Can A Home Owner?

Can a home owner get out of a short sale?

Comments(9)

  • TheShortSalePro15th December, 2005

    Can a homeowner get out of any type of contract to sell his or her home? Sure. A lot depends on the language in the Contract. Whether the contract is enforceable is another matter. A court would have to decide that.

  • mortgagewizard15th December, 2005

    The term short sale implies 2 things: 1 that the homeowner has agreed to sell their proeprty to an third party, and also that the homeowner is or has negotiatied a less than full payoff to the lender holding the mortgage on the property.

    therefore, can he get out of the short sale?
    I would say absolutely. ..especially if the agreement to sell includes language indicating contingency on a reduced payoff.

  • jason57718th October, 2005

    I am curious as well.

    I think the OP wanted to know, all other factors being the same, if the banks are more likely to accept a SS on a government backed loan such as FHA or VA versus a conventional loan.

    Since the loans are insured by the government, does the lender take less of a loss from a government backed loan? e.g. Will the government reimburse the lender for its loss taken during a SS?

  • bgrossnickle18th October, 2005

    Investors that participate in the FHA Preforeclosure Sale Program have guidelines set by HUD. I find that since the guidelines are set by HUD and not the investor, the investor just goes through the motions. I prefer FHA loans. They are much more predictable and you get 90 days to sell the property.

    Brenda

  • benebuck16th December, 2005

    Brenda: FHA guidelines give you 90 days to sell the property? Does the lender automatically know this?


    Quote:
    On 2005-10-18 16:33, bgrossnickle wrote:
    Investors that participate in the FHA Preforeclosure Sale Program have guidelines set by HUD. I find that since the guidelines are set by HUD and not the investor, the investor just goes through the motions. I prefer FHA loans. They are much more predictable and you get 90 days to sell the property.

    Brenda

  • mortgagewizard16th December, 2005

    I have no short sale experience, but I am in mortgage lender in the Chicago, Illinois area. I believe the answer to your question is in your own words.

    I would speculate that perhaps since the government backed loans are insured that the lenders are not as concerned about the "short" loss....since they can recover the amount or most of it from the inurance fund. On the other hand, the non-insured lenders are less willing to give you a "short" because they would be taking the blunt of any loss that enuses.
    [ Edited by mortgagewizard on Date 12/16/2005 ]

  • geneyau21st December, 2005

    Thanks for the reply.

    While there are good attorneys out there, there are also attorneys within the field who are also known as "deal killers". They will always find a way to kill a deal when they see something minor.

    Just wanted some feedback from TCI people.

    Thanks!!

  • TheShortSalePro21st December, 2005

    There is nothing illegal about selling back to a former owner... unless there is specific language in the previous short sale that precludes the (then) owner from benefiting in anyway. But, that a matter for an auditor to disclover, and a grand jury to indict.

    This particular untoward scenario seems riddled with inconsistencies.

    I would steer clear... but keep you eye on it for educational purposes.

  • TheShortSalePro28th December, 2005

    If you come across a distressed homeowner who wants to sell, but owes close to or more than the home is really worth... you might have a preforeclosure short sale candidate. If the home needs repairs, and/or has a second mortgage... your chances at success have increased.

    The Homeowner seeks preforeclosure short sale consideration from his/her mortgagee(s). You, the speculative purchaser, can/should devise a compelling proposal to persuade the lender(s) to accept less than they are due.

    Successful short sale acquisition is part an art, and a science.

Add Comment

Login To Comment