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- 2 Big 2 Fail
- Contributions:0
Thank you for the advice Mr. Wannabe financial planner.
- silent_observer
- Contributions:1603
thanks Mr. pine. This is the last exit on the highway for buyers who paid too much. if they don't take this exit strategy it will be a financial collapse for families. i sincerely strongly recommend owners who paid too much to consider this option.
- 2 Big 2 Fail
- Contributions:0
"i sincerely strongly recommend owners who paid too much to consider this option."
Do you own a mirror? If so, I think you should look into it right now.
As long as these last Mohicans ( homeowners that bought in the last 4 years but can afford it ) do not walk away. If more and more people get up and walk away the values will drop more. I, as an owner of 2 depreciating stucco crapshacks sure as hell do not want to over 'over correct'. I am a realist but come on!
- 2 Big 2 Fail
- Contributions:0
60% of all Option ARMs due to reset are in California. So hold on SoCal, this ride could get scarry....
- 80smusicrox
- Contributions:420
"Call your agent and do a short sale"....
I would suggest educate yourself on the process first. Call an attorney first. Find an agent who has successful experience with short sales (most agents have no experience and no desire to even touch a short sale). If the pre-existing conditions are ripe for a short sale and you have a willing, able and patient buyer....then yes, do a short sale.
The sellers I'm buying from (if we can close this thing) will have $150,000 of debt forgiveness.
- sndral
- Contributions:84
"do a short sale" -don't you need a buyer? In the area I'm interested in, they seem to TRY to do a short sale, doesn't sell or goes pending then back on the market, goes REO, still doesn't sell, but markets do differ.
- 80smusicrox
- Contributions:420
sndral...Yep, it's not so simple as the OP stated. There's much more to it than calling up an agent. When the general buyer won't try it and the general agent won't touch it...then it sure makes the odds not work in the short sellers favor.
There are good deals to be had...and with the foreclosure crisis, short sales will eventually become more and more common...and more and more successful.
- gstracer05
- Contributions:37
Correct me if I'm wrong but I think the original poster has lost his mind. I was under the impression that in order to be approved for a "short sale" you have to show financial hardship to the point that you can no longer make your mortgage payments. This would be for the person who was on a 5 year ARM paying lets say $2500/month and now his mortgage is $4000 and his monthly salary is less than that. Or in the events of a loss of job, divorce, etc.
If you're a guy who's making $3k a month and has a mortgage of $1500 a month and even though you bought your house at the peak of the market and its worth 100k less, you cant just get up and do a short sale because you've lost value.
- 2 Big 2 Fail
- Contributions:0
If the bank won't let you do a short sale, then you can always just walk away and use jingle mail.
[content removed by moderator for being inappropriate] In house buying, stinking credit? sure you can buy a house with no downpayment. No income or small income enough? Hell, just put it down you are making 150k. No job? sure we can get you finance just write it down you're the "CEO" in make belief corporation. No money down? sure we can get you finance and oh you'll get cash back just by buying a house. No social security? Sure we can get you finance just buy one of thouse fake social security cards from the internet. Just WOW!
- 2 Big 2 Fail
- Contributions:0
In NYC, the co-op baord were always tough about who can buy. In the past, they have turned down Madonna, Elizabeth Taylor, P. Diddy, and a Russian billionaire.
In the car industry [content removed by moderator for being inappropriate] they verify your income by checking your pay stubs, your employment history by calling your employer and no recent deragatory credit. It's been like that for years. As far as mortgage lending in the last 5 or 6 years, FREE MONEY FOR ALL ANYTHING GOES. IF YOU HAVE A PULSE YOU CAN BUY A HOUSE.
Hence how you have become the 'Asian Hitler' of the slum lords. Nice try crzygay/doomersunderwear/cheapdildo man.
he may be cr8zy dude, but hell he is right on this!
I was in a bank that was robbed. the guy in front of me pulled a gun on the teller and got her drawer money, then ran. He probably got a couple thousand, if he gets caught, 20+ years in jail. Meanwhile, over at the desk, another guy was getting a heloc against an already over mortgaged home. He got 70K, and he got caught. Now he has bad credit for a few years...
why did anybody rob a bank in phoenix over the last few years? 20 minutes time, and aloan app, and you could walk out with all the money you ever wanted.
Wow azrob this is the first time you got my drift. Amazing seniorita!
- silent_observer
- Contributions:1603
alpine, bellafontineien aka doomersnightmarescheapskates, i have a mortgage and i can comfortably make my payments and it is less than renting the property. i am infact saving money by doing this.
this is a suggestion for friends who are deep underwater. one of my buddy bought a home for 640K last year and it is selling in the low 500s now. he is 140K down and still more to go. he has two kids and they need to save for their college. since my buddy bought just when the subprime crisis was starting he ended up paying very high interest for a fixed rate loan. ofcourse he has 100% financing with a 20% second. with my calculation he is paying atleast $3200 in payments after taking into account his tax-deductions. renting that same $hit costs only $1900. what a freaking waste. he stopped making 401K contributions and any savings for college and making this mortgage payment.
the stupidest thing the guy did was to let his wife do all the home shopping and he just signed the paper :-) what would you recommend for them to do? my sincere advice is to do a short-sale if not threaten the bank with a foreclosure. why is this wrong for this family. just tell me what is wrong in my advice?
they are not ultra rich. they just got caught in this mess and was tricked into buying the place by a realtor. yeah she made good money and got them sucked into this for a 3% commission by saying things like,
* prices will never go down in this area
* buy now or you'll be priced out forever again
*...... (all usual crap)
I am not out of my mind and this is my sincere advice to them.
Silent, In regards to your friend, I don't see anything wrong about doing a short sale let alone mailing the keys back to the lender. Your friends house is no longer investment it becomes a liability. [content removed by moderator for being inappropriate] In the last 5 or 6 years there are bunch of cocky ass flippers (most of them are in real estate industry) who got burned. Now they are pointing fingers to average Joe/Jane who only wants a good future for their family.
- silent_observer
- Contributions:1603
i agree with you and you know what is happening now? the reverse. flippers are the ones who are doing the short-sales and my friends' family is religiously paying the monthly payments every month day-in/day-out thinking that their home will bounce back etc., i simply cannot tell them this and i cannot write an anonymous letter to them either. i'm vetting out my feelings here in zillow :-( if there is someone who is in similar situation hopefully they can listen.
- Chad Melin, "Chad Melin"
- Contributions:113
Call your lender and ask for a rate reduction or a reduction in the principle balance. You may have to submit some data to show you are upside down in your home. There are currently real estate attorneys who can help you negotiate principle reductions for you.
I can tell you for a fact the last thing a bank will do is let a homeowner who is making his payments walk out of his house on a shortsale.
If they do that, then everyone and their dog will do so. The only thing holding people in their homes is their credit. A short sale is a ding, but nothing compared to foreclosure or deed in leui
If word ever got out that you could negotiate a short sale for 100k loss without screwing up your credit , then everyone would be demanding it.
Lenders simply wait until you are 90 days behind , then they might consider it. This way your credit is screwed .
- Datafeed
- Contributions:23
Silent, may I ask why do you think it was the stupidest thing for the guy to let his wife do all the home shopping? Do you think if he were doing the shopping himself, he would pick another property which would not depreciate in this kind of market?
- silent_observer
- Contributions:1603
tom, i have seen short-sale approvals from wamu where the payments are current. i think your assumptions are wrong. lenders are willing to listen to stories like this and are approving short-sales if investors are approving them. it just takes long time.
datafeed, the reason was she is the one who hired the agent and believed everything the agent said without questioning them with logical questions. they had every single thing infront of them to make reasonable decision with a friend few doors away to talk to but they didn't listen. it is this women who started spreading stories like my city is going to be the next marin, we have no land to build, prices in this area always goes up, google & yahoo(good luck now) employees are buying all over the bay-area. she got hyped and hyped her husband. anyway whatever happened it is over. i hope atleast they read national sites like zillow and get educated.
they need lots of guts to come here and post a question!
- bakammer
- Contributions:53
This thread is the poster child of bad advice on the internet. Since when do borrowers threaten banks with foreclosure?
- Pasadenan
- Contributions:21458
Shortsale if 100k underwater???
This may make sence if the total value is under 600k and you have almost no equity,
But it makes almost no sense at all if the total value is 30 million and you have over 25 million in equity.
You cannot make a determination if a short sale makes sense by one number alone.
- Pasadenan
- Contributions:21458
Since when do borrowers threaten banks with foreclosure?
Never; they just threaten to live there for 2 years plus "free" without paying a penny toward the mortgage, especially if they put nothing down and were paying only 1% interest up front. It is the bank's choice if they want to liquidate the asset, but with all the regulatory requirements, they have to provide multiple opportunities for the borrower to catch-up on payments first.
So, if one wants out quick, it is easier to ask for a "short sale" and threaten "no payment" due to other unexpected financial obligations if the bank is not willing to negotiate. This is not "foreclosure", it is simply a sale at market value where both the borrower and lender take a loss.
- plarusa
- Contributions:861
..I can tell you for a fact the last thing a bank will do is let a homeowner who is making his payments walk out of his house on a shortsale..
As it should be. Glad to hear it.
- silent_observer
- Contributions:1603
it is not the banks choice it is the borrowers choice. sorry the asset value decreased and please take it back.
- silent_observer
- Contributions:1603
"But it makes almost no sense at all if the total value is 30 million and you have over 25 million in equity."
--- wow i guess i don't have explain that to someone and i guess i don't have to explain to someone to stay if they have their downpayment. (get a second loan first and get all your money out and then threaten!)
this is happening now and it is a good easy exit strategy with a few ten thousands loss and i think it is ok. if someone put 100K down on a 1M mortgage and their value is down to 900K i am not suggesting them to walk away.
this walk away advice is for people with 100% financing and ARM resets, option ARM resets or high payments with fixed rates and 2nd etc., if that house is not for you please move on. let the ones who can afford it come in and settle down. we want the correction to be fast and furious. lets get over with it and move on.
- Senija Busljeta, "nj_sellout"
- Contributions:32
Guy I sold to is down over $140K...
too bad he didn't go zero down, then he could walk away...
But, he put a lot of cash in. He is taking a hit, ouch!
If you are underwater by 100K or more then call your agent and do a short sale..
If you can afford the payments and still think you are paying too much call your agent and ask whether they'll help you do a short-sale. It is the best and cleanest way to get out of the market now. If the lender is not willing to listen then threaten them with a foreclosure. Even though I am a new home owner I know many friends who are stuck in this situation by buying in the last few years and I think it is the best thing they can do now. It is good for everyone
* banks can avoid foreclosure
* owners can avoid credit issues
* govt. doesn't have to do a bailout
* fewer banks will go under
* economy will muddle through the recession instead of a depression
Good luck
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