mortgage payments for almost 2 months. We are planning to put our house on short sale and I was just wandering if we can still stay at the house during the short-sale process or do we have to move out? Please advise.Answer: Stay as long as you please until the marshals physically ...
Stay as long as you please until the marshals physically remove you from the premises. Good luck with that.
I am truly curious how someone such as yourself buys a home and then less than two years later is unable to afford the payments. Did you lose your job or some other unexpected catastrophe?Answer: A short sale is the same as any other sale, except you have ...
A short sale is the same as any other sale, except you have negotiated with the lender for a smaller pay-off. The lender will have to okay the sale and the sales price. Other then that, the sale is like any other real estate sale, so you can live there. However, this is not a good way to stay in your house for a long time. You should be serious about selling. The lender will foreclose at some point.
But you may also want to speak with your lender, who may allow you to refinance into a better loan, so you can keep your homeAnswer: If I were in this situation I would:
Contactmortgage ...
If I were in this situation I would:
Contactmortgage company and find out if I can work out a temporary hardship payment plan.
I would either rent out the basement for extra cash or
rent out every room in the house while I lived in the basement
until I got back on track.
A short sale will do two things for you:
a) give you a voluntary mortgage repo on your credit report
b) give a deficiency judgment for the balance owed on your mortgage (the difference between what the lender gets for it and what you owe right now) which they will bug you to death to collect.
Neither of these is desirable and can be avoided with a little creativity on your part now before it's too late.
Start now.
Get that ad in the paper and call the lender tomorrow.
Don't lose your most valuable asset to a temporary setback.
Make it work for you as an asset should and help you back on your feet in the process.Answer: Bummer. Sorry to hear about your situation.
First, ...
Bummer. Sorry to hear about your situation.
First, I'll say it would be wise to speak to an attorney licensed to practice in your jurisdiction. I am not an attorney.
When you fall behind on your mortgage payments, the very FIRST thing to do is speak to the bank. You must keep the lines of communication open. You can try to arrange terms with the bank; depending on the bank and their current policies, you may be able to reach some kind of forbearance deal to keep the house.
Secondly, you should get your property marketed by an EXPERIENCED professional Realtor. They should have handled at least 2-3 short sales already -- if your Realtor has not handled any short sales, find a different Realtor. Yes, I know they cost money, but it's worth it. Without a Realtor, at best you won't get the best price and at worst, you'll be targeted by a scam artist. (Disclosure: I became a Realtor myself a few years back to save on commissions. I only work for myself).
Thirdly, you should understand, to the best of your ability what is going to happen during the process, so you know your rights and what to expect (this is also where an experienced Realtor will come in handy). As part of this process, you should understand how the bank looks at this kind of thing. The exact nature of the bank's perspective highly depends on your specific situation, but I can speak generally here. The most important thing to know is, *the bank does NOT want your house back*. Banks make their money through making loans, the amount of loans they can make is dictated by their ratio of assets to liabilities. Taking back your house gives them a liability on their books, so not only do they have to worry about maintaining the house, they've also reduced the amount they can loan out too. Banks hate owning real estate.
Now, all of these things do not mean the bank won't foreclose. They can, and will, if they have to. Also, some banks are much more likely to not even attempt to communicate with you, depending on how your loan was structured. However, you should TRY to work with your bank. And if not, a qualified Realtor will help make the process as painless as possible.
One last, very important (and very crappy), note many people are not aware of: if/when you short sell your house, you will receive a 1099 the following year. The amount of debt relief you receive will be taxable to you. Yes, that's right, you will have to PAY the government for the relief you received. It's a real kick in the teeth... last I heard congress was debating whether to repeal this part of the tax code. This would be something additional to consider, and certainly something to watch in congress while you're in the process of dealing with selling your house.
I wish you the best of luck.Question: Release from Short Sale Contract when seller's lender still did not accept the offer?
We signed a contract on a property that is in preforeclosure, It's basically a short sale. The seller agreed, but the seller's bank is taking their time to see if they are going to get better offers and even raised the price after we signed the contract to see who is willing to pay more. It's been 2 weeks after we signed the contract and the seller's bank still did not approve the contract and it's unknown how long they can take. Can we get released from the contract and what do we need to do for that?
Thanks.
Just to clarify: we are the buyers. Property located in Broward County, Florida. Seller's bank nor accepted or rejected our offer.
Our realtor never explained to us that short sale could take up to 2-3 month. Our offer was exactly what the sale's price was and the realtor explained that the bank just needs to sign off on it and we are good to go. The contract said that there 3 days to accept the offer, we thought it would be the seller's bank, turned out it's the owner only. The contract does not specifically discuss how long does the sell's bank has to accept our offer. What forms do we need to have both the seller and the buyer to sign off on release of contract?
By the way, when we gave an offer below the sale's price it was rejected. We were told that sales price is the min they will accept, it was still a good deal at that time, but now we do not want to wait.Answer: not knowing the details of the contract -- Id assume the ...
not knowing the details of the contract -- Id assume the worst -- go see a property lawerAnswer: I would hope that your contract (offer to purchase) included ...
I would hope that your contract (offer to purchase) included a contingency of acceptance of your offer by the lender involved. If such was properly written into the contract, you need to read any such language to see if and when you can rescind your offer or contract.
If there is no such language contained in the offer, you have a mess on your hands. You cannot rescind the offer unless the seller of the property is in agreement and will sign off accordingly. A proper contingency allows you to rescind unilaterally. Without that, both parties to the contract must agree and sign off.
Good luck.Answer: Well, I'm not an attorney so I'm not giving legal ...
Well, I'm not an attorney so I'm not giving legal advice here. As I understand it, your offer is not a binding contract until the other party communicates their acceptance of the offer to you. Obviously your agent should have specified a time period for acceptance in the offer form. Most forms have this printed in boiler plate and the agent merely needs to write in the number of days given for acceptance in a box on the form.
If no time frame has been specified for acceptance and no communication of your offer has been made to you by the bank then I don't see how you have a binding contract and you should just be able to rescind your offer in writing to the bank and be on your way. Even if you did specify a time frame for acceptance in your offer, as long as you rescind your offer BEFORE the bank or seller communicates their acceptance of your offer to you (possibly through your agent) then you can rescind. I am not in Florida so the law there may be different. Personally, I would rescind the offer in writing immediately and move on.
It's easiest to wait for a property to become a full fledged foreclosure before buying. That way you are dealing with the bank directly and not through the owner. Also, it seems the market may still have a way to go on the downside so perhaps you should wait a while longer before buying?Question: I'm looking into purchasing a Condo thru Short Sale, the Realtor told me i'd basiclly need the money upfront.?
either in cash or a mortgage. But What if the bank doesn't approve the shortsale... What happeneds to my loan? Also... is there a difference between a short sale purchase and a regular purchase. What are the differences when it comes to the buyer?Answer: If you put in an offer of say $200K on a house with a $220K ...
If you put in an offer of say $200K on a house with a $220K mortgage, the bank has to green light your offer, or you have no contract and will not receive a mortgage (you?re still approved for one; you?re just not going to have one until you close on a sale). It?s not as though you?re going to get all the way to the closing table before finding this out.
The $20K difference is the bank & seller?s problem, not yours.Answer: if the deal doesn't go throw - you don't lose ...
if the deal doesn't go throw - you don't lose anythingAnswer: on a short sale some companies can require a 10% earnest ...
on a short sale some companies can require a 10% earnest money or promisary or in the form of downpayment. If the bank does not approve the short sale you do not get the house. A short sales usually means that the seller is in forclosure and going into forclosure and is trying to refinance to avoid forclosure. The seller will make no profit, they will make enough to payoff the mortgage settlement and realtor, and any title fees/closing costs...
If you get a house like this you can get a great sales price on it in this market, but make sure before you invest ANY MONEY that you see the approval in writing from the bank....
Send me a message with further questions, I do a few a month.Answer: the short sale simply means that the previous buyer has ...
the short sale simply means that the previous buyer has defaulted or is about to . either way you get the property at a bargain price ( less than what is owed any way)
The downside is you need to accept the property as is.
There will be no improvements, and possbly no cleanng or painting of the property before you take ownership.
Most likly the bank will not be willing to pay for a home inspection so you take your chances on the quality.Answer: it extremely selfish of you to be asking all these ...
it extremely selfish of you to be asking all these "real" questions
"real" answer. You get approved for the loan, deal falls through, you're still approved, but nothing happens...you're still approved and you find another home to blow your wads onAnswer: To you, it doesn't matter if it's a short-sale ...
To you, it doesn't matter if it's a short-sale purchase or a regular purchase, it's a purchase to you and the bank you would go through.
What your Realtor is trying to tell you is that you need to be fully pre-approved for the loan before you make an offer on a short-sale (not cash).
If the seller's bank doesn't approve the short-sale, you simply keep looking and can use that same loan to buy something else.
You haven't bought anything until you close.Question: Is a short sale really a better option?
than forclosure? I mean if I am not concerned with my credit score. Is it better for me financially to sell as a short sale or forclose?Answer: YES!!! It will keep a foreclosure off of your record... if ...
YES!!! It will keep a foreclosure off of your record... if you're facing foreclosure, a short sale is a MUCH better idea!
Edit: What do you have to lose? Sure, short sales take a while... and the bank may not approve the sale... but then you'll be in the SAME situation you were in before... facing foreclosure. I don't understand anyone who wouldn't at least try it!Answer: Why would you NOT be worried about your credit score? Of ...
Why would you NOT be worried about your credit score? Of course it is a better option but the chances of getting your property sold in a timely manner are a different story. Plus the banks don't always cooperate and therefore you will find alot of buyers staying away from them. I would atleast try it tho. It's ALOT better in the long run if you can sell. Good luck.Answer: YES IT WOULD BECAUSE U MAY NOT BE WORRIED ABOUT IT NOW, but ...
YES IT WOULD BECAUSE U MAY NOT BE WORRIED ABOUT IT NOW, but trust me later down in life A FORECLOSURE WILL BITE YOU IN THE BUNS!!!!Answer: You may also want to check into or find a "Loss ...
You may also want to check into or find a "Loss Mitigation" agent, they can negotiate your current contract with the lender to see if there is a remedy outside of foreclosure or short sale.
You would keep your home, and work out a better arrangement with your mortgage company. This option is based on your income, and is not effected by equity.Answer: Not only does it keep a foreclosure off your credit report ...
Not only does it keep a foreclosure off your credit report it also resolves the whole debt. If the lender is unable to liquidate the house to at least break even they can come after you for the balance. And when the lender forecloses they incur a lot more fees which they will want to be paid back!Answer: A short sale is better than foreclosure. It is still going ...
A short sale is better than foreclosure. It is still going to hurt your credit considerably, but not as much as foreclosure. In order to go this route, you should get an agent that is experienced with short sale negotiations.
Call around and ask agents how many they have dealt with and what their experiences have been. If you hate calling, then email. The interested and knowledgeable agents are the ones who call back.
https://www.exploreutahrealestate.comAnswer: Inopinion it is better to short sale. If your house ...
Inopinion it is better to short sale. If your house forecloses the bank can still come back for the balance. They can pursue you until you pay it. With a short sale, the bank will usually give you a waiver of deficiency. Even though you are not worried about your credit now a foreclosure will stay on your record and affect you for years to come. A short sale will have a very minor affect on your credit and it can be removed down the road. |
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