Chapter 13 And Short Sale
I am currently in bankruptcy (13)and trying to get mortgage company to agree to a short sale. It this possible? what are the steps do i need to take? do i need to list my home with an agent? i want to keep my home. do i need to have proof that i have the money for the short sale? so many questions, please help.
How do you propose to sell your home via short sale, and keep it, too?
Your name isn't Houdini, is it?
HA HA, I was hoping to get it refinanced but i am only qualified for a certain amount, which is a couple of thousand short of the payoff total. I am new to this.
You can certainly attempt a discounted payoff (I've done a few) but that would only work if your current lender wants to get rid of you as a customer, and, they feel that discounting now will avert potential losses later on.
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So is the term "discounted payoff " is what i should use instead of short sale? it there any other solution in your opinion to my problem? Do i need to list the house with an agent? so confused!!!!!!
It's clear that you are confused.... so take a breath and make sure you don't shoot yourself in the foot.
If you aren't selling the house.... you aren't seeking a 'short sale' and won't need to list it with a real estate broker.
You need, instead, to seek a discounted payoff from your existing lienholder.
Without a compelling reason to do so, they won't entertain your request.
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One more question do i submit what i am qualified for when asking for discounted payoff or do i have lender give my a figure????
Depends upon what the motivation would be for your current mortgagee to consider discounting...
Are you in danger of losing to home to foreclosure?
You'll need bankruptcy trustee approval, don't forget.
Short Sale Pro, what would you suggest hte homeowner should do? And how do you go about doing it? Your the Pro!!!
He should make application with his mortgagee... with a factual and compelling argument in support of his request that they (mortgagee) agree to accept less than they are due to 1) rid themselves of this particular customer, and 2) facilitate the customer's refinance.
But, the fact is that there is probably sufficient equity such that the mortgagee would hang on, and get paid thru a Chapter 13 repayment plan, or at foreclosure sale. If there isn't much equity, why would a new lender consider the refi? They wouldn't. So, for a new lender to consider a refi for someone in a Chapter 13, there must be a cushion of equity....
I've never head of anyone trying to short sale their own house. To me, it sounds like too much of a risk for the lender and if you're a newbie in the SS business, it's best to leave these "creative" deals to the more experienced.
I fear you'll end up hurting yourself more than helping. Keep reading/learning and perhaps one day you'll understand the basics of what you can and cannot do.
You may want to consider your financial situation further. If you couldn't make the payments on this loan, what makes you think you can afford the payments on the new loan?
I would likely advise you to sell your house and live cheaply for a few years until you can get your finances back on track.
Having no money and lots of debt is not fun (been there, done that) but with some hard work you can get yourself back on track. GOOD LUCK
Hommie,
You say you are in C-13. This likely implies that your credit is not good. You will have a hard time refinancing no matter how much the lender might discount the present mortgage.
As you are in BK you do not get to decide what gets paid and were you might put money that you can get your hands on.
People who try to buy pre-foreclosure homes commonly talk about the present owners being in denial of their real situation and the limited options that they have. I congratulate you for trying to work out a way to keep the house but owe less. The reality might be the only way out is to sell the house and pay the bills. Assuming that you will be able to refinance while in BK seems a little far fetched to me.
John
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Although the following does not pertain to the 1st question, it is still on topic -
I own a company specializing in short sales and am currently working on twenty-two transactions. I recently had a similar situation where the homeowner did not tell me that they were in Chapter 13 and the lender would not review for a short sale until the borrower was dismissed. It took a while but I got the owner to self-dismiss and negotiated a 73,000 2nd lien down to $2000. It was a lot of work but definately worth while. The point was that I have found it to be very difficult to negotiate a sale while the owner is in a chapter 13 bankruptcy.