Any experiences with Short Sales

13 years ago

I posted on the household finances with my situation. Not alot of activity over there and was hoping maybe some of you have any experiences/advice to share.

Our situation is not one of financial hardship. My husband eyesight has deteriorated over the last year. He has a corneal disease and his eyes have rejected the contacts that are basically the last option before cornea transplants. Right now he's just barely legal to drive in the state of Georgia with the lenses he can tolerate. He commutes anywhere from 2-4 hours a day depending on Atlanta traffic. We have to move closer to his job for his safety.

Our house has been on the market going on 7 months. We just lowered by 10K to $139900. Short sale down the street closed for $110000. Our house still needs about $15-20K in updates (roof, remainder of Louisiana-Pacific siding, HVAC and windows). These items still work, but will be noted by any inspector. We are listed for $5K less than what we paid and we have sunk several thousand $$ into this house. We are already listed at our rock bottom and can't go any lower...it'll have to be full offer at this price and I'm not confident that's going to happen.

I spoke with Wells Fargo about the short sale process. The rep told me we would qualify for hardship short sale, but would have to move first and then get behind in our payments. The rational is that we can't afford two carry two households. That's pretty scary. Anyone have any experience working it out with their bank to stay current on payments, but just take an offer lower than the payoff balance? I'm learning that each bank is different, but maybe a real estate lawyer could negotiate some of their terms??

My husband and I will seek out legal advice, but in the meantime I'm trying to learn everything I can. Thanks for any advice offered!!

Sort by:Oldest

Comments (7)

lyfia
13 years ago
What are your options for taking out a personal loan or using some other line of credit to make up the difference to pay of the existing mortgage?

Then at least you can sell and move. Yes you'll still have to pay what you owe on the line of credit, but it is an option since your not having a financial hardship.
bleigh
Original Author
13 years ago
We already have a personal loan that we took out for the house and the bank will not increase it at this time. We are planning on using our tax refund and beefing up savings over the spring/summer to see if that might give us enough to cover a difference should we get less than full asking price.
Related Discussions
Any experience with these plants from the SABG plant sale?
Q
Comments (8)
Roselee, I have the first three. The red cestrum, I would have lost twice already if I hadn't taken some cuttings. I'm bound and determined to find a place it really likes. For me, in full sun it wilts really bad. Too much shade and it's spindly and flops. I've read that in Florida, it reseeds to the point of being a pest. I haven't seen that. The Ruellia elegans is the only ruellia I have anymore. I do still have to pull up the dwarf purple and pink ones occasionally. The one you describe above (Red Christmas Pride) I accidentally killed. The R. elegan I like. The blooms are pretty, it's not real invasive, but does pop up here and there, but nothing like the others. The plant is kind of straggle, but when grown among other plants, you don't notice. The Bellyache bush I got at your fall swap last year. It was about 8" tall, and is now about 3' tall, planted in filtered sun under the pecan tree. I really like the foliage. It was protected from freezing last winter, so can't help you on hardiness. Jim
...See More
short sales - any tips on buying?
Q
Comments (9)
Hi Kelton, (Special tip; reconsider the initials... they are used to denote "bankruptcy" in the biz... ;~) The realtor said it was a short sale, and I had to ask "what's that mean?". So, she says that the bank is selling the house and claims that the price is based on what is owed on the house. *IF* you are recalling and accurately re-stating what the RealtorÂ® actually said, she is a dolt. A) A shortsale is NOT sold by a bank, but by the owner who is in default. The bank retains effective right to kill the deal if the offer is too low by refusing to release their lien for that offer and then proceed to foreclosure & auction... but the bank cannot "own" the home until after foreclosure, and therefore cannot "SELL" the home, B) A shortsale (properly negotiated) is typically struck at roughly the actual comparable-supported market price, or 80%-ish of the bank's lien note. If the RealtorÂ® you were talking to was the listing agent (or any affiliate of the listing agent) then they're further blowing smoke up your yoohoo. As others have already explained, the short-sale process cannot be relied on to happen quickly. If you are shopping for your personal nest, you must decide if you are willing to sit out the 3-12 month chaotic and unpredictable negotiation process... most nest-shoppers have no such patience for the B.S. (In fact, very few profit-hungry greedy-bastahd INVESTORS have such patience!) If you DO, you ought to be prepared for a 3-12 month reality, with a non-insignificant chance the whole thing could collapse and become unavailable out from under your offer at any time (even after you are 8 months & 3 weeks into it) because the seller dies, declares bankruptcy, or initiates (or defends) a lawsuit. Luck! Dave Donhoff Leverage Planner (Greedy-bastahd real estate investor, and professional shortsale negotiator)
...See More
Cash offer on a short sale: advice/experience?
Q
Comments (4)
Best of luck - I think you are going to need it. The chances of getting a short sale through with 2 lenders is pretty small. Just by the numbers, if a house is worth $450k, why would the first mortgage holder take less than $450k? You might have a little wiggle room for the convenience of getting it off their books, but not much. Your $400k offer is going to net about $375k, so they will be losing $75k. That isn't even counting the second mortgage. Obviously, the second lender isn't going to approve unless they get something, so that loss to the first actually has to be larger. It is possible that they will accept your offer, but I don't think it is likely. The first lender is better off just foreclosing and trying to sell at market value.
...See More
Triciae, question about a short sale, fromt the lender side.
Q
Comments (8)
Ugh. A google search found that my experience is quite the norm. This is an excerpt from another post about their attempt to reach this company. It's so frighteningly similar to my experience I could have written it myself: ABCMortgage should be avoided at all costs. I would rather live in a box than live in a mansion that has anything to do with ABC. I donÂt anger easily and I'm a reasonable and patient person--- IÂm in customer service myself---but the customer service, or should I say "lack of customer service" at ABC is appalling. My experience on trying to call to CORRECT THEIR MISTAKE and get information on the status of my loan... ABC--hello Me---yes, i have been transferred a few times with no resolution and I would like to speak with somebody about--- ABC interrupts---your property address? Me---well, hang on... the person I just spoke with blindly transferred me to the wrong dept. as soon as I gave her my address and-- ABC interrupting again----sir, I need your address to bring up your account Me---ok, but I want to explain my situation before you transfer me...its 1234 main street any town USA and--- ABC interrupts---please hold and then IÂm transferred again. Hello (unintelligible) dept. Me---yes, I am trying to resolve a problem with my mortgage and I was transferred to---- ABC interrupts---your property address please? (repeat above) Transferred again----only this time goes into someoneÂs voice mail with the recorded message saying it might be up to 4 DAYS before I get a return call...so, I call back again....same process as above---only this time, I demand to speak with a manager...she asks me for what? I tell her that I have a problem that I cant GET RESOLVED BECAUSE I KEEP GETTING TRANSFERRED TO PEOPLE WHO DONT CARE TO LISTEN! I then sternly, not rudely, tell her I want to speak with a manager now and I dont want to kept on hold all day...this is a serious issue which needs to be resolved immediately. then---you guessed it- ABC--- hold please, click transfer, phone rings, voice mail, tone to leave message, disconnect. Believe it or not, after this hour of getting nowhere, I called back again---same process; only this time, I got transferred to someoneÂs voicemail who was on vacation!!!!! Unbelievable. What eventually happened? Nothing....oh except there lack of assistance on resolving THEIR mistake created a domino effect of financial problems that have perpetuated to the point OF RUINING MY LIFE. ABC mortgage is terrible and should not be in business...do the world a favor and go into organized crime or something, but donÂt call yourself a company...your nothing but a bunch of people who donÂt care about anything. Looks like I have my work cut out for me.....
...See More
sylviatexas1
13 years ago
I think you need to talk this over with an attorney, maybe a bankruptcy lawyer;
it sounds like you're planning to spend every penny you have or can get on this house, & then count on the lender to approve a short sale.

& if I were in your shoes, I'd want to know why the lender insisted on my moving out before making a commitment to accept a short sale;
I'd be afraid that the lender wanted me to move to make it easier to take possession at foreclosure.

I wish you the best.
brickeyee
13 years ago
If you have a short sale it may be very difficult to get another mortgage.

The advice to purchase first may have been based on that.

You need to talk with a lawyer about your options.

Unless there is a law prohibiting it (some states have them, AKA 'non-recourse') the lender can always sue you for a deficiency from a foreclosure (part of the short sale process is getting this option off the table).
sylviatexas1
13 years ago
sorry, re-read part of your original post;
no lender ever agrees to accept less than the balance as payoff if the mortgagor is current on payments.

As long as you can make the payment, they'll keep taking it.

I don't think the lender told OP to purchase another house, just to move out of this one.

& that sounds like the lender is manuveuring the homeowner into a position favorable to the lender & disastrous to the homeowner.

Short sales & foreclosures are much too important to your future to go by what we can offer you on a forum;
please get good legal advice as fast as you can-& before you agree to anything with the lender.

I wish you the best.
bleigh
Original Author
13 years ago
My husband and I are getting referrals for real estate lawyers through a couple of his lawyer friends that practice in other areas. Definitely going to get legal advice before attempting SS. I agree the advice from the bank was concerning. We are not planning on buying another home for at least a couple of years. We are working on becoming debt free and want to have a substantial down payment for the next house. Also want to have freedom to live in a couple of areas closer to husband's work before deciding where to purchase. We do live in a state where they can come for the balance.

Guess I was just hoping someone had been through something similar and could share some of their experience.
LoveInTheHouse
13 years ago
I'm real sorry you're going through this. I don't have any experience. I just wanted to say that I hope everything works out the way you want.

What I always tell my friends is, "Don't forget--the bank is not your friend. Don't trust them!"

Any experiences with Short Sales

Comments (7)

lyfia

bleigh
Original Author

Related Discussions

sylviatexas1

brickeyee

sylviatexas1

bleigh
Original Author

LoveInTheHouse

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Any experiences with Short Sales

Comments (7)

lyfia

bleighOriginal Author

Related Discussions

sylviatexas1

brickeyee

sylviatexas1

bleighOriginal Author

LoveInTheHouse

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

bleigh
Original Author

bleigh
Original Author