Mr. Garcia, HELP - Posted by Kellie Lindsey

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Posted by Ed Garcia on December 03, 2000 at 22:36:39:

Kellie,

I can tell you what a Short Sale is. A short sale is when the lender agrees to rewrite your loan for a lesser amount, than what you currently owe on the property. Lenders have done this when the market has changed and the lender knows that the property is not worth what is owed against it.

My concern Kellie is that you now have the house on the market for $212,900, with no bites, and you owe $194,000. A 6% commission $212,900 is $12,744. If you don’t negotiate another dime, you would on a good day Net $200,156 not counting sellers closing cost. I’m also concerned, how long could you continue to handle the payments.

Kellie, if you wish to keep the house because it’s HOME to the 4 kids I understand. You might approach the mortgage company, and tell them what you can afford in monthly payments. I doubt that they will work with you, but you have nothing to lose in trying. Kellie, since you no longer have equity in this house, there is no reason to continue the fight. If the lender won’t work with you then you’ll have to, do what you have to do.

Kellie, I’ll tell you what, call me at (909) 944-0199 and we can talk. If you feel you can handle the payments, I’ll work your lender for you. There are a few questions I’d like to know about this deal anyway, that will tell me if the lender will work with you on a rewrite. Because this is a refi, and you’ve already pulled cash out, I’m concerned about a deficiency balance as well. Just call me.

Ed Garcia

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Mr. Garcia, HELP - Posted by Kellie Lindsey

Posted by Kellie Lindsey on December 03, 2000 at 19:53:41:

Mr. Garcia,
I was referred to you by a real estate investor in Vancouver, Washington. He thought you might be able to help me or at least give me some advise. Here is my story (and it’s a long one!). In 1987 my (then) husband and I built a house. He was a builder and we were able to do most of the work ourselves and put alot of “extra’s” into the home. We only borrowed $65,000 to finance it. We divorced two years later in 1991 I married husband #2 (stupid me). Over the next 9 years we refinanced the house several times to finance his wacky projects (stupid me, again). He opened a mountain bike retail shop in 1995 and closed in 2 years later, owing creditors about $75,000. We refinaced the house for the last time. It appraised at $232,000, which was probably high, and borrowed $194,000, and paid off most of the shop bills. Because our credit was “tarnished”, the refinance with a “rip off” mortgage at a flat 9% for the first two years and then adjustable. After about a year, my husband left me, with 4 kids and a house payment of $1600 a month. Oh yeah, and pays me NO child support. Anyway…I was able to make it OK until last June when the adjustable thing kicked in and put the payment up to $2100. I payed it for a couple of months and finally had to make a decision. I put the house on the market for $212,900. Then I had to decide: do I chink away at my savings every month to make the payment, end up with no money be in the exact same position, or do I just stop making the payment and hope it sells soon. I decided to stop making the payment. Now it’s December, I have not made a payment since July. I was in contact with the bank until November when they sold my loan to a new bank, whom I have not even heard from yet. I have not had any reasonable offers on the house. My listing with the realtor ran out in October and I have had an ad in the local newspaper, trying to sell it myself, since then. Lots of calls from investors but no one that wants to make an offer. I have heard terms like, short sale and buy back but to be honest, I am not really up to speed on any of that stuff. I need advise. I don’t have any other debt. I’m just in a really messed up situation. Can you help???