What is a short sale?
Will lenders approve the buyer?
I have a buyer, what should I do!
I'm not yet late on my payments, and im not in a forclosed situation YET. But, I can't pay this month, i'm hoping to "short sale" before the 30days.
I need to do this asap.... I don't want it to affect my credit. as i need to rent elswhere, and have a baby.
Thanks!
2007-09-04 05:41:07 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In a short sale....the Lender agrees to accept less than the amount you owe so you can sell your house to someone at a "lower sale price" than what you owe.... This doesnt effect your credit as a foreclosure but it still is potentially derogatory... you definitely need to see a REAL ESTATE ATTORNEY before you think about doing it becasue the difference between the two prices can/will be placed on your credit as an outstanding balance due/ written off/ or realeased depending on the negotiations.
2007-09-04 05:54:01 · answer #1 · answered by Rutroh 6 · 2⤊ 0⤋
You are OK! Take a breath, they don't want it to be bad either. The short sale will keep you from a foreclosure. If you have a buyer and aren't in default you are in a perfect situation. They will wait for you to close and you won't experience any real impact. Get the buyer through all of the qualification and then their bank will do an appraisal on the house to be sure it's worth what they have offered to pay. Then it will close and you will hopefully walk away with a little cash. There are many, many people who wish they were in as good a shape as you are. The next step is important. You will be able to rent but, get some advice on that. It may be a better idea to buy something that you can afford and not have to face the possible tax impact of a gain. Talk to a financial advisor (like a CPA) not the REALTOR who might really need a sale. To see if now is a better time to find something else to buy, something more affordable. (and AT A FIXED RATE!) Good Luck
2007-09-04 12:55:23 · answer #2 · answered by helprhome 5 · 0⤊ 0⤋
Short sale is talking the lender into taking less money (maybe half according to articles in newspaper) than you owe them If they think they can get more money with less expenditure by going to foreclosure they will do that. If they think they would get more by settling right now for a smaller sum they will do that. Don't forget that if the bank has an auction they need to pay the auctioneer 10% of the sale price. If there are no good offers at the auction the bank would need to pay that 10% plus buy the house plus pay a buyer's premium that might be 25% so it is not a guaranteed windfall for them.
If you have a potential buyer ask the mortgage holder if they will take that amount to release their lien. The lender will not need to approve the buyer. All they need to know is that someone will give a mortgage to the buyer of your house and they will collect that money at the new settlement.
It has nothing to do with humans or ethics anymore because it is not your friendly neighborhood bank. It is sellers of the mortgages, resellers, packagers, resellers etc.
2007-09-04 12:55:06 · answer #3 · answered by Rich Z 7 · 1⤊ 1⤋
Why can't you make payments anymore? Are you still working? Has your rate gone up? There are possibilities to refinance. A short sale is selling the house for less than what you owe. The buyers negotiate a price with the lenders.
2007-09-04 21:14:03 · answer #4 · answered by Refinance is still an option 1 · 0⤊ 0⤋
There are many things you can do. You can refinance for a lower rate, rent the property out for more than the mortgage, and make a living off of it. I think that a short sale is a crop out, and it's no sure thing that you will sell in that time.
I am not sure of this either, but I think you can sign your mortgage over to someone else, and get some money back for what you have put into it. Best wishes!
2007-09-04 12:48:12 · answer #5 · answered by Anonymous · 0⤊ 3⤋
do this start renting some rooms you have that usually helps, charge less for the room then normally for that area, college students are back in class, post some ads on craigslist.
good luck
save your home
I am buying a home now, looking around but I narrowed it down, and believe me you will get help.
2007-09-04 14:11:49 · answer #6 · answered by buyingahouse 1 · 0⤊ 0⤋
You need to get your real estate agent to get the approval amount ASAP. Short sales take 3-4 months, you should have not waited until the last minute.
2007-09-04 12:46:04 · answer #7 · answered by Landlord 7 · 2⤊ 2⤋
http://www.mortgagenewsdaily.com/752005_Real_Estate_Short_Sale.asp
2007-09-04 12:45:08 · answer #8 · answered by Anonymous · 1⤊ 1⤋