Questions About Short Sale
I am currently in foreclosure on my house. I am working with the lender and about to have a try at a FHA partial claim.
However, after finding the home of my dreams, I can rent with option to buy on a land contract, in the country, my current house is in the city, I do not want to keep this house.
The sheriff sale is scheaduled for october 15.
If I did a short sale how do I do it? Do I have to have someone do it for me?
The house is PERFECT, no repairs needed, it is just not where I want to stay for the next five years.
I am on disability right now. It's an FHA loan.
What is the best way out of this? How can I get out without ruining my credit? or can I?
If I accept the partial claim offer, yes, it still keeps my home, and still keeps it within market value, but....now that I have heard about the partial claim, my mortgage company just told me this week about it, I have already found the other house and told them I could move on the 15th of october.
If I take the partial claim deal, I lose the other house.
Any opinions are welcome 
Probably not enough time to do an FHA preforeclosure short sale.
What's the house worth? How much do you owe?
[addsig]
Thanks for responding.
The house is worth 118,000
Owe 103,000
That amount includes not only the payments, but the attorney costs and fees and such. Before this happened, I owed 96,000 and the house has been on the market before for 2 months.
Lots of foreclosures in my area have the market here glutted. I see many of them for sale for pennies on the dollar and that hasn't helped me sell my home. It's in a residential area in the city, on a dead end street, so I don't get much exposure either.
Also, the reason I don't want to keep the house is that I can't afford the payments anymore since disability happened. I used to be able to, now, it's extremely difficult and I have sold most of what I own to pay for the house payments on occasion, when it gets real tight, which it does.
Any property properly priced and adequately exposed to the market should sell within 30 days. If it doesn't, it's either overpriced, poorly marketed, or both.
Presumably, the property is listed with a licensed real estate broker... and presumably it has been priced to sell.
Too often too much attention is placed upon the amount owed... without respect to the market.
Is your home worth $118,000? I don't know. There seems to be a cushion between what is owed, and what it might sell for.
Based upon what you have written... there might be a chance that the lender would agree to postpone the foreclosure sale in favor of you trying to sell the property. However, there is a process that should be followed....
[addsig]
Yes, it is listed but being a first time home buyer, this leaves me at the distinct disadvantage of being a first time home seller!
So, as far as the marketing strategy invoved in real estate sales, I am unfamiliar with what constitutes proper marketing.
To research the market price of my home, I got an appraisal, checked on comparable properties in my area that are for sale and that have recently sold, and took into account the tax assessment value which I just recieved in August of this year from the county. The taxed assessed value of my home increased 4,500 from last year.
Since it has been on the market, only one person has been shown the house, only one time did someone call to request showing the house. I really don't understand why that is, but, perhaps it is the fault of the marketing of the home. Something I will have to check into, which involves some research into the proper marketing of real estate and doing comparison of such with the way my home is being marketed? I am on the right track here?
How long does one need to complete a short sale, for instance, if I could somehow negotiate a way to remove the home from foreclosure, could I then proceed with the short sale of the home after that? Perhaps a partial claim payment from FHA, then after the removal of the home from foreclosure, investigate a short sale option?
Thank you for replying and sorry about this long post.
You have two, separate challenges. The first is to sell your home. The second is to sell and have your lender accept proceeds as payment in full.
You must instruct your real estate broker to price the house to sell within 30 days. You must also seek, in writing, a request for preforeclosure short sale.
I know of nothing that will prevent you from accepting the partial FHA claim relief to stop the pending forecloure sale, and, simultaneously seeking an FHA approved preforeclosure short sale.
Your broker needs to be on the same page.
[addsig]
thanks for replying.
I contacted the real estate agent, and she stated that she would release me from my contract with her so that I could work on this situation freely. I thought that was very nice of her to do so.
I also now have been in contact with someone who might be willing to take this short sale thing on for me, and negotiate with the lender for the short sale before the foreclosure takes place, I am unsure if this will be possible, but I am willing to meet with him and give it a try.
He and I talked for awhile and I explained that I just wanted out, if he just wanted in, he was more than welcome to try. He is coming tomorrow to look at my home!!
Thank you so very much for this advice!
I never would have attempted to contact the real estate person to ask her to relieve me from the contract without this board! I might come out of this fairly well yet! my hopes are beginning to rise now!!
Gee, did I suggest that you sever your ties with the real estate broker? A broker can be a tremendous asset to any short sale negotiation. That, in my opinion, was a mistake.
Well, I contacted her and told her the story and she said that she would not be able to help me do this. She said that she still has to get her commission in full and she doesn't have any available options for me at the moment.
She said that I would be better off working with a private person, or another real estate company in order to sell my home. She said that she would not want to spend her time if she didn't know if I was going to end up doing a short sale on the house, or if I was not going to be able to do it, and then end up in foreclosure.
Basically, I contacted her and she said that to me, so obviously, she wasn't interested in this, so I am better off to have another real estate company, and perhaps one that is marketing my home a bit more aggressively.
She had the flyer's to put up for the price decrease I asked her to do a few weeks ago, and still has yet to change the listing price, nor had she dropped the new flyer's with the new price to me. So her lack of attention may have been the reason my house was not selling as it should have.
I just took your advice to check out the marketing of real estate and discovered that she was not really marketing the place. Now I can possibly get someone who can.