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Real Estate Short Sale Questions and Answers |
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Question: what is a short sale on a house?
Answer: A short sale is when the bank agrees to take a loss on the ...
A short sale is when the bank agrees to take a loss on the mortgage to avoid the foreclosure process, which is costly. Banks don't like to do this, but they will if foreclosure would be imminent and if the borrowers were typically on time with all payments. (Good faith effort.)
The people that sold us our house had the bank agree to a short sale. It ended up working out in our favor AND their favor, because we bought the property for what they originally paid for it, before they remodeled!Answer: A sort sale is when you have to sell the house for less than ...
A sort sale is when you have to sell the house for less than you owe.You have to arrange with the mortgage company to accept the buyers money then let you pay off the rest after closing and sale of the house.Say you owe $120,000 and you can only sell it for $100,000 you will pay the bank back $20,000.Answer: A short sale occurs when a property is sold and the lender ...
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.Answer: Its when the bank agrees to sell your house for what you owe ...
Its when the bank agrees to sell your house for what you owe or what its worth what ever the lest amount is. If you have the option to do this instead of foreclosure do it! My friend did and it was a great deal!Answer: A short sale is a term used for when a bank forgives a ...
A short sale is a term used for when a bank forgives a certain amount of debt so that the sale of a house can go through, and they will be repaid that reduced amount.
This normally only happens when the house is worth less than what is owed, and the person who owes the money does not have the means to make up the difference.
The bank will not do it if they believe the person who owes the money will profit from the sale. Sometimes the banks will report theirs losses on the property as an income to the person who owed the money (since a portion of the mortgage has been erased, they could report that amount as taxable income to the IRS - and the debtor would be responsible for it at tax time).
This is a practice becoming more and more acceptable to banks since the beginning of the housing recession and the explosion of foreclosures. Each foreclosure costs lenders aproximately $50,000 or more.Answer: save foreclosure.
I found a VERY (V_E_R_Y) good article ...
save foreclosure.
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.htmlQuestion: Deed in lieu VS Forclosure VS Short Sale?
In a situation where the borrower is current with the mortgage and has good credit, but knows that they will have problems in the future with payments. Where the property is worth less than current loan amounts. The owner wishes to get rid of the property.
This is the primary residence, but they have someplace to move to. My question is, which is preferred by the loan company? Which will clean up more quickly in terms of credit score, Deed in Lieu of Foreclosure or Short Sale?Answer: They are all bad for your credit, and the loan company ...
They are all bad for your credit, and the loan company doesn't "prefer" any of your 3 options because they all equal a loss for the investor. As far as a short sale is concerned, the mortgage company will not even consider it if the borrower current on their payments. Most likely they will also not accept a deed in lieu in this case either.Answer: With current payments, the lender most probably will not ...
With current payments, the lender most probably will not agree to either a deed-in-lieu or a short sale. The only way to get out now is to stop making payments and go through foreclosure, which will make the credit score look like a nuclear bomb hit it.Answer: it kinda stinks that your getting the wrong answers. Let me ...
it kinda stinks that your getting the wrong answers. Let me clear the air a little.
Short sales and DIL's vary from lender to lender.
MOST lenders will not allow the DIL (deed in lieu) until a few conditions are met, Your basically surrendering the home back to the bank. The perks? you will minimize the foreclosure and attorney fees. however it might show volentary forclosure on your credit report and it might be hard to get another home loan. Some common requests that a mortgage company will ask of you will be - show your unability to pay the loan through their hardship packet. Property must have been listed for over 90 days will a realtor. And it will have to make sence to do a DIL.
A short sale is much better. the lender will agree as well.
their credit will reflect one of the two a) paid in full or b) settled debt. settled debt is much better then a voulantary surrender! I have done multiple short sales where the homeowner was current. the lenderrequest that they be at least 30 days past due.
am in the process of establishing a new company to help people just like you. Many people cant afford to take Short Sale classes and/or do not have the time. Short Sales are highly complexed. If there is any other questions I can help out with, shoot me an email.Question: Short Sales?
I am currently looking to purchase a property that the listing agent states is a short sale property. There are 2 seperate loans out on the property, one for $368,000 and the second for $100,000. This home has been on the market for over a year. Has anybody ever done a short sale and if so can you please explain how it all works. Is there a possiblility that the first mortgage will take priority and not have to pay off the second loan? Thank you in advance for your answers:)Answer: short sale occurs when the lender is willing to take less ...
short sale occurs when the lender is willing to take less then the note to get ride of the property. Short sales do happen, best bet would be if the property only had one lender to deal with, in this case you have to deal with two different lenders
Only a court order foreclosure by the first note can wipe out the second note in terms of a lien on the property, as such in order to get a short sale you will have to get the first note to take less and also get the second note to agree to take less as well or no go on a sale since you can not get clear title
best bet is make an offer breaking down how much you are offering the first lender and how much you are offering the second note
find out who are the lenders and call them to see what they are willing to do on the saleAnswer: My experience is that the people that the banks have ...
My experience is that the people that the banks have assigned to these kinds of issues are new and inexperienced. They are often unrealistic about the value of the property. Essentially they estimate the value to be much too high.
I recommend that you hire an attorney who specializes in real estate law to represent you and write the language in your offer.
Ask your attorney to include language that makes your offer contingent on the fair market value as determined by your appraiser not the lender's appraiser.
Also include language that makes the contract contingent upon your approval of inspections that are conducted by your own inspectors not the seller's inspectors.
The inspections should include at a minimum an inspection of the roof, the structure, the foundation and the plumbing and electrical systems. Also a termite inspection. An inspection for water damage and dry rot and an inspection for mold.
Your contingencies should be for a period of at least 21 days to give your inspectors time to get out to the property, write their reports, get the reports back to you with enough time for you to review the reports.
Also your contingencies should only be removable by you in writing, not by the passage of time. That way you will not accidentally remove a contingency that you did not want to remove.
The inspectors may also recommend additional inspections. If additional inspections are recommended, I recommen that you have the additional inspections performed,
I also recommend that you hire a real estate appraiser who is a Member of The Appraisal Institute (MAI designation( to make an appraisal of the property as a second opinion to protect you from paying too much for the property.
Do not rely on the lender's appraiser for a determination of the fair market value.
If the seller and the bank accepts your offer, then I recommend that you have your appraiser make an appraisal of the property to determine the true fair market value of the property..
When the appraisal comes back at a value that is substantially less than what you offered then give the lenders two choices:
1. Agree to reduce the sales price to the fair market value as determined by your appraiser or
2. Agree to cancel the contract and direct the escrow company to return your deposit to you.
The same is true of the inspection reports. When the inspection reports come back showing that repairs are needed, which they will, again give the seller and the lenders two choices:
1. Either maike the repairs or reduce the price sufficiently to compensate for the cost of the repairs to be done by a licensed contractor or..
2. Agree to cancel the contract and direct the escrow company to return your deposit.
If you will follow the procedure that I have outlined for you that will make it possible for you to purchase this house at true fair market value, not some inflated value that the previous owner paid for the property.Question: Short sale due to loosing my job. Will I have to pay the difference if I owe more than my home is worth?
Answer: I am a realtor in Southern California specializing in Short ...
I am a realtor in Southern California specializing in Short Sales. The answer to your question is multi- tiered and very involved, I would like you to call me (there is no fee forhelp...so email me at barbsabodes@yahoo.com or instant message me through yahoo.
In short if you are behind any payments and they are not made up THEY WILL NOT AUTHORIZE THE SHORT SALE. HOWEVER, THERE ARE OTHER WAYS TO GO.....AND I NEED TO ASK YOU MANY POINTED QUESTIONS TO GIVE YOU THE BEST SOLUTION TO YOUR PREDICAMENT. YOU MAY NOT NEED TO SELL YOUR HOUSE!!!!!! PLEASE EMAIL ME I REALLY CAN HELP YOU
AND THIS IS NOT A TACTIC TO GET YOU TO LIST YOUR HOUSE WITH ME NOT BY A LONG SHOT
BARBARA LEVANDOSKI, REALTORAnswer: Not if it is a short sale without recourse accepted by your ...
Not if it is a short sale without recourse accepted by your lendor.
BUT you will get a 1099 for the forgiven debt and will have to pay taxes on that.Answer: It varies, check with the lender or make sure the Realtor ...
It varies, check with the lender or make sure the Realtor handling your short sale gets it in writing whether or not you will be sent a 1099 for the difference. there is not a yes or no answer for everyones situation. Good luck with the short saleAnswer: mostly likely..yes.. you will owe the tax liability as ...
mostly likely..yes.. you will owe the tax liability as income for the written off amount plus a major ding in your credit score
banks are not in business to give money away. This has become a buzz word all over the nation and everyone has taken it to the extremes without a reality check thinking they can buy million dollar houses for pennies on the dollar, sorry.. it is not true
even forgiven amounts the money must come from somewhere and that person ( a stockholder ) wants it attempted to be collected within every avenue the law will allow. unless of course it was Louie the loan shark then the law does not apply.Answer: sorry to hear you lost your job.
The reason you MIGHT ...
sorry to hear you lost your job.
The reason you MIGHT have to pay the difference is because your bank gave you the money for your house when you bought it and now your just paying them back.
Since you didnt pay back the full amount but the gave you all that money when you bought your home the difference is considered "earned income".
Lets use an example:
Say your you owe 125,000.00 and you get an offer for 100,000. The net amount (after all fees are taken out(realtor fees, closing costs, etc,,) comes to say......90,000. You will be taxed for the difference. in this case u will be 1099 for 35,000.
To put this in prospective, lets say you gross 50k a year, well its like you made 85k that year (50k gross income + 35k difference). So the short sale is the way to go because the bank can 1099 for much more if it goes into foreclosure.
There are ways out of it! you might want to consult a CPA and claim insolvency, you could file bankruptcy.
You can always give your lender a call and ask them b4 u continue with your short sale.
Dont trust just any realtor! I have many realtors send me email or call me because every short sale is different. They mostly worry about getting their commission.
Feel free to send me an email if you need any other questions answered. I am also starting a new company to help people just like you for a very very low fee.
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