Profile picture for joyfuljanet

What if we can't afford the high relator fees bec no equity in home-but have to sell? No $$ to close

In home 14 yrs...husbands job cut to 1/2 time; can't afford mortgage...borrowed against for college for kids....no extra money to take to closing - what do we do? Can't afford relator because of low equity in home. Pls advise
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 04 2010 - Bloomington
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (13)

Profile picture for user6069019
[Promotion and phone deleted by Zillow moderator. See our Good Neighbor Policy.]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 13
If there is no equity on the house and you need to sell.  I will  recommend two things:  1) First apply for a short-sale with you lender and 2) Apply for a HAFA program.   The first option will allow (if you are able to qualify) to sale your house at actual market value at the same time they will pay all costs involve on a transaction.   The second option will allow to stay at your house and the lender will give youu an incentive up to $3,000 if you occupy your house until the day of closing (not all lenders offer HAFA).  Requirements for both programs are exaclty the same.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2010
If the high agent fee is the barrier, consider a flat fee MLS listing brokerage who can list your property for around $399.  A Flat Fee Listing in the Realtors Multiple Listing Service is an excellent option to get you the exposure you need to sell, even if a challenging market.

Always call and insist on talking to the actual Broker who will list your property, so you know who will be assisting you.  My website has links to reputable flat fee Brokers in all but 3 states.

Good luck in your home sale.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2010
Along with the other options listed below there is one more option available to you. It may not be the best but Keys in Lieu of Deed (or cash for keys) is where you give up and just walk away from the house by giving it to the bank.

Good luck to whatever you do.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2010
First, you should get a a comparative market analysis from a few local real estate brokers that do high volume sales. They will give you the most accurate analysis and have no need to coerce you  into listing with them (because they have a ton of business already) by giving you an unrealistically high number (and then begging for price reductions later).

Depending on how upside down you are you may have the following options:

1. Sell the house with a reduced fee real estate broker. Using a a good real estate agent will get you home sold faster and for more money if you follow their advice. Unfortunately, finding a good Realtor is a problem. FYI, the 6% listing commission is going the way of the dodo bird.

2. Sell your home via a contract for deed. If you can carry the financing you may command a higher price for your home. Of course, there are potential drawbacks to doing this.

3. Sell your home yourself and hire an attorney to help negotiate the sale and draw up the contracts.

4. Rent your home and allow the renter to make your payments for the next thirty years or so. This will make you a landlord with all of the accompanying responsibilities. Hopefully you could rent your property for enough money to cover all of the expenses associated with owning the home (mortgage, maintenance, repairs, taxes, insurance, etc.).

5. Apply for a loan modification if feasible. Of course, 80% of folks who do a loan modification end up in default again within a year, so be realistic about your budget if you go this route.

6. Short Sale.  If there is no other way to keep the home and you want to preserve your credit and ability to obtain a mortgage as much as possible, go with a short sale. Make sure you work with a highly experienced short sale agent. Short sales are difficult to successfully negotiate and close.

7. Foreclosure. Stay in the home and allow the bank to foreclose. You will get a least one year in the home without making any payments. Be sure to pay your association dues and homeowners insurance if you go this route.

Good luck in your endeavors!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2010
You say you can't afford the high realtor fees; but truth be told, you can't afford not to hire a realtor.

If you don't have equity, you will pay nothing to sell the house.  You can sell your home through what is known as a "shortsale."  You will need a professional to negotiate with your lender.

Seek the advice of an attorney and a good realtor, but don't try to sell your house as a "for sale by owner."  Or you might find yourself on the street and a foreclosure on your credit report.

Sometimes, selling your home will reduce your stress from wondering where your next house payment will come from.

Best of everything.

Mary Robinson, Realtor, San Diego area
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2010
Profile picture for hpvanc
Here is an interesting study conducted in Madison, WI, that does not support the NAR talking points, that Realtors/agents command enough higher price for a home to justify their commission.   Since you are just one state away, I think the differences for your area versus Madison would be small (if there are any significant differences nationally).  It is merely a matter of time and convenience.  Since your husband apparently has extra time on his hands, it is likely that you can handle this yourself.

Do the honorable thing, and maintain your credit rating if possible and don't do a short sale if it is possible to avoid.  I wish you the best of luck either way.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 05 2010
I would talk with an attorney who is familiar with loan modifications/short sales/foreclosures (real estate attorney) and discuss your situation. Agents immediately think "short sale" but that may not be the best situation for you. Get sound legal advice before moving forward - it may save you a lot of heartache in the long run.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 05 2010
Your option is to do SHORT sale.  The bank will pay the closing cost expenses.

You can try to sell the house by yourself but you still have to pay the closing cost if you do so...

Short answer to your question is a SHORT sale.

Good luck,

Sedat Celik, Realtor

[contact info removed by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 05 2010
JoyfulJanet,

With the current economic cycle, there are many homeowners in the same position as you and your family.  While this is a frustrating time there are some options available to you.  Is the job cut temporary?  Would restructuring the debt make the home more affordable for you? There are several options potentially available to you that are dependant upon future affordability and loan type.  There are many stories in the media about loan modifications; about 25% of the individuals requesting consideration for a loan modification truely qualify with a documented hardship and a monthly shortfall of income. 

In addition, if you can not afford to stay in the home and have a hardship you may qualify for a variety of short sale programs which are dependant upon the type of loan and in some instances the lender.  I would recommend talking with a realtor who is educated in dealing with these type of issues about what options may be available to you.  The designation I hold is CDPE (Certified Distressed Property Expert), another designations is the Short Sale and Foreclosure Resource. 

Good Luck and I wish you the best,

Patti Hessling, CDPE
ReMax Results
[contact info removed by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 05 2010
Sounds like you may be a candidate for a short sale. The short sale process is there for a reason. It provides an avenue for homeowners to sell their home and avoid foreclosure. Contact an agent who has experience in this area. Try to find an agent with a cdpe designation.
(Certified Distressed Property Expert). If you would like for me to refer you to an agent who is qualified to help you, please feel free to contact me. 

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 05 2010
Janet,

There are a few options you can consider.  Karla pointed out a couple of them but the whole list might include:

- Loan Modification - Work with bank to adjust mortgage.  This often doesn't work and wil be a problem if you can't affort payments
- Short Sale - This is where the bank will agree to take less than you owe in order to not have the house go back to them through foreclosure
- Foreclosure - Some people do make the decision to live in their homes as long as possible while not paying for it.  This has a heavy impact on your credit but it is an option
- For Sale by Owner - Your message says you can't afford a Realtor.  If commissions are the only thing you can't afford this could help.  Almost every study out there says this nets you less money but I'm sure there are exceptions.

My recommendation would be to bring in a Realtor to do a complete market analysis on your home to know where you stand from a price expectation and then explain all of these options in detail.  This process is free so it will just help you in making a final decision.  You sound like a good candidate for a short sale but you want to hear all of the choices you have and what the impacts are.

If I can be of any further asssistance please contact me as I work in Bloomington frequently.

Bill Wallace, RE/MAX Results
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 05 2010

Sorry to hear about your unfortunate situation. You have a couple of options. The first would be to contact your mortgage company and see if you can qualify for a loan modification, so you can stay in your home. The second option would be to list the home as a short sale. Since you owe more than what the property is currently valued at, your mortgage company will be required to approve the sale of the home, they will also have to approve the agent's commissions, etc. If you do choose the short sale option, you may want to seek the advice of a real estate attorney, so you are educated on the process and how it will affect your credit. Best wishes to you.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 04 2010
 
Related Questions
What if we can't afford the high relator fees bec no equity in home-but have to sell? No $$ to close
Profile picture for user6069019
Latest answer by user6069019
June 13 | 13 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 10219 Humboldt Ave S, Bloomington, MN Home For Sale
    10219 Humboldt Ave S, Bloomington, MN 55431

     For Sale: $300,000

    • Beds: 3
    • Sqft: 3017
    • Baths: 4.0
    • Lot: 13503
  2. 11151 Harrison Ave S, Bloomington, MN Home For Sale
    11151 Harrison Ave S, Bloomington, MN 55437

     For Sale: $285,000

    • Beds: 4
    • Sqft: 2644
    • Baths: 2.0
    • Lot: 17424
  3. 8720 Russell Ave S, Bloomington, MN Home For Sale
    8720 Russell Ave S, Bloomington, MN 55431

     For Sale: $259,900

    • Beds: 3
    • Sqft: 2171
    • Baths: 3.0
    • Lot: 13068