Lisa H asked:


We are thinking of looking into doing a short sale. I know we need to talk to the mortgage company about this but just wondering, how does it work with interst only loans? Our 1st mortgage is at $284,000 and a HELOC at $55,000. Zillow shows the house valued at about $339,000. We are currently making monthly payments but we are currently about a month & a half behind (on the 1st mortgage) and working with the mortgage company to get caught up but our payments are too high and will continue to be a struggle so we would like to get out of the house and possibly get into a rental & possibly buy again in a few years.
Thanks for all your input. My next question is, who do I talk to first about this? Do I tell my mortgage company we are thinking of doing this or do I talk to a realtor first?
It is the same lender for both loans. Thanks!!
You all have been very, very helpful. I feel like I’m really getting a good grasp of this stuff. My next question is, how do I go about finding a realtor who really knows about short sales? Do I just call a realtor and ask? Or is there a way I can search for them in my area? I live in Illinois.

Irwin

henkaz asked:

Was expecting to deal directly with bank and use my equity to buy rental property (no title insurance, appraisal, etc.) and refinance in near future. Instead, sale is with defaulting owner.

Booker

Alex J asked:


I put in an offer for a home up for short sale. It has been on the market around 82 days.

Anyway, the bank that would finance me is actually the bank that the owner defaulted on. Does this help me?

Elliott

gobanana516 asked:


The owners accepted my offer and signed my contract, but the contract has to be approved by the bank. It takes up to 5 days for them to approve. My questions is–what happens if other offers come in before the bank approves? Can the owner take another offer even though they already signed mine?
Our offer was for the asking price.

There’s a good chance there will be other offers, since the price is really low and there was already another offer when we made ours. The house has only been on the market for 9 days.
One more question: what exactly does the bank have to approve?

Gaylord

SCHUMI asked:


were on the process of short sale the house..we miss paying our mortgage for 2 mos now..i have a couple of existing credit cards, and ive been applying or open a new one,however i got decline most of the time..do you think this is already the result of not having paying the mortgage? is there still any bank or company that will approve me?

Kenneth

EmmasMom asked:


My husband and I are in such a jam. We had a beautiful home that we rented out to a woman who was to do a lease option. Well, she ended up dragging it out for so long, that we gave her a 30 day notice. To make a long story short, she is behind 4 months of rent, did not move out, we had to take her to court…and she trashed our home. The amount of money it would take to fix it would be about $50-75K.
My husband and I are looking into doing a short sale on it. We probably would have to take a negative hit on it, and maybe owe $50-75 on it. So, it seems like a wash to me.
a. we have a house that has been remodeled but we owe $50-75 in debt to Lowes, Home Depot, credit cards for fixing it up.
b. we do a short sale, get rid of the house, but still have some sort of loan unless the bank agrees to eat the money.

Our question is. Should we do the short sale and buy something that we will stay in for a long time, not knowing how the short sale will effect our credit?

Deedee

bluemindz asked:


Hi, I put a bid on a short sale house. The agent told me it would takes 2 weeks to process but now it’s 8th week of waiting. My agent has been trying to contact the seller’s agent and we have not heard any response from the bank. Is there any other way we can do to make this process goes faster and how long does it take a bank to approve a bid on a short sale normally ? Orlando, FL

Wyatt

NNC asked:


We just got an counter-offer on house that contained the statement below:
“This is currently not a short-sale, however, sellers need to submit the purchase agreement to the bank for review prior to final ratification”

We do know from the realtor that sellers owe more to lender than the current market value of the house.

What does statement on the offer mean? Is this a short-sale hidden as something else? Why would the bank need to review the purchase agreement if it’s not a short-sale?

Anybody has experienced this before?

Agnus

Jimmy’s Wife asked:


My friend Ellen currently owns a home in Yorba Linda, CA (backyard is the Nixon presidential library). In 2005-06, she purchased the home for about 850K (minimal down payment, interest only….). Due to difficult economic climate and unemployment, she is now considering the sale of her home. However, the neighborhood alreay has 5 foreclosures, all within the same community and of similar floor plan. They are listed at the prices of about 580K.

Ellen just listed the home with a realtor, at the price of 575K…

Would the bank even agree to such a staggering short sale?
What is in it for the bank?
Will Ellen have to make up the huge difference?
Will it affect her credit and future purchase of homes?
Will the bank lay claim to her other assets in order to recover the loss?

My husband and I are very worried for her and don’t know what we can do to help her.

Laurence

jasonex asked:


If somone is selling their house because they just don’t like it anymore but in this market it is worth less than what is owed to the bank, is that considered a short sale? I keep reading about being behind on payments and going for a short sale instead of foreclosure. This is not what i am talking about. If a house sells for less than is owed on the mortgage, but there are no financial issues, the owner just wants a bigger house or something, can’t the bank just give them a payment book for the balance owed?

Moses