I'm sitting here wondering with all of these people losing their houses, can someone attempt to sale their house if they owe more that what they can get for it. How does that work? How do they work with the negative equity? Do they get some kind of unsecured loan or something? Or do they just end up losing their house in the end becuase they can 't sale for what they want?
2007-09-10 17:51:23 · 5 answers · asked by Mr. Ish 2 in Business & Finance ➔ Renting & Real Estate
How do homeowners usually make up the difference after the sle is done. Say 50K left over to pay how can the average person pay back a dept like that?
2007-09-10 18:06:14 · update #1
It can be done. There are usually some negative consequences. The process is called a "short sale" or a "short pay sale". The lender agrees to compromise the note rather than sell the property in foreclosure or take it back. This is done in the context of a real offer to purchase by a legitimate buyer and hardship petition by the seller to the lender. I handled one last year and the bank agreed to a discount of over $200,000 on their note. This was a case of extreme hardship due to medical problems and a house that was something of a "white elephant". The debt forgiveness is usually a taxable event. The seller gets a 1099 form from the bank for the amount of the discount, just as if the money were paid. But the tax consequences are minor and deferred compared to the credit devastation caused by a foreclosure. Contact a reputable local Realtor to see is s/he will take it on as a short sale. Be honest about your situation. Also see my blog article on the subject
http://realinsight.blogspot.com/2007/02/short-sale-is-not-discounted-beach-wear.html
2007-09-10 18:10:46 · answer #1 · answered by artwhiterealtor 3 · 3⤊ 0⤋
They loose the house and they owe the difference between what the bank got and what they still owed .
If they sell at a loss , they owe the lender the difference .
Regardless , if you take out a loan for $300K and only get them back $250 from a sale (by you or by the lender at the foreclosure sale) , you still owe the lender another $50K .
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2007-09-10 17:58:22 · answer #2 · answered by kate 7 · 0⤊ 1⤋
It's pretty simple. You just bring a check to closing.
There is no rule that you have to break even or make a profit when selling real estate.
People do what they have to do to get out of a property. You borrow money from friends. You sell some things to bring in cash. You dip into savings or 401K. Or you just don't sell. Rent out rooms. Rent the whole house and wait.
2007-09-10 18:48:26 · answer #3 · answered by rochelletherealtor 2 · 1⤊ 0⤋
You don't must use a Realtor as your promoting agent, nonetheless, become aware of that dealers representing customers might carry a certified candidate, and will probably be anticipating a few variety of reimbursement, in general a minimum of two.four relying for your marketplace. Will you be equipped to put it up for sale at the degree that a promoting Realtor would, or do you have already got any person in brain?
2016-09-05 09:47:09 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You can sell you house at any time for any amount you want, after all it is your house. That being said you will close and have to pay, the real estate commissions, closing costs and the loan balance which can leave you writing a check at closing.
2007-09-10 18:19:32 · answer #5 · answered by Anonymous · 1⤊ 1⤋