Short Sale Denied; Advice to make Bank Reconsider?
wolfgang80
15 years ago
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dave_donhoff
15 years agolast modified: 9 years agoncrealestateguy
15 years agolast modified: 9 years agoRelated Discussions
short sales - any tips on buying?
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 Realtor® 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 Realtor® 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 MoreAny experiences with Short Sales
Comments (7)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....See MoreIn IL - rent or short sale, we can't agree, house more than $100k
Comments (25)Hi ML, I think you're getting unfairly beat up. Your guy did the same thing that a lot of people did- they bought at the top of the market, thinking it was a good investment. Right now you have a "paper loss", but there is also the real cost of paying a mortgage for $200k+ vs a mortgage of That said. Truly, this is a "good" problem to have. When you and your DH look back on this years from now, you will think about how you had to deal with a place that is less than perfect and sold some land instead and you'll smile about your youth. You will be thankful that you could afford the mistake and that you weren't bankrupted or foreclosed upon. This is still a problem, but it's a problem that is livable. You aren't facing cancer, injury, etc. In a few years it might make more sense to rent because rents generally are rising now. In fact, this might eventually turn into a cash cow if you ended up renting it. You might end up making much more money on it then you would have if you could short sell it now- plus there will be costs associated with a short sell, even if it were possible (it sounds like it really isn't.) This is just the start of the story for you and your DH. Don't let this come between the two of you. There are all kinds of ways to have fun with it and make it a positive. My FIL is a contractor- when the crash started, he reno'd his kitchen and bathroom and took a lot of before/after pics. He started a website for his business with the pics. His wife was delighted to have a new kitchen and bathroom, and he picked up business. Look for the win-win. You're smart and young, it gets better!...See MoreSelling Via Short Sale ~ Any Advice?
Comments (4)No personal experience, but things I've heard from others on the financial side: 1. If you want the bank (either of the mortgage holders) to write off the mortgage balances over and above the sale price, they will not do so unless you're behind on your mortgage payments. 2. Getting behind on your payments and doing a short sale will put a pretty hefty ding in your credit that it'll take a few years to heal from. 3. Banks (especially the 2nd mortgage holder) will sometimes negotiate something between you having to sign a note for the whole difference in sale price and mortgage and them forgiving the whole thing. Good luck. It's not an easy process....See Moreruffian1
15 years agolast modified: 9 years agoterezosa / terriks
15 years agolast modified: 9 years agodave_donhoff
15 years agolast modified: 9 years agojeri
15 years agolast modified: 9 years agodave_donhoff
15 years agolast modified: 9 years agoncrealestateguy
15 years agolast modified: 9 years agobrickeyee
15 years agolast modified: 9 years agotriciae
15 years agolast modified: 9 years agotrianglejohn
15 years agolast modified: 9 years agodave_donhoff
15 years agolast modified: 9 years agotriciae
15 years agolast modified: 9 years agotrianglejohn
15 years agolast modified: 9 years agotriciae
15 years agolast modified: 9 years agotrianglejohn
15 years agolast modified: 9 years agobrickeyee
15 years agolast modified: 9 years ago
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