If a house is about to go into foreclosure, what does it mean to do a quick sale?

Answer 1

I think what you are referring to is a “Short Sale” this is when the lender agrees to a certain amount of money to pay off the loan in it’s entirety or partially.

A person goes in talk to the current owner of a property that is in foreclosure or about to go into foreclosure.

This person gathers information about the property, by inspecting it for any damage, records this information as well as the cost to repair any and all damage. Take several pictures of the property to include damage inside and outside the property.

He then call the lender and request a “Short Sale” indicating all damage to the property cost to cure the damage, back payments that are accumulating on the property, tells them the owner is planning to move which more damage will be done to the property since no one will be living there.

The lender takes all this into consideration, makes a decision to find out the value of the property do they send a realtor that is familiar to the area out to inspect the property, take a few pictures of the property. The realtor once he has completed his evaluation of the property along with the pictures he has taken send this information to the lender. While the realtor is at the house the person that want to conduct the short sale is there also pointing out any damage they think is important to be included in the evaluation report to the lender.

Once the lender has received this information, he has to make a decision as to go with the short sale or continue to lose money in the foreclosure, knowing the owner is scheduled to move and a possibility of more damage.

The lender agrees to the short sale, he and the person putting together the short sale agree on a price of $250,000 as what the lender will take to pay off the loan and any other fees owed to the lender. The real value fixed up is some where around $330,000.

Now the person putting this sale together goes back to the current owner, tell him a short sale is possible and what does he desire for his equity in the property. They agree on a figure of $10,000 for him to move.

The person now advertise that a house is available for sale below market value. A buyer emerges to purchase the property. The person selling the house make a deal with the new buyer of $320,000 and a $10,000 toward the repair of the property.

A closing agent is retained to do the closing as well as title company to take care of the title work in transferring the title from the old owner to the new owner.

The transaction is complete, the closing officer pays the lender $250,000, the past owner $10,000, credit the new owner with $10,000 at closing, and pays the person that put the “Short Sale” together the remaining money of approximately $50,000. Now there is closing cost that someone has to pay so that will have to be paid.

Everyone is happy the old owner got $10,000 to start over as well as his name is no longer on the mortgage. The lender is happy they are paid off, the foreclosure is over, they don’t have an REO. The person that purchased the house is happy even though they will have to do some repairing of the property they got $10,000 to assist in that as well as $10,000 worth of equity. The person that put the short sale together is happy because he got paid for making everyone involved in the transaction happy.

I hope this is of some use to you, good luck.

"FIGHT ON"

Answer 2

There are many companies out there ready to take advantage of your bad situation. They will buy your house, for far less than it's worth. The only benifit is you sell the house and aviod the foreclosure, but you will probably still owe on the loan balance, and may be able to negotiate better terms and payments to settle the balance.

Answer 3

Basically that you are going to sell the house quickly. Sometimes at a loss to pay of the remainder of the mortgage and avoid foreclosure. Nobody wants that on their credit so it is usually a route many people choose.

Answer 4

Quick sale is when you sell the house before the bank takes it.

Answer 5

I think you mean a "quit" close.....not quick, although it IS quick. It is a way of tranfering ownership and selling something on the spot, however it is a very dangerous thing to do

Answer 6

a quick sale is only to pay off the bank loan, but this will still be on your credit report.

Answer 7

they'll sell it for much cheaper than its worth to avoid the foreclosure.. because it looks horrid on credit (forclosure does)

As in a 150k house could sell for 50k

Answer 8

Don't worry it's going to be happening to a lot of people over the coming few years.