The Current FReepathon Pays For The Current Quarters Expenses?
Bobby Reich is involved?
“Some other negative situation” covers just about everything.
I think, if it’s not your home, you’d want to short sale that too.
The house is majorly messed up somehow
Being underwater on your mortgage is NOT a reason to short sale unless you absolutely have to leave thev area for some reason. Everyone keeps complaining about being underwater on their homes, but it’s no reason to panic. Just live there, pay your mortgage and carry on. Don’t try to sell and your fine.
A friend of mine was just relocated from Phoenix to Chicago and their neighborhood had a major crash due to neighboring foreclosures so they were in a major short-sale situation.
“some other negative financial situation”
That one won’t hunt.
Underwater and foreclosure are about the only 2 things that will induce a lender to accept a short sale. Usually you have to have had the property up for sale for at least 3 mos before they will consider it.
No. If you can afford the payments, don’t do it.
I have read that some lenders are issuing 1099s (I think that’s the one)for the difference as income.
If I can get this correct. Say you bought your house for $200K had a loan of $175K but found yourself underwater now, and could only get $150K. the bank agrees to the short sale (they want to avoid foreclosure). When the deal is complete they give you a 1099 for $25K. (The 150 + 25 = loan amount.)
Also have read that not all banks are doing that form.
I bought a condo in a short sale . It took exactly one year from start to finish. If I had known, I probably would not have done it. I
The Current FReepathon Pays For The Current Quarters Expenses?
You need to move, and you cannot afford rent where you are going AND house payments and do not want to try long distance land lording.
Someone died and you need to clear the estate up as soon as possible.
We ask our clients, can you make the payment? We’re upside down on our beach-view condo, but we can make our payments and want to stay here the rest of our ives.
The feds and others have generated a lot of potential loan relief programs, like it or not.
As brokers, we always welcome listings, but the first question is can you stay there and make your payment? Second question, have you contacted your lender for a renovation?
There are papers on the net comparing short sales, with deed in lieu of, and foreclosures. Read those and call your customer service before you put your house up for sale.
The VA will let you get another loan after two years. Read about FHA and conventional loans and building credit.
No, your credit will take a big hit. If you can’t pay your mortgage, it is better than foreclosure, but if you can pay, you’d be a fool to short sell. There is no other reason to do it aside from financial problems.
Too much debt. Loss of job or income. Home needing major repairs that homeowner cannot afford.
Those are the main reasons.
I binged this link and it is somewhat interesting...
http://www.jdanielrealty.com/orange-county-real-estate-news/8-great-reasons-why-you-should-short-sale-your-home/
I think I have heard of this happening in estate cases where the surviving relatives want their $$ now.
Divorce, maybe?
Yes,
Just had a client that REQUIRED more space, their house they lived in could not be added on to, they have twin daughters, and now are expecting twins again. They only have 2 bedrooms in their starter home. The both have good jobs, but with the drastic hits all homes have taken in value they are upside down.
They are buying another larger home (4 bedrooms) and are adding the difference to their new loan. Technically it is a short sale because the bank has to approve the amount of the sale since it will be below the amount owed, but there will be no shortage of funds at the closing table.