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Real Estate Short Sale Questions and Answers |
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Question: If I do a short sale on a 2nd property besides my credit going bad, can the bank go after my 1st home.?
My 1st home is almost paid off it is worth about 450,000 and I only owe 90,000. 2nd home I bought at 310,000 and it is only worth 260,000 now, and I still owe 308,000. Will the bank come after the difference on my 1st home.Answer: Not if they allow a short sale. When they agree to accept a ...
Not if they allow a short sale. When they agree to accept a short sale they agree to let you off the hook. I would be surprised if they allow a short sale if you have other assets.Answer: Going after the difference in what you can sell it for and ...
Going after the difference in what you can sell it for and what is owed. Yes the bank can sue you for that difference. Best of luckAnswer: You want to consult an Attorney. You will be 1099 from that ...
You want to consult an Attorney. You will be 1099 from that mortgage company on the difference of FMV( Fair Market Value ), and you'll be responsible for the difference between what was owned and it's purchase price. The IRS will tax you on that amount as if it's income. If you declared bankruptcy and put the homes under it, you will have protection under the bankruptcy, but you need to speak with a real estate lawyer to know you are making good decisions, in the way of protecting the other asset.Answer: no. unless the mortgage on the 2nd home is secured by the ...
no. unless the mortgage on the 2nd home is secured by the 1st then they are completely separate. However, instead of short selling there are a couple of options ur realtor won't tell u cuz they either dont get paid or get paid as much.
1. See if the bank is willing to have the loan assumed provided the prospective buyer is credit worthy and willing to pay the amount.
2. Sell the home as a lease option. meaning the rent they pay goes to the mortgage and after a certain time, noted in writing in advance, they pay a minimal down payment 2 to 5% of the agreed on sales price and then purchase the property out right.
either of these ways your credit takes a minimal hit but more importantly your mortgae rating stays in tact.
Where are you located?
I am a realtor. if you have any other questions, please feel free to call me any time 7 am to 10 pm PST 7 days a week. there are NO STRINGS ATTACHED just want to make sure you get proper advice with no ulterior motive guiding same.
My email address is barbsabodes@yahoo.com or call 818 550-1630
Take care and god bless and good luckQuestion: What's a short sale?
and what can happen if you do not sale the property after the six month?Answer: I am not sure what 6 months you are referring to but a short ...
I am not sure what 6 months you are referring to but a short sale is when the owner is behind in payments and facing foreclosure; the bank/lender might agree to a short-sale, whereby they will accept an offer amount from a buyer that is less than what is owed by the owner. Short sales are a little complicate and need the cooperation and agreement from the bank/lender but they would much rather take a small loss than go into foreclosure and be in the real estate business. The lender may also reserve the right to charge you (as a loan) the difference between what you owe and what they accepted.
Typically, you would have to prove hardship to your lender when you apply for a short sale agreement and if you receive offers on a property, the bank must approve them before acceptance to buyer. Make sure you have a competent knowledgeable Realtor involved who understands or has had experience in short sales. The 6 month period you may be referring to is the amount of time that a bank will go without payemtns for the owner before they "pull the plug" and foreclose. Good luckQuestion: Has anyone successfully bought a house that was a short sale? What was your experience?
I am considering buying a house that is listed as a short sale. In other words the owner of the house owes the bank more money than I am willing ot offer for the house.
The seller is willing to accept my offer, but the bank has to approve it because the bank will be paid less than is currently owed on the house.
Is there anyone who has successfully completed a short sale who is interested in telling me what your experience was, in particular in dealing with the bank that had the mortgage on the house and had to accept less than what they were owed?
The house that I am considering for purchase is located in San Jose, California.Answer: Be prepared for a long frustrating experience. It takes a ...
Be prepared for a long frustrating experience. It takes a LONG time to get a short sale approved.Answer: I agree with the previous answer. It can take a long time. ...
I agree with the previous answer. It can take a long time. Hopefully the owner has already talked to his lender about it and gotten some positive answers. Other than time, it's not too bad. I have purchased 2 short sale houses and they were real short due to the condition. Well below 50% of the full mortgage amount. Both deals took some time, but were worth the wait.Answer: I agree with #1 and #2.
Lenders operate on their own ...
I agree with #1 and #2.
Lenders operate on their own schedule, and it doesn't seem that the goal is to expedite properties out of REO. Lenders routinely ignore deadlines written into the offer to purchase, even if they are generous deadlines. They don't return calls, and if they do, they often don't have any answers.
REO's are great for investors, they have time, don't have a rental to give notice on and such. First time home buyers often become frustrated with the process in dealing with REO's, it certainly can be trying to even the highest levels of patience.
Lenders hire brokers and appraisers to give them a range for fair market value, taking condition into account. Don't expect to pay a small fraction of fair market value.Question: Buy a new cheaper house, Forclose or Short sale the old house....?
I know a lot of people who does this... I want to know what will be the consequences aside from the 1099C at the end of the year and a bad credit for 7 years.
1. They choose a new cheaper house. They get approved for 30 years fixed.
2. On the same month, they will get the car that they really like so they won't need their credit for the next 7 years.
3. They will let go (forclose or short sale) of their existing old expensive house.
4. Given: They have enough income to pay the old expensive house but choose to stay in a cheaper house. But it would be more convenient for them if they pay cheaper mortgage.
What will happen?
They won't be able to afford paying for both houses. They are getting the new house so that they won't have to pay for the old expensive one. If they do a short sale after purchasing the new house, life would still be good, right?
Would it be easy for them to ask the lender to agree for a short sale after they bought a new cheaper house?
FYI, They can't sell the current home at the same price they bought it due to the market condition. The house value is low right now.Answer: Not good. It is as much a scam as any other way to try to ...
Not good. It is as much a scam as any other way to try to get more for less and be irresponsible. 7 years of not needing credit is the clue here. . . that means your credit is damaged. It doesn't reset to to "excellent" at the end of the 7 years. . ..it takes you proving you are responsible to show slow and gradual increase in score. Excellent is what you are shooting for, and you don't get that with scams, but with responsible diligent deals.Answer: yes I have seen this done, but remember its a long 7 years ...
yes I have seen this done, but remember its a long 7 years and lives do change, jobs change, auto are in accidents and break down. so why would someone do this to themselves. nothing will happen other than it will show for a long time on your credit report if you dont do bankruptcy, and lenders even after 7 years will still think twice about offering you the best rates be it for a mortgage or a new car. insurance on homes and cars will be at a premium because the insurance companies have access to this information and will classify u as a high risk, think twice before taking this course of action especially if you can afford to make the payments on the first house. If I were u I would sell it if at all possible, lease purchase it or some other scenario before letting the bank take it in foreclosureAnswer: The problem lies here. You must have sufficient income and ...
The problem lies here. You must have sufficient income and credit to qualify for a NEW mortgage while still holding the existing one. Do remember that any lender expects that you will keep BOTH properties, so they want you to be able to pay for both. And, of course, when they get that new car or cars, the lenders will look at them holding TWO mortgages and wonder if they can afford ANY car at all.
Now, if they have passed THOSE hurdles, they can allow the foreclosure and expect the lender to take a look at their financial situation. If they have sufficient income and assets to handle all of the above, the lender will probably sue for the deficiency amount, since they stand a good chance of getting it.
After ALL that, their credit is still ruined for seven or more years.Answer: No, no no no no no! If they have enough income to pay the ...
No, no no no no no! If they have enough income to pay the mortgage on the more expensive home they should SELL the more expensive home and THEN buy the cheaper home. There's no good reason to allow your home to go into foreclosure if you are able to make the payments, that will just destroy your credit for no reason. First put the current home on the market and then buy a cheaper one once the first one goes into escrow, and coordinate the closing dates so you don't have to find somewhere else to live inbetween.Question: what is the process to buy short sale houses?
Short sale houses are a little bit cheaper
what are advantages and disadvatages?Answer: You must first ralize that the "short" in short ...
You must first ralize that the "short" in short sale has nothing to do with how long it will take to close.Answer: The biggest disadvantage is the lender has to approve the ...
The biggest disadvantage is the lender has to approve the sale. Inarea, they aren't any cheaper. The term "short sale" means the lender takes less to satisfy the loan than the lendee owes, not that the property is cheaper.Answer: It?sunderstanding that short sales can among the most ...
It?sunderstanding that short sales can among the most frustrating real estate transactions. The bank involved knows they aren?t going to get the full amount they?re owed, but they are going to try and get as much as possible. For that reason, the bank may be very inflexible on price.Answer: Godged is quite correct. A short sale is much the same as ...
Godged is quite correct. A short sale is much the same as any other, save for the fact that the lender must approve the sale as well as the buyer, because the lender will end up being paid less than is owed on the property. The process is a bit slower because of this needed approval (which is not always granted)
You can inquire around, butexperience, as well as godged's, is that these properties go for market price or very close to same.Answer: Short sales are a benefit to the seller, not the buyer. The ...
Short sales are a benefit to the seller, not the buyer. The only difference to the buyer is that someone must get the mortgage holder to agree to a lower payoff than the mortgage balance.Answer: the lender has to approve the sale.I found a VERY (V_E_R_Y) ...
the lender has to approve the sale.I found a VERY (V_E_R_Y) good article about HOW to buy a foreclosed property AND short sale videos here:http://all-foreclosure-listings.blogspot.com/2007/09/best-way-to-buy-foreclosure-home.html |
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