Profile picture for user71726255

Stuck with a home I cant sell

I had to move out of my townhouse March 1 2013. Per the homeowner association rules, I have to wait on a waiting list to rent. I cannot sell because I am underwater. I am getting to the point where I really cant afford to pay for a home Im no longer living in. I really dont want to ruin my credit with a short sale or foreclosure. Do you have any advice?
  • August 19 2013 - Volo
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Answers (17)

If all else fails, you just have to take your lumps. Nobody WANTS to short sale or get foreclosed on so I'd say do the lesser of the two evils--with short selling being the lessor.
Your credit will probably drop 100 points with a SS give or take but you'll build it back up over time and maybe learn a financial lesson from it all.
Good luck and hope you don't have to go that route and find the alternative.
  • September 09 2013
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Profile picture for BobBrandtRealtor
Can you afford to bring the money you owe to the closing and keep your credit rating? Figure how much it is with a new CMA.
  • September 09 2013
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You have several options:
1. Have a specialist in the area do a CMA for you to see how the market has changed in the last several months, as overall, the prices are up since March.
2. Rent it to a family member
3. In case you are still underwater and qualify, sell the home through a short sale.
  • September 07 2013
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Hello,

I had a costumer with a similar situation. Back on August last year he was planing to leave the country and do a short sale after he moved out but when I asked him about all documentation required by the bank he decided not to continue with the transaction.
Six months later back on May the market completely changed and we were able to sell his house for enough money to pay his mortgage, closing cost and commissions.
I have another one called me last month. Same situation they bring a couple thousands to the closing table (we closed this Friday) but they were able to sell the house, save their credit buy another house were they are going to relocated and the best part they loved my services.
So please give me a call for a quick analysis of you current situation for give you the best options.

Thank you,    
carlos Escamilla
Realty World Executive Homes
  • August 25 2013
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Short sale it--if you qualify under HAFA (Obama's make home affordable act) you could get up to $3000 walking money--criteria below--and check with your real estate attorney:

Other HAFA requirements include:

  • Property is principal residence.
  • Mortgage originated before Jan. 1, 2009.
  • Mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.
  • Borrower is delinquent or default is foreseeable.
  • Homeowner demonstrates hardship.
  • Borrower's total monthly housing payment exceeds 31 percent of gross income.
  • Unpaid principal does not exceed $729,750.


Read more: http://www.bankrate.com/finance/real-estate/hafa-short-sale-rules-may-help-sellers-1.aspx#ixzz2cxnmdFgN 
  • August 25 2013
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Profile picture for Rick Lesquier
Find an agent who is CDPE or SFR certified and do the Short Sale. Typically the lender pays the commission and will forgive the deficiencies. Even if they do not forgive the deficiencies they will work out a payment plan for you to repay them. As far as your credit the short sale may or may not effect your credit but it is far less damaging then a foreclosure or bankruptcy.
  • August 23 2013
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Talk to an Attorney.
  • August 23 2013
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As a short sale specialist in real estate and being involved in over 100 short sales in the past 5 years the first thing I would suggest you do is contact an attorney and or  someone that is a financial adviser. These people can explain how legally and financially a possible deficiency in a short sale can affect you. Real estate agents can help you sell your home. That is their job. I myself am not a financial adviser nor an attorney and I don't pretend to be one. That is why as a realtor I always suggest to a potential short sale client to seek out the advice of an attorney and a financial advisor before they actually list their home for sale.  If you need help finding a good attorney or financial advisor I have a list of them that I trust and know have a good staff that will represent your interest not their own.  
  • August 23 2013
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" I cannot sell because I am underwater..."

You're kidding, right? Get it sold - now. Yes your credit will take a hit. How big depends on how good (or bad) it is right now. I have clients who did a short sale 2 years ago and are now purchasing again. Even one with a recent bankruptcy!

Does renting it make sense? Would it cover the mortgage, or would you need to put money in? Is it close enough for you to manage - or are you moving far away? Are you willing to pay for an empty condo until it is rentable? 

  • August 22 2013
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Some lenders can approve a short sale even if you are not behind in payments.  Check with a local real estate expert in short sales to contact your lender and see if this would be the case
  • August 20 2013
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I would think the   HOA would prefer a renter in the building rather than a foreclosure.  I would put a renter in to make the payments asap.  HOA will have to deal with it.  It will ruin your credit to short sale or foreclosure. 
  • August 19 2013
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Profile picture for user71726255
Yes, I've done an appraisal. The real estate agent told me that based on the sales of all of the other homes in my area, the most I could sell it for is $80,000. The is way under what I still owe.
  • August 19 2013
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Have you ever done an appraisal to know what your home is worth?

  • August 19 2013
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Profile picture for Dunes ..
"A short sale is not a bad idea. most of the time your credit is not even affected depending on your lender."

"most of the time your credit is not even affected depending on your lender"?



Is that a true and accurate claim to make?
Realtor.com seems to suggest otherwise..
How Short Sales Affect Your Credit Score
  • August 19 2013
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Lots of folks have been in your situation. These HOA's have created stupid rigid rules in an attempt to keep owner occupancy up which they assume will keep values up, but their rules do just the opposite. People like you end up selling short or become REO's and thereby lower the values. See if they make 'hardship' exceptions. Some HOA's do. If the % owner occupancy is over 70% then lenders do not care about how many rentals there are.  The market has changed in the past 12 months and in some aresa big time. Perhaps get a couple of agents to do a market analysis to see if you really are under water. You might also ask the lien holder to do a deed in lieu.
  • August 19 2013
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A short sale is not a bad idea. most of the time your credit is not even affected depending on your lender.
  • August 19 2013
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Profile picture for Andrew Malak
Se if your association bylaws are ok with family moving in right away. If yes, rent it out to family.
  • August 19 2013
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