Post # 1
I am currently putting up my premarital property (a condo) up for a short sale. It has been a rental for the past 4 years. I can no longer afford the bills that come along with it. I bought it at the height of the market so I have to list it for significantly less than I purchased it for. Anyone have any advice for me? It’s going through Wells Fargo. Thank you!
Post # 2
Adeline4: I am not sure if this will be helpful but as a buyer (we are trying to buy in market like what you described), please be realistic what your property is actually worth. price based on what has actually sold, not necessarily what people are listing things as. (Many people here are listing 50k or more over what it will be appraises at, they think its okay since their neighbors do it). It will help sell faster and ensure a good appraisal. (And more importantly that the sale goes through and doesn’t get canceled on a bad appraisal).
Post # 3
Be patient – because the bank has to approve everything, it can be a lengthy process.
Post # 4
marriedbeeexpecting: short sales are not the same as a regular listing. The property often goes for thousands below its worth.
Post # 5
I am currently trying go buy a short sale, and one of my good friends recently sold his house on an approved short sale in a different state. It is a LONG process and you must remain current on your bills while going through the process or the bank may foreclose (which they can do anyway if you’re not paying your mortgage or taxes).
so basically you’ll need to first get preliminary approval for selling short, which is based on a number of factors including how much you owe, what other assets you have, and if you qualify for HARP/HAMP or anything like that. If you qualify for HARP/HAMP in some circumstances you may need to complete those processes and restructure your loan, which may keep you on the hook for the mortgage. If you’re approved for short sale, then you get a realtor and put it on the market at an attractive price (Possibly suggested by the bank). Some banks require a cash only sale, no contingencies, or other restrictions. When a buyer shows up, their offer goes to the bank who will either approve the sale at that price or reject it; while banks are not usually inclined to hold onto real estate (they’re banks and not realtors, after all), they also don’t like to lose money, so it’s not as simple as the buyer just naming a price. You may end up supplementing the offer with your own cash (because it’s better to cough up $10k than stay on the hook for $100k) in some circumstances. Once an offer is accepted, it goes through like a regular sale.
advice: get a realtor who specializes in short sales in your area. It is a very tedious process.
Post # 6
Make sure that the bank cannot come back to you for the difference between the sale price and what you will get for it. I don’t remember the technical term though.
Post # 7
smoocheepoo: houses always sell for what they are worth – that’s how markets work. a short-sale is when it sells for less than the current owner has mortgaged. I’ve seen plenty of houses for sale that were asking waaaaay too much but that was the price the seller needed to be able to pay off their loan. I think that’s what marriedbeeexpecting: was talking about.
Post # 8
Adeline4: I put a townhouse up for short sale when my (ex) husband lost his job and we had to move to another state for a job. And even at that, I don’t know much except make sure to get a real estate agent that is really good at short sales!!! We used some random one and she did NOTHING to help us. And then when we moved out of state she stole my refrigerator! We had to eventually foreclose. Not that you would have to do that, but seriously, make sure you get an agent who does a lot of short sales.
Post # 9
LilliV: Yes, that is what I was referring to but I was confused/mistaken about the short sale thing. A lot of people here bought right before the ’08 crash and set to loose 100k+. As a result, they are listing much higher than what its worth because they are underwater. It does not help that everyone is doing it, so sellers often have unrealistic expectations.
Post # 10
marriedbeeexpecting: yea we saw a lot of those when we were house hunting 3 years ago. We would take one look at the listing and not even bother because it was so obviously overpriced for the current market. I have sympathy for people that are underwater, but not enough to overspend!