Short Sale Questions From Homeowner
I have a property in Kansas that I am trying to sell. It has been on the market since July and no contracts so far. It does need some work but I think the right buyer could make some money on it and so does my Real Estate agent. I was wondering about a short sale. It has two mortgages on it. 1st one is a FHA loan left owing about 26000, the second is left owing 25,000. We have it listed at 62,500 currently but the FMV according to the REA is 79,900. I live in Texas now and had sold it Contract for deed but acquired the property back and they did not maintain the property very well so the roof is leaking and it needs some repairs. Do you think we would qualify for a short sale? Any help would be appreciated. Oh , yeah and does anyone know how a short sale will show up on my credit report. Will it show as paid in full?
Thanks
Weaver1969[ Edited by Weaver1969 on Date 12/06/2003 ]
While I'm just now doing my first short sale/pre-forecl (& I can't offer the level of expertise as John $, or John LV.), I will offer this assistance:
Put the KS county & town/city in here, so some SS pro will see it & maybe make you an offer.
If some SS pro came in now, he/she might well be able to negotiate DOWN, the payoff figures on both 1st & 2d, so as get him/herself some real equity here, & have a very real profit potential after rehab & resale to end HO Occumpant.
You could also be a real contributor here if you'd report what finally does happen on this prop.
Good luck.
John Merchant
The property is in Tonganoxie Kansas, Leavenworth county. MLS # is 1127155 if you would like to see pictures. Again, does anyone know how a short sale will be reported on my credit report? Will it hurt my credit in anyway?
Thanks again,
stewarts3x
First of all, you can't do a short sale unless the property is in foreclosure. Is the property in foreclosure by the lender? I didn't see where you mentioned that it was. However, if you really want to unload the property..why don't you sell it to someone Sub2. Good Luck!
Hate to rain on your parade, but there is zero chance on shorting the first (an FHA insured loan) and a slight chance of shorting the second. If the second does agree to accept less, it won't be much.
Why? Too much equity. If your estimates are accurate, there is not much motivation for even the second to accept less than they are due.
I might question the real estate agent's estimate of the property's as-is, FMV.
If a property is properly priced, and has a reasonable exposure to the market... it should sell within 30 days. If it doesn't, either it's priced too high, isn't getting enough exposure, or both. If you can afford to have the property appraised by a licensed real estate appraiser, it might be well worth the expense. That would help set the price accurately, and help minimize the haggling with a propsective buyer.
The previous post suggested that a short sale isn't possible unless the loan or loans are in foreclosure.
That isn't quite accurate.
Perhaps the poster should have qualified his/her statement, "In my experience, to qualify for short sale the mortgage loan must be in foreclosure..." which would probably be true.
Shortsale Pro -
Explain to me. Correct me if I'm wrong. Doesn't a property 99.9% of the time have to be in foreclosure before a shortsale can be attempted. If this is not true...please give me clarification on this? Thanks!
99.9% of the time? I don't know. Perhaps. I'd say that 99.9% of my short attempts over the last 20 years were for loans in foreclosure. While I agree that a short on a performing loan is the exception to the rule, I've been successful in all my formal attempts to short a performing loan.
Speaking in absolutes on these boards may fail to appreciate the unique situation that falls outside of the norm.
While your conclusion that "to short sale, a loan must be in foreclosure" is generally accepted to be true.... it is somewhat misleading in that it is false.
Sometimes, I work like a catcher on a baseball team. I 'catch' a lot of unusual situations that I sometimes accept as consulting gigs. I guess my responses are based upon my level of experience. Not to toot my own horn, but I've been around for awhile. Last year I was contacted by CBS TV News twice for story content during it's sweeps week, several magazines' story editors, and last week it was Readers Digest.
I suppose I have had some unusual expereicne that fall outside of what is generally acce[ted to be true.
I read a lot of misstatements of 'fact' on this, and other boards that are accepted as true. Sometimes, I step in and offer my opinion.
Yesterday and today it's been snowing. My back hurts. I don't feel much like working on my next project. So I cruise the boards. Since I feel like TCI is 'family' I hope that you don't object to my comments.[ Edited by TheShortSalePro on Date 12/06/2003 ]
so a better statement would have been ...most of the time a house has to be in foreclosure before a bank will do a ss.
That statement is 100% correct.