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Real Estate Short Sale Questions and Answers |
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Question: Closing costs included in a short sale? Extended Closing date?
We found a really great house, it is a short sale, listed at 119,900. Homes go for 150-160,000 in this neighborhood and we found out from the seller's agent that the bank will go as low as 115,000. My question is that we are willing to pay 119,900 if we can include closing costs. Is this reasonable?
Also, we are in an apartment until June 30-we want to find a house and close by June 1st but hopefully not before May 15, to avoid a double payment in June (rent and mortgage)
The sellers agent said the bank wants to close in 30-45 days, would they possibly close in 60 days if its a good offer? I just dont know if we should try to get it if banks wont negotiate a closing date. We have found another house we like too, but its listed for more than we ideally want to pay. Any advice is appreciated.Answer: Getting a house for well under the market value is a great ...
Getting a house for well under the market value is a great way to buy! Short sales do give you this advantage. The problenm is that banks are already losing on the sale being discounted and every day the property stays on their books is a lost. At the beginning of each month, the banks like to have less inventory that is at a loss to report. For these reasons, banks do not like long closing dates! This isexperience of doing Short Sales. Keep in mind that you will have nearly two months before your first mortgage is due. This will offset the rent that may be due, so you won't have to double up on payments.
If it's a great buy, don't let one rental payment through you off. Ask your lender when the first mortgage payment will be due, under various closing dates senarios.Answer: If you try to close in June your problem will be that most ...
If you try to close in June your problem will be that most lenders so your mortgage company wont lock you in for that timeframe. The selling bank doesnt want to wait because they want it off their books ASAP. Check your Lease agreement usually there is some clause in there that allows you to get out of it if you are purchasing a house. The selling bank most likely will agree to a 119K purchase price and allow for seller concessions. IT just looks better on the books. You could also try negotiating a closing date ahead of the occupancy date. meaning you close on the sale of the house in 30 days but dont take posession till a time after that. Its unusual but it does happen in cases of short sales adn foreclosures.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.housing-assistance.org
Best of Luck.Question: Which is cheaper a short sale or a forclouse???
Please let me know which is cheaper, I bough a house that we put 75,000 cash as a down payment, all of our money, all our savings from a previous house sale, we left nothing for us, now the house is worth 250,000, the house was 375,000 when we bought it we lost our jobs, and our money we are 4 payments behind, I dont care about the credit no more, I just want to know what is cheaper to do a short sale (if the bank will ever aproved) or a forclouse.Answer: First, I am sorry to hear about your situation. I hope ...
First, I am sorry to hear about your situation. I hope somehow things work out for you and your family. As for the sale, it sounds like you really don't have much say in the matter. If the bank rejects a short sale offer, they are saying in effect they would rather take back the property and try their hand at selling it for more. So if a short sale doesn't happen a foreclosure will and you may not have any say in the decision. Good luck.Answer: Foreclosure clears the debt as the bank is taking back the ...
Foreclosure clears the debt as the bank is taking back the home. Short sale will leave you with the deficiency balance as an obligation. Only you can decide what is the best for you under the circumstances. Have you communicated this situation to the lender? Most have Loss Migration Departments for these situations.Answer: A Short sale can be cheaper if the lender carrying your ...
A Short sale can be cheaper if the lender carrying your mortgage releases you of responsibility for the deficiency amount brought about by the short sale.
I recommend you speak to an attorney and ask for information regarding the following:
- Returning the "Deed in Lieu of Foreclosure"
- Chapter 7 Bankruptcy
Foreclosure law varies by state. To try and give you specific advice would do you a disservice.
Here are some national organizations/ agencyies which might be able to help you.
Fair Housing Resources / Advocacy and Legal Organizations
US Department of Housing and Urban Development's Illinois web site. Description of HUD's Midwest Fair Housing HUB and Program center as well as ...
www.hud.gov/local/il/working/localpo/fheochi.cfm
Joint Center for Housing Studies Resources - Housing Advocacy ...
Resources: Housing Advocacy Organizations and Intermediaries ...
www.jchs.harvard.edu/resources/housing_advocacy_organizations.htm
Federal Trade Commision - Mortgage Payments Sending You Reeling? Here?s What to Do
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm
This last web address is very informative.
Good luck.
Edit: If the foreclosure goes through you can (depending on state law) still owe a deficiency debt to your lender. The loss could hold a Federal Income Tax consequence. The other answer given you well intentioned is poor informationally.Question: Is this good news for a short sale?
We put in an offer on a short sale a little over 2 weeks ago and the bank called and asked for a copy of our certified funds (so a certified check) for proof. They wanted the check made out to them and a copy of it. Not the actual check however. So today we went to get the check and faxed a copy to our agent who sent it in. Is this a good thing? Does this mean they are considering the offer? Also, there was one other offer that was not as good is ours, but the sellers agent only sent in our offer...is she holding the other offer as back up? She says that the bank only has our offer.Answer: Yes, it means the mortgage holder wants to make sure the ...
Yes, it means the mortgage holder wants to make sure the money is there to close the deal before they show their hand on what they are willing to take on the short sale.Answer: Your realtor should have requested this before he/she sent ...
Your realtor should have requested this before he/she sent in the offer.
But yes, this is customary to verify earnest money funds.
Many lenders have so many short sales and they will not take the time to make an offer without knowing you are qualified. Your agent also should have sent in your pre-approval as well, another aspect of your qualifications as a buyer.
Realtors often hold back up offers. You could find another house next week and back out, so they want other back ups.
You're not tied to an offer you make in a short sale until you have an accepted offer and have expired your due dillegence period as per your contract.
Good Luck, I hope you get the houseQuestion: What is a "short sale"? What happens if there is a balance left on the property after it is sold?
What can be done if more is owed on the property than the value?Answer: A short sale is when you sell a property (with the ...
A short sale is when you sell a property (with the permission of your bank) for LESS than what is currently owed.
You need your banks permission in order to complete a short-sale.
If you have an offer on your home for less than what is owed - you can contact Loss Mitigation at your bank and begin the process.
I hope that helps.
Erik De Jesus
CA Mtg Broker
(888) 667-2655Answer: A short sale is when a bank or mortgage lender agrees to ...
A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.
Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.
A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.
In short; A short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.Answer: You don't....when the bank agrees to the short sale, ...
You don't....when the bank agrees to the short sale, they agree to waive that amount and not hold you responsible for it.
Remember you need to get permission from the bank to do the short sale long before you put the house on the market...banks don't always approve short sales...that is why you have to get it first.Question: Is it possible for to do short sales in NC without acquiring my own mortgage, As taught in Short Sale Magic?
I recently purchaced Tom Butler's Short Sale Magic course and all the information contained in the material seems very benificial. However I know that North Carolina has laws in place that hurt some Real Estate Reseller's. Can anyone tell me a legal way to control Real Estate in NC without aquiring personal financing nor triggering the "Due on Sale" clause that is in most mortgages.
An example of this would be assuming the property "Subject To" current owners mortgage. Not sure if this is legal in NC, but any legal creative financing ideas are welcomed...Answer: u are confusing your state's laws
with tort ...
u are confusing your state's laws with tort laws.
Mortgage companies have their own polices re Due on sale--that has nothing to do with a state law.
States must permit their courts to JUDGE whether contracts are fair and if one party seems harmed, to cure the wrong.
Being involved in short sales during the national foreclosure debacle is like selling life preservers to people who have jumped off a sinking ship.
if you wish to gain legal control of any property, REGARDLESS of anyone's mortgage, you must have a contract signed by the seller.
IN many cases, if the seller has a mortgage [behind or not in payments], once the seller has agreed to sell the home at close, the mortgage must be paid.
it is totally legal to assign a contract. however, inbetween getting legal rights to the home by having the seller sign the contract and finding
a buyer, the short seller is legally responsible and some seminar holders find this bad. They do so because it slows their biz.
All states are responsible for protecting home owners. MOst short sellers do not care to provide protection for sellers; thus the rub.
lastly;i was offered a fast check for $500 a few years ago when sellinghome [which I did sell to others] and if I took the check, I was obligated
to turn over the house and sign the deed to the short buyer but he refused to go onto the lien. I told him that was absurd; lien holders need
needs to protect them and visa versa. He was a crook and I had nailed him. I did not take the check. |
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