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Answers (9)
- Georgina OBryan, "GOBryan1"
- Contributions:483
A Short Sale is designed for hardship situations so the lender may or may not approve one. Also, understand that your credit will have a ding in it for 3 years before you can obtain a federally backed loan, so you're either going to have to rent a place, which is a waste of money since you're paying someone else's mortgage OR live with someone.
If you owe $260k and it's currently worth $165k, that's pretty common and it doesn't mean that it won't reach $260k again. It'll just take a while before it does. Real Estate is an ever changing market. Your issue is that it's too small for you and not really the value vs the ever-changing market.
Weigh your options carefully and your situation to see if it's something that will be beneficial to you. You may wish to consult with an attorney about these options because you can still be stuck paying a deficit on the difference. Then you are out a house and still stuck paying the difference for something you no longer have, which in your case, is around $95k.
I would probably stick it out, if a hardship is not the issue and keep the house. You can always consider renting it out until the market improves.
If you owe $260k and it's currently worth $165k, that's pretty common and it doesn't mean that it won't reach $260k again. It'll just take a while before it does. Real Estate is an ever changing market. Your issue is that it's too small for you and not really the value vs the ever-changing market.
Weigh your options carefully and your situation to see if it's something that will be beneficial to you. You may wish to consult with an attorney about these options because you can still be stuck paying a deficit on the difference. Then you are out a house and still stuck paying the difference for something you no longer have, which in your case, is around $95k.
I would probably stick it out, if a hardship is not the issue and keep the house. You can always consider renting it out until the market improves.
- Tom Shea, "tomsheahomes"
- Contributions:155
Hi Anne
There is no simple or easy answer for a question like yours. The consequences of walking away from your home can be severe whether you attempt a short sale or just walk away.
You should talk to a Realtor with short sale experience but you should also consult with an Attorney and perhaps an Accountant to get a full understanding of all your options.
I would be happy to help. Tom
There is no simple or easy answer for a question like yours. The consequences of walking away from your home can be severe whether you attempt a short sale or just walk away.
You should talk to a Realtor with short sale experience but you should also consult with an Attorney and perhaps an Accountant to get a full understanding of all your options.
I would be happy to help. Tom
- Chris & Cathy Connolly, "Connolly Team"
- Contributions:85
Hi Ann-
The best way to evaluate you situation, is to meet with a qualified Realtor. I can do a comparative market analysis on your home. Then I can go over what would be involved in the short sale of your home. My husband and I have many years experience in real estate and have handled many short sales. Please give me a call, if you have further questions or if you would like to schedule an appointment to meet.
[contact info removed by moderator]
The best way to evaluate you situation, is to meet with a qualified Realtor. I can do a comparative market analysis on your home. Then I can go over what would be involved in the short sale of your home. My husband and I have many years experience in real estate and have handled many short sales. Please give me a call, if you have further questions or if you would like to schedule an appointment to meet.
[contact info removed by moderator]
- Teddy Jagessar, "tjagessar"
- Contributions:6
If you have a hardship - certainly consider a short sale
- cy1652
- Contributions:6
- sunnyview
- Contributions:25139
Banks want a compelling story or they will say no. If you don't have a hardship story, they will not work with you if you can continue to pay even if that is not what is best for your family. Contact the bank with your hardship and request a short sale in writing. You will need to look over the hardship qualifications available online to see what they want to hear for the best results from the bank making the decision. The bank does not care about you, your kids college or the fact that your house is too small. Contact a local agent and get a CMA done for a a 45-60 day sale price in your current market. Put the house on the market at that price as a short sale and send the offer to the bank. Make plan and do not take no for an answer. Give the bank the choice of short sale in hand or foreclosure. Hopefully they will make the smart choice.
- Kenny Wagner, "kennywagner"
- Contributions:10
It's a misconception to think that you have to be behind in payments or have a financial hardship in regards to affording the payment.
It's true as previously stated by wetdawgs that the banks won't look favorably or like at what you've stated above as a hardship but more of a buyers regret or "my house is worth less so I don't want to continue paying the note" situation. But if you have to sell...you have to sell. I just wouldn't put it that way in your hardship letter.
The fact of the matter is your hardship along with everyone else is that your house is worth less than what you owe...and you need to move. The specifics of why you need to move don't necessarily have to be disclosed but the fact that you have to move and you can't sell your house for the full amount owed is enough of a distressed situation&reason to sell short sale.
Keep in mind that not everyone who is short selling their house is because of a financial hardship. People still have to move for jobs, schools, quality of life, opportunity et al.
It's true as previously stated by wetdawgs that the banks won't look favorably or like at what you've stated above as a hardship but more of a buyers regret or "my house is worth less so I don't want to continue paying the note" situation. But if you have to sell...you have to sell. I just wouldn't put it that way in your hardship letter.
The fact of the matter is your hardship along with everyone else is that your house is worth less than what you owe...and you need to move. The specifics of why you need to move don't necessarily have to be disclosed but the fact that you have to move and you can't sell your house for the full amount owed is enough of a distressed situation&reason to sell short sale.
Keep in mind that not everyone who is short selling their house is because of a financial hardship. People still have to move for jobs, schools, quality of life, opportunity et al.
- Linda Bassitt PA, "LindaBassittPA"
- Contributions:797
Wetdawgs is right. Most lenders won't even look over your short sale application until you obtain a buyer and a written offer. Once you do, you submit the offer plus the following documents (but not limited to) W2's, bank statements, letter of hardship, etc. so that the lender can review your file and see if you qualify for the short sale. It's worth a try listing the home for sale at the market value to see if you receive an offer. Call or email me if you have any more questions or to list the home 561.313.6961 Linda@LindaBassitt.com
- wetdawgs
- Contributions:26833
Doing a short sale requires working with your lender and getting them to approve that you do indeed qualify for a short sale. Qualification takes more than buyer's regret, but instead it requires a degree of hardship and inability to make mortgage payments or making mortgage payments with great difficulty.
Please read up on what it takes to be qualified for a short sale on this site and others to see if it is a possibility. Contact your lender and ask them for their loss mitigation department.
Please read up on what it takes to be qualified for a short sale on this site and others to see if it is a possibility. Contact your lender and ask them for their loss mitigation department.
I am thinking of sa short sale for my house
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