Profile picture for rlawhon123

What is the best solution for a home worth less than mortgage, sell, short sale, or what?

  • July 21 2011 - Fremont
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Answers (15)

In my experience the 1st thing I would do is call the lender and ask about a loan modification or re-finance.....best of luck
  • April 15 2012
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Dear Rlawhon,

The best solution is to re-finance if possible and hold on to your home until the market corrects itself. If you don't have to sell right now,there's no reason to sell when the market is down.
  • March 20 2012
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Good point So Cal-
A   C.D.P.E. (Certified Distressed Property Expert- as I recommended be searched for in earlier email) knows that federal job applications may ask if you have ever had a foreclosure.  This can greatly impact (say prohibit) you from being hired.   

Another consideration:
It is a concern of mine how many folks are given advice to just "walk away" because they may be upside down (owe more than present market value).  Too often what they are walking TO (rental) is not fully considered.  The rental may cost as much if not more than what they are paying to own and can be much less pleasant a living situation.  Rentals are presently strong/'pricey' as demand increasing.  ALL options should be considered.  Tenants, roommates? Time to think outside of the box.   Good luck.
  • August 14 2011
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Profile picture for SoCal Engr
While you're at it, also consider what - if any - impact this may have on your job situation. Some jobs look at financial responsibility/hardship as indicators for employability. I'm not saying your job(s) do, and even those that do are taking the current economy/market into account, but there can be ramifications beyond "just the sale".
  • August 14 2011
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Below link will get you to C.D.P.E. site (Certified distressed property experts)
http://www.cdpe.com/find/cdpe

They are trained in helping folks determine best route for dealing with distressed properties.  Don't be shy.  Ask questions.  There are MANY in your situation. 
Best to you as you chart your path.
  • August 14 2011
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First you should contact an expereinced real estate agent in your area that has short sale experience. See if you can find an agent with "SFR" (short sale forclosure resource) deisgnation as they should be able to help you with your options. Be prepared to give your agent a lot of personal information ... tax rturns, bank statements, payroll information, and authorization to speak to your mortgage company. You must be truthful with your agent as to your financial situation or the agent will be unable to help you.

After speaking with a qualified agent you should speak with a local real estate attorney. The attorney will be able to explain the laws in your state and how they will effect you. Should you decide to move forward with the short sale, the attorney will be able to provide the HUD1 (closing statement) to the bank. Then you need to speak with a tax advisor to determine what a short sale will mean to you regarding your tax return.
  • August 13 2011
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The very first thing that you want to do is check with your bank. Many homeowners are short selling their homes and are under the impression that they are completely done and can move on. There are so many factors to consider. Some banks will forgive the difference of loss while others will place the loss on your credit report as a judgment. Many homeowners are also not aware that depending on how the short sale appears on your credit report, you may have to wait at least two years before purchasing another home. Researching this information and weighing your options will help you avoid pitfalls later.
  • August 10 2011
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Profile picture for Sharon Lewis
Do you need to sell or can you rent?
Have you tried refinancing?
  • August 06 2011
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I have heard that some of the banks are not requiring a "hardship" scenario anymore to short sell.....you might check with your mortgage holder and see. 
  • August 01 2011
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Hi! First I would check to see if your "hardship" can be a short sale. Check out my site at [edited by Zillow moderator] under short sale info and you can check on that.  
2. If you have security clearances you may not to do a short sale. 
3. If everything in your life is the same as it was when you bought, short sales do not work. Just being short, doesn't quailify you. 

What isa your mind set about our economy? What state do you live in? If your a little bit upside down and you think that the economy is going to come back soon, stay. If your upside down and you think the market is going to keep falling,sale. Not knowing all of the facts, it's hard to say!! 
  REMEMBER, all Realtors want you to either buy or sale. That's their income!!   ASK your accountant or lawyer!!
 
  • July 30 2011
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Are you underwater on your home mortgage? Don't walk away! [Promotional hotlink and post removed by Zillow moderator. Please see our Good Neighbor Policy for more information.]
  • July 29 2011
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Depends on many factors that are particular to the situation.  Needs to be dealt with face to face with a professional who has years of experience with short sales in the local markets. 
  • July 21 2011
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Profile picture for sunnyview
It depends how far underwater you are. I would suggest asking 2-3 local agents for a current CMA to see where you really stand. If you have mortgage that is close your value, then it is probably not worth walking away, short selling or letting it go back to the bank. If you have a significant gap or a hardship, one of those options might help you move forward.

Get the current value information for your house, get all the facts that you can and then seek legal/tax advice before you decide what option is best.
  • July 21 2011
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Profile picture for rlawhon123
I am the seller....no I havent
  • July 21 2011
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It depends on the sellers situation since each scenario is different?  Did you speak to an attorney and/or tax accountant?
  • July 21 2011
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