If you are facing a foreclosure and you owe more than your house is worth, does trying to sell it help? Knowing you won't get the amount that you owe, is it even worth putting it on the market? The lender(s) and borrower have already communicated, but financial situations are not getting any better and a foreclosure is right around the corner. No family to borrow from, none of us have any $$$ to lend. So what's a person to do? Just let foreclosure happen?
2007-01-23 13:07:53 · 6 answers · asked by kalamibe 2 in Business & Finance ➔ Renting & Real Estate
not unless u do not care about your credit. r u going 2 want 2 buy another house soon? Call and get some free advice from a lawyer.
2007-01-23 13:15:57 · answer #1 · answered by weezie 2 · 0⤊ 0⤋
Your best bet might be to find someone who wants to buy the property and put together a short sale offer to the lender.
A short sale is when the lender will accept less than what they are owed and will release the lien on the house. Many real estate investors do these types of deals fairly often.
It's good that the borrower and lender have remained in communication, since they will be more willing now to grant the borrowers additional time to put together a short sale.
The main cause for worry is if the short sale is denied, then there may not be much time left to work out another solution. Also, the debt that the lender forgives in a short sale is considered regular income to the borrower. That means that the borrower will have to pay taxes on the amount of the mortgage that they don't have to pay. This isn't as bad as losing a home and being evicted, but be prepared for a higher tax bill if the lender accepts a short sale. And if the amount of debt forgiven is low, then there may not be a lot of income to report and pay taxes on anyway.
Good luck, hopefully everything works out.
ForeclosureFish
http://www.foreclosurefish.com/
2007-01-24 19:40:14 · answer #2 · answered by foreclosurefish 1 · 0⤊ 0⤋
Try to do a "Short Sale" on the property where you ask the lender to accept less than what is owed on the property. Contact the lender and ask for a short sale package. Complete the package and send back to the lender. In the mean time, try to sale the property for as much as you can or as much as it is worth. Submit the contract to the lender to see if the lender is willing to accept the offer you get to buy the property.
2007-01-23 21:14:54 · answer #3 · answered by reel tur 2 · 0⤊ 0⤋
Call the lender and ask what they think you should do. The lender is looking for the best way out. You're looking for the best way out. Don't make the relationship adversarial when you're both looking for the same thing. Call the bank and ask. (They'll probably help you with a short sale.)
2007-01-23 22:19:10 · answer #4 · answered by CJKatl 4 · 0⤊ 0⤋
If your lender will allow you to see it as a "short sale", that is one way out. The lender &/or attorney has to agree to taking less on the mortgage than what was borrowed. That is a short sale.
2007-01-24 02:19:31 · answer #5 · answered by W. E 5 · 0⤊ 0⤋
Find a real estate agent that is able to do a short sale. If you're in Southern California,let me know and I'll see if I can help.
Regards
2007-01-24 05:44:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋