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Anyone been through a Short Sale?
Dr. Frenchenstein
Registered User regular
Registered User regular
Has anyone been through a short sale of a more strategic nature? usually these require a hardship of some sort, which i don't think i've technically been through. some would consider owning this house at all a hardship, but i don't think the bank would. anyway, i'm not sure what i want to do next. i want out of this place but since i don't have $25-40k lying around my options are basically short sale, foreclosure, or keep it and live in it/rent it. i'd prefer the short sale, because i want to be done with it. has anyone done this? did it totally ruin your credit? I'm getting married in the next year, should i make the decision before that happens?
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If the home is worth less than your mortgage, you would qualify for the hardship.
If not, well, then you sell it as a normal house then?
I thought i read that just being underwater does not qualify you for a hardship... i could be wrong.
Not sure the total value of your house, but home values can be subjective. How confident are you in the assessed value of your home? Have you had an appraiser come in recently? Zillow can be right but it can also be wrong. It was definitely wrong for my house when I bought it.
we also talk about other random shit and clown upon each other
I used to work tangebly with SS. Not an expert by any means but I can tell you that the process is loooooooong.
This is mainly because there's going to be tons of back and forth between you/realtor and the bank about how much the home should actually be sold at.
Yeah you keep paying as normal.
But generally the underwater part of the short sale means you can't afford it, and you're not going to be able to keep affording it.
You might be better off with a foreclosure. Is your loan no-recourse?
You'll take a hit to your credit, of course.
Find a lawyer with a history of actually seeing these through to the end (get references - a lot of them). Ask that person instead of us.
The problem with short sales is that everyone except for you has an incentive to drag out the process for as long as possible while doing the minimal amount of work required to keep it going. Including your own lawyer. So you really need to find legitimate, honest representation with a proven track record. Otherwise, you'll find plenty of lawyers who are happy to muddle through the process and then throw their hands up a year later with nothing to show except billable hours and an apology.
but they're listening to every word I say
In the end it took over a year more before the house finally sold to another party that got the house for less then our asking price!
It's simpler (for everyone) to try for a normal sale and see if it can sell, first. In most cases that's a required first step for a short sale process. In my experience some of the selling costs can be pushed onto the buyer (depending on a lot of things, but it certainly happens).
Have you talked with anyone local in the real estate business? A lot of the details are going to depend on both where the house is and who the mortgage holder is.
not unless your bank is awesome
for example, my house is valued at one half of what I owe on it, and one third of what the purchase price was. I tried to get a hardship refinance through PNC because at the time I was paying for a lawyer (divorce), child care (son was not yet old enough for school), and a car payment (ex wife didn't take it over). Add to the fact that I haven't worked a full 40 hour week since 2009 and I'm broke.
PNC laughed in my face and told me to go fuck myself.
I can provide more info on the foreclosure process if you're interested, I did it without a lawyer but did a shitload of research on my own, which may or may not have been a good idea.
Are you capable of continuing to pay the mortgage even if its hard to do?
Short sales do take a long time, even when you get an offer in it might take the bank 1-3 months before it hands down a final approval.
Also you mentioned that you are getting married, can you afford to take a credit hit right now?
I am not saying I recommend this method as you didn't elaborate on your situation...but if it is bad enough you can surrender a house this way and walk away owing nothing on it, just be prepared for the fall out.
Jesus Christ.
The bank is always the problem on a short sale. They have to approve the selling of the home - because they'll take the hit if it sells less than what it's financed for. You can't dump the risk on them and expect to walk away clean.
First, even if you do a short sale, the bank as the lender has every right to see if you can make up the difference to them in value lost. Nothing is off the table - 401k's, savings, etc., - everything that's an asset. Second, assuming the bank doesn't go after assets (because you don't have any), and they agree to the sale, your credit takes a hit. It's a big hit. It's essentially a quasi-foreclosure, because you as the customer are not paying the agreed to amount to the bank. I guess to those guys they don't really view'em much different, and were I in there shoes, I guess I could see it that way.
The real question(s) is this: Do you want out because you don't like the place anymore? Or do you want out because you can't afford it anymore? If you can afford it, keep it. Rent it out. The credit hit can be brutal on your interest rates going forward, and could cost you dearly. It's fixable, but keep in mind, it stays on your credit report for 7 years. Walking out on the loan because 'you don't want it anymore', isn't..well. I'd say say it's fairly irresponsible, but it's your life and credit my man - do what you will.