Feb
12
American_Nawaab_786 asked:
At the height of the real estate market, I purchased a house in Northern VA for $650k (mortgaged $600k). The house is 15 years old and needs about $75k worth of work. I am currently in a financial bind (job layoff). I have not paid my mortgage in 2 months. The house is worth 60%+/- of what I bought it for based upon comps in the neighborhood. The house has been on the market for 6 months and has had ZERO interest. The mortgage companies have allowed me to sell my house in a Short Sale. The question is, will banks take $350k for a $600k note in a Short Sale? That is a huge reduction!
The $600k mortgage is from two different lenders. $400k is the main mortgage, $200k is a home equity loan.
Donn
At the height of the real estate market, I purchased a house in Northern VA for $650k (mortgaged $600k). The house is 15 years old and needs about $75k worth of work. I am currently in a financial bind (job layoff). I have not paid my mortgage in 2 months. The house is worth 60%+/- of what I bought it for based upon comps in the neighborhood. The house has been on the market for 6 months and has had ZERO interest. The mortgage companies have allowed me to sell my house in a Short Sale. The question is, will banks take $350k for a $600k note in a Short Sale? That is a huge reduction!
The $600k mortgage is from two different lenders. $400k is the main mortgage, $200k is a home equity loan.
Donn
Comments
2 Responses to “How much money are banks willing to forego in a SHORT SALE?”
You really, really need to talk to a Real Estate Attorney. As a Realtor, I have never seen 2 separate mortgage companies agree to take such a huge kick in the shorts – if you had a single lender, that may happen depending on appraisal of the property.
Hopefully, you will get a new job and NOT get forclosed. Good luck.
The banks can take a 50% reduction in a short sale if you have a buyer that will close in a timely matter. You did not say if your heloc loan was financed by the same lender. If not you will have to have an agreement on your heloc loan first before your 1st lender holders would agree. Word to the wise, are you aware that what ever the short sale is you would be given a 1099 at the end of the year for the balance. Example you short sell your house for 375k, can you imagine paying the taxes for the remaining 375k.