Posted by eric on May 29, 2009 at 13:18:54:
thanks for the info tom
i was also thinking in buying the house my self and
paying all the fees then sell it for about 90k as is? what do you guys think?
short sales - Posted by eric
Posted by eric on May 20, 2009 at 16:34:09:
well iv been looking for ways to get into real estate. I have been doing lots of research here and other web site that i have seen on here. But i am not sure which rout to go either find notes and refer them to investors or try to flip houses. Anyways im just very interested in real estate. Right now my father owes 22k on his house an is about to get foreclosured
and my brother wants to buy is house. Is this a potential short sale?
Re: short sales - Posted by River City
Posted by River City on May 22, 2009 at 15:08:28:
The lender might not agree to a short sale from your father to your brother. This could possibly not be considered by the lender as an “arms length” transaction. The lender might assume that your father has defaulted in order to force a short sale to his son. Good luck.
Re: short sales - Posted by Dean Williams
Posted by Dean Williams on May 20, 2009 at 21:06:11:
If you are worried about your lender getting a deficiency judgment, then the best thing to do is contact an attorney to discuss asset protection strategy with the help of Land Trusts, Personal Property Trusts, etc. This will at least help you make it tough for your creditor to relieve you of your property, making them think twice about filing for a deficiency judgment.
the best thing to do is talk to your lender about a short sale rather than going in for a foreclosure. If he agrees, you can prevent a deficiency judgment .
Another advantage with a short sale is that it can improve your credit, as it will feature as a â??settled debtâ??. Of course, it all depends on what your lender agrees to, so talk to him about it to establish how it will figure on your credit report and preferably get it in writing.
A short sale means the loss of your home. You can refer to online resources like StopForeclosureBlog.net for solutions to help you keep your home as well as for valuable resources like articles, videos and guides that will help you prevent foreclosure.
Re: short sales - Posted by eric
Posted by eric on May 20, 2009 at 23:24:37:
thank you very much this helps a lot.
so my plan is to call the lender and ask about a short sale then doing a foreclosure like you said and if agrees to the short sale then what? but if they dont agree ill tell my father to talk to an attorney.
Re: short sales - Posted by Tom
Posted by Tom on May 22, 2009 at 23:35:51:
The main question is…how much is your father’s house worth? if his house is worth $40,000 and he only owes $22,000 on it, there is no way the bank will approve a short sale. contrary to popular opinion, short sales are not an automatic thing. they are bantered about as the latest buzz word in the current real estate market without a true understanding of the concept. a typical short sale candidate would be a house where the property value has declined and the bank is now owed more than the property is worth. it really would be a headache for the bank to foreclose and end up with the property, which may continue to decline in value, so the bank decides to cut their losses and accept less than they are owed. if there is any kind of equity in the property, the bank will not approve a short sale, why should they?
Re: short sales - Posted by eric
Posted by eric on May 26, 2009 at 12:23:45:
the house is worth about 120-140k. the house did not go up in value at all if anything it went down a lot. what would i say to the lender? what questions do i ask?
Re: short sales - Posted by Tom
Posted by Tom on May 26, 2009 at 13:37:28:
a short sale is when a bank will sell a house for less than is owed due to a number of reasons. if your father owes $22k and the house is worth $120k, the bank will not take less than is owed. they have no reason to. the bank will most assuredly get more than the $22k they are owed at the foreclosure sale. if your brother wants to buy the house from your father, you don’t have to tell the lender anything. the only thing that has to happen is that the back payments and fees need to be paid off in addition to the $22k that is owed if a sale is to take place. your father can sell it to your brother or anyone else. if he can find someone who will make a $25k down payment, he can use the down payment to pay off the fees and the note to the bank and then carry the financing himself. with the amount of equity he has, there is no reason for him to lose the house to the bank. worst case scenario, he could sell the house for $80-90k and net about 60-70k
Re: short sales - Posted by eric
Posted by eric on May 29, 2009 at 04:16:54:
so what your trying to say is that there is not a short sale here? or its going to be hard for me because i dont exactly know what im doing? i was just trying to see if i can make some money helping my father out. but if i cant make money through this i still dont want him to get foreclosed
Re: short sales - Posted by Tom
Posted by Tom on May 29, 2009 at 13:00:13:
Correct. This is not a short sale candidate. I suggest you seek competent legal advice for your father’s options in his particular situation. A word of advice…be wary of the huckster on the TV or the biggest ad in the newspaper. There are a lot of people who will promise you everything you want to hear and when it’s over, you’re left holding the bag. Search out someone reputable who will be able to help your father with his situation. Try to find someone who has been helping people in the foreclosure area for the last 10 years, not some fly by night outfit who has been in business for 6 months. And above all, read the fine print.
Re: short sales - Posted by Tom
Posted by Tom on May 29, 2009 at 12:48:55:
Correct. This is not a short sale candidate. I suggest you seek competent legal advice for your father’s options in his particular situation. A word of advice…be wary of the huckster on the TV or the biggest ad in the newspaper. There are a lot of people who will promise you everything you want to hear and when it’s over, you’re left holding the bag. Search out someone reputable who will be able to help your father with his situation. Try to find someone who has been helping people in the foreclosure area for the last 10 years, not some fly by night outfit who has been in business for 6 months.