|
Link to us |
|
|
|
||
| Email This Page to Friend | |||
Real Estate Short Sale Questions and Answers |
|
|
Question: Short Sale Question...?
My offer for a house on short sale was signed by the home owner and the owner's real estate agent and then sent to the bank. There were 9 other offers on this house and only mine went to the bank with the owner's signature and the agent's signature. My question is even though my offer is at the bank I still haven't heard from them witht he approval, and I know that there have been other offers on the house also since mine was sent to the bank, so does the real estate agent send every offer to the bank or just the ones that are the highest and that he and the home owner like? Also does the owner and the agent have to sign every offer before they send it to the bank or being that they signed mine does that look better for me?Answer: The firs step is to get approved by the bank, then buy the ...
The firs step is to get approved by the bank, then buy the house. The next step is to go to scrow which means that the house is basically yours. Talk to your agent as soon as possible to get straight answers.Answer: The Seller/Realtor must present all offers to the bank since ...
The Seller/Realtor must present all offers to the bank since they have an interest in the transaction.
You need to be patient, the banks have many more than this one house to deal with.Answer: All offers go to the bank, the seller does not have to sign ...
All offers go to the bank, the seller does not have to sign them or like them. The bank decides, the owner has nothing to say in this matter.
Unless you made a great offer expect this to take a very long time.Answer: We just purchased our first home, and it's a short sale. ...
We just purchased our first home, and it's a short sale. No other offers were on the table, so I can't relate with you there.
But I can tell you it did take a very long time. It took well over a month almost 2 months for the bank to get back with the realtor, and then we had to close in 2 weeks. Very chaotic time.
I wish you the best of luck!Question: Do I still have to keep home insurance on a vacant home if I'm negotiating a short sale or can I cancel it?
I'm negotiating a short sale with the bank. Do I still have to keep home insurance on my house (payment included in the mortgage) or can I cancel my insurance and get reimbursed for the remaining premium. Won't the bank have to carry the insurance if the short sale is accepted? Also the realtor I am working with is asking me to hire a pool service and lawn care service company to up keep the house since we are leaving it vacant and for curb appeal for the house to get sold. I can't afford to pay this extra money. Do I have to hire these services or simply tell the realtor I can't afford it. Also, I can't afford to carry utility bills on two houses right now can I just cancel the utilites on the house being short saled and have the potential buyers have the utilities turned on for inspection or am I required to keep the utilities on? Is the debt forgiveness forgiven completely or do I still have to request a satisfaction and wil a VA loan also fall under the new forgiveness act?
My realtor is stating that if the bank assumes a short sale then I don't necessaily have to keep the insurance they have to automatically insure it themselves, is this correct? Also we care moving out of state and won't be having any jobs it will be hard for us to hire a lawn & pool service to care for the vacant property like our realtor wants us to hire. We are also temporarily shutting off the water and power so we won't have a bill while searching for jobs in the new state. Our realtor already has the short sale price set at $98,000 more than what we owe the bank and is being listed as is. So people lookin at the property will know it's vacant and short sale will they still expect the house to be ut grass and sparkling pool. They will be getting a below market value home already and that is minor stuff the house is imaculate structure wise and needs nothing done to it just freshly painted in and out and kitchen remodeled so will it not sell if grass and pool are not up kept.
I will be keeping the insurance on the house just wanted to see if the realtor was telling me the correct information. Also, we are moving out of state because of personal and medical reasons it is forcing us to move in with family and we can no longer afford the house, I am unemployed and my husbands full time job got reduced from 40 hours a week to 30 hours a week so it has become inpossible for us to keep the house. I'm not completely shutting off the utilities just temporarily until we can establish jobs to be able to pay the utility bills again.Answer: The bank will only forgive your debt on the Short Sale if it ...
The bank will only forgive your debt on the Short Sale if it actually sells. So, not keeping the house up will turn off prospective buyers. Then, the house doesn't sell, the bank forecloses and your credit is tanked. So many people believe that if the bank is willing to Short Sale, you can just wipe your hands clean and walk away. You are incorrect. A Short Sale is a cooperative undertaking between you and your bank to make the best of a bad situation. If you don't hold up your share of the bargain, why should they hold up theirs?
I am shopping short sales right now and I refuse to even look at a place that is neglected. It tells me the leach of a seller is taking advantage of the bank and will probably take advantage of me by raping the place before I move in. That is the kind of message your are conveying to potential buyers. Bear in mind there are Short Sales every where and only so many buyers. So, if you don't want to lure in a real buyer prospect, you're going to go down the tubes with that mortgage.
It's your call. Oh, and regarding the insurance, the bank will not allow you to cancel the policy and leave it uninsured. That would be a default and result in forclosure too.Answer: The first guy is exactly right.
The first guy is exactly right.Answer: When you cut corners you end up paying more. Your Realtor ...
When you cut corners you end up paying more. Your Realtor is correct, if you expect to get enough to pay off that mortgage, it better look it's best, empty or not. This is a not a game, this is real life. If you need to work a second job for awhile to keep up these payments, then I strongly suggest you do. Look, if you set the thermostat to 62, the house should be fine. Have it winterized so the water can't be used. It should be minimal payments for these items. As for the lawn care, maybe you could find a teenager in the neighborhood who would do this for you and pay him/her $100 a month to keep it up. That isn't much.
Also, if you default, or the short sale doesn't provide enough funds to clear your debt, it impacts your credit history and score or years. Don't go down this route. You'll want to buy something else again and this could impede your ability to do so. My best advise is to do the very best you can to get this place sold quickly and for enough to pay off the mortgage and expenses of selling. But do not cut corners or do things on the cheap, it will come back to bite you in the ass later.Answer: Few things:
The fact that the bank is willing to do a ...
Few things:
The fact that the bank is willing to do a short sale, does not mean they take responsibility for the home, you are still on the hook until you find a buyer and close on the property, so you must keep the insurance, since you are still liable until the closing
Next: short sale only means you have a agreed upon price the bank is willing to take, you still must find a buyer, if you think your place is going to show well in this down market, with a green pool, bad lawn care and no electricity to see around, you are fooling yourself
do the things you are thinking about and you will go from a short sale to a foreclosureAnswer: You'd better keep it insured. If it burns down, its ...
You'd better keep it insured. If it burns down, its your loss.Answer: You have several problems:
1. Insurance companies ...
You have several problems:
1. Insurance companies won't insure a vacant house. In the event of a loss, if they find out it was empty (and the total absence of furniture is a dead giveaway), they will deny your claim.
The reason they deny it is because the potential for damage is sky high when no one is residing in the property.
2. Cutting off the air/heat will cause a smell to develop in your home, toilets won't flush, etc. It will stink to high heavens because of the trapped air.
3. No buyer is going to PAY to have utilities turned on in their name for an inspection...the house isn't theirs and you aren't going to find someone willing to do that. That is your job as a seller.
4. The bank will never carry the insurance.
5. The Realtor is 100% correct about keeping up the maintenance...and you can get fined by the city/HOA for tall grass, etc.
6. If you are just walking away from the home b/c you want to move out of state, they WILL NOT approve your short-sale. That is a choice.
7. Get a new Realtor...yours clearly is not familiar with the terms of a short-sale and you need someone WHO IS.Answer: How would you feel if you cancelled your insurance...
How would you feel if you cancelled your insurance and the home was destroyed before you could complete the transaction? Do Not Cancel the Insurance.Answer: The utility bills are not going to be the normal amount. ...
The utility bills are not going to be the normal amount. You go to the shut off points and you shut everything down. Turn the gas off, the electric off and the water off. (Except by the pool, you may need to run that to keep the pool clean!) Tell the Realtor that you turned them off at the shut off points and when ever she shows the house she will turn them on for a few minutes and then turn them off when she is done. My house was the same way and I think the Realtor who had their name in the water bill was charge like $5 for two months.Answer: I would NOT cancel your insurance. You might get lucky and ...
I would NOT cancel your insurance. You might get lucky and have the house burn down. Your insurance company would then pay for you live somewhere else, and also rebuild the home.
You will own the home until it is closed on a sale, or you lose it to foreclosure. No one else will pay the insurance while you own the home.
You may not want to keep a "shortsale" property in pristine condition. Part of getting a shortsale approved is showing the bank that the home's market value is what you are selling it for. If a home is neglected, an appraiser hired by the bank, may also see this and report the value lower than a nicer home. This may get your sale approved.
You are not required to have the utilities turned on. However, if you don't use the utilities, then the costs may be minimal. A buyer will most likely want to inspect the heating, a/c, plumbing and electrical, and will need these turned on for their inspection. Also, who will look at your house in the dark without electricity??? You, or the buyer, may turn on the utilities for an inspection.
Every market is different, so what works inPortland, OR may not work in your market for selling your home.Question: How much will a bank accept on a short sale offer?
Up to how much do you think a lender will accept on a short sale offer based on the BPO (Broker Price Opinion)? 70%? 80%?Answer: In real estate there are two very old - yet true ...
In real estate there are two very old - yet true -expressions:
1] You [the Buyer] names the price.
They [the Seller] names the terms.
You [the Buyer] names the terms.
They [the Seller] names the price.
Somewhere in the middle there might be an agreement on price and terms.
2] A property - any property - is ONLY worth what the Buyer is willing to pay for it AND what the Seller is willing to sell it for - not one dollar more or less!
AND, when financing is involved, what the lender will appraise the property for and lend money for the mortgage.
THE ONLY way you're going to find out what the Seller's bottom line is, is to make a written offer on the property.
BTW - DON'T EVEN TRY NAMING THE PRICE AND THE TERMS. Its a total exercise in frustration and wasted time.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that isreal last name!Answer: The term for the period of which you speak on is called a ...
The term for the period of which you speak on is called a "Short Sale". Typically the bank will take 70% of the loan AFTER all expenses. This will include, but is not limited to: current taxes, deliquinet taxes, outstanding water bill, title work/ attorney fees for the seller and Realtor commissions (if any). Everything that the seller would have on their side as items of their responsibility would have to be added onto that 70%. If you do that, you will get a number that with a little effort can reward you with a bargin. The bank doesn't have to take back a property and have it on their books and the seller will not get a foreclosure on their credit. It works for everyone involved.Question: Sell home and walk away with 0, or short sale, or quit claim deed?
We have to move. We have a mortgage of $280,000 and a $20,000 home equity loan. IF we can sell it, we'd probably walk away with nothing, 0 cash after closing. Since that's not helping me, why not just walk away from the house and "give it back to the bank"? Is there a way to do this, and still buy a new home?
I don't know how the "short sale" and "quit claim deed" work, but do they hurt your credit?
We have a high income and great credit right now.
We've never missed a house payment.
We bought this house before we has kids, and now we haw 2 babies and this house is dangerous. It's has a busy road in the front and a seawall and lake in the back, and no fences. We need a safe place where my toddler isn't in grave danger if he slips out of my grip and takes off. It's a safety issue.Answer: Walk away with nothing will preserve your good credit. ...
Walk away with nothing will preserve your good credit. Otherwise you will have nothing and poor credit.
Is there a reason you can'y just keep making payments and wait for the market to turn around? It is not uncommon for people to go negative every once and a while. Just remember it is all on paper until you actually sell. If you have the high income and good credit. I'd keep on making the payments and wait for the rebound. It will happen.Answer: If you can sell for what you owe, is the best bet even if ...
If you can sell for what you owe, is the best bet even if you walk away with nothing your credit is not dinged, even a short sale may still preserver your credit, but in this market it may take six months to a year to sell
if you just walk away and the bank forecloses it will hurt your credit and it will be a few years before you can buy a house with a note, you can always pay cashAnswer: if you walk away and do a short sale - - It definitely will ...
if you walk away and do a short sale - - It definitely will hurt your credit - why would another bank give you a new mortgage if you just walked away from one?Question: Short Sale? Is it legal or possible to do a short sale from one spouse to another.?
My father and I own a home (Mom's is not on title or mortgage) which wil have lost over 25% (close to 40%) over the next year. The house is new (8 months old) and my parents occupy it. Is it possible to short sale the house to my Mother at below market value so they don't have to move? What effect will this have on my credit / for how long? This is there last stop and this way when values go back up as a family we will be gaining equity instead of trying to come out the red (negative).
More details... this is assuming my Mom qualifies for a new loan for purchase. My father is recently disabled so this should qualify as "hardship" status. Assuming the market goes down even more this year a new build house duplicate to mine will go for 150k (current 180k) while I paid 250k 8 months ago.Answer: What you are talking about is very similar to Assumptions ...
What you are talking about is very similar to Assumptions where the existing loan is assumed by someone else. For a short sale to happen it is important that the lender agrees to it. And usually not all the properties are eligible for short sale. Also, if you are current in making the payments, there is a good chance that the lender will reject the offer.
My suggestion would be, if this property is pulling both your dad and your credits down, then you can have your mom assume the loan and collectively as a family you guys can continue to pay. The market will come back up in about 2 years and you all should do well.
Here's some info on Short sale.
What is a short sale?
http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm
Will it affectCredit?
http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htmAnswer: I must say that is a great question. There are alot of folks ...
I must say that is a great question. There are alot of folks in that situation. However, I have never heard of a bank allowing that "bail-out" or "non arms length" transaction within a short sale environment. Your mother would have to purchase the home and qualify for a new mortgage with down payment, credit and income qualifying. In you and your dads case, a short sale although may not result in a deficit judgment will be treated very close to same as a foreclosure and be on your credit for 10 years.Answer: Good finance question! I know of an organization that gives ...
Good finance question! I know of an organization that gives up to $1500 to people to help them with their rent or mortgage. It's available in most US cities, I highly suggest you check it out.
http://www.help-for-mortgage-rent.org
Best of Luck.Answer: The bank I work for needs it to be an arm's length ...
The bank I work for needs it to be an arm's length transaction...IE, no family members or close friends can do a short sale. A short sale affects your credit 3-7 years. Not devastating, but it will pull it down. A suggestion if you really want to keep it is A. Assumption (but the assumee inherits the entire payment history) B. have a person not related buy it on a short sale, and either rent it back to you or sell it back to you at that price again. |
|
Bank Foreclosure
|
Garypedia.com website owner does not evaluate or guarantee the accuracy of any content available on Garypedia.com website. This website is compiled with the help of many real estate short sale related newsgroups and questions people ask about real estate short sale at various places. If you have some questions regarding real estate short sale, you may or may not find them answered here. All the questions and answers about real estate short sale are actually asked and replied by people and represents their own views about real estate short sale and related products. Some of them may not be correct, so please use these real estate short sale related answers with care. All information in this site is deemed reliable but not guaranteed. Garypedia.com web site owner shall not be responsible for any typographical errors, misinformation, and misprints and shall be held totally harmless individually.Garypedia.com is an independent provider of links to news articles. Garypedia.com contains links to sites on the internet which are owned and operated by the "External Sites". Garypedia.com is not responsible for the availability of any External Sites. Contact the site administrator or Webmaster for those External Sites if you have any concerns regarding such links or the links located on such External Sites. Garypedia.com is entirely committed to protecting the privacy of its mediapartners and their users. We use a browser feature known as a cookie. One way our cookies are useful is that they help to improve and personalize your experience by increasing a page's responsiveness and decreasing time between downloading as you browse or surf through the site. Additionally, a pixel tag is delivered with the newsfeeds themselves to organize information about online activity as a means to create anonymous profiles that reflect content preferences. No personally identifiable information is stored or collected. Any suggestions, please email us.
Copyright © 2008 Garypedia.com. All rights reserved. |