Upside Down Mortgage

Posts Tagged ‘SALE’

Loss Mitigation Short Sale

Question: Short Sale?

I'm so confused right now, because I'm trying to purchase a short sale. The seller has accepted my contract and now it's with loss mitigation. My lender doesn't think it's valid because we offered 265 and she owes 325. My agent says that the loss is not that big, because of the current housing market, and the listing agent says he is confident it will go to closing. My lender wants me to look at other options, but i really like this house. I do have something else as a back up, but what I want to know, is it normal for the bank to take a 60k loss, or is our offer amount really not enough to get it approved.
Thanks for all answers
Here in the Washington Dc area, the seller is able to pick which contract they want to go with, and then it is submitted to the bank for approval I know that the bank has to approve it, my question was do you think that they will take that much of a loss?

Answer: All short sales are contingent upon bank approval. This process could take anywhere from a few weeks to months...(just to get price approval) Your lender is correct, you don't have a valid contract until the bank approves and the seller signed contract basically means squat right now. In most cases the banks will take a loss and sell the home for slightly less than Fair Market Value...if it goes to foreclosure they will lose alot more. It is all going to depend on the bank, Fair Market Value of the House and whether or not you have more than one lien holder on the property. If there is a 1st & a 2nd you are going to need bank approval from both.

The last short I did the 2nd lien holder got $1000.00 on a $80,000 note, so they can work (in rare circumstances) Good Luck, consult your agent. Not giving legal advice.

Millionaire Gary Prescott Speaking to Loss Mitigation

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Loan Modification Or Short Sale

Question: Should I try to short sale , deed in lieu or just foreclose al together?

I bought my house in 2004 for $72000, I now owe $92000 total w interest. I asked for a modification and emc mtg co lowered my pymt from $699 to $ 692 (wow) I have not paid since may and wondering what to do next? I want to keep my home but at a lower payment something around $450-$550 inc taxes/ins the value of my home is now down to $7000-12000. Why cant the mortgage lower the loan to what the actual value is. What can I do?

Answer: Yep thats seems to be right what everyone goes through. People think that loan mods will lower the payments and adjust the value to the current market but they are mistaken. Sorry, but your a perfect example of a loan mod. I would try to short sale your property which is a lot better then foreclosing on it. Basically you and the bank are in agreement that you will sell the house at a lower market value then what it is worth right now. It just looks better on your credit report for the future. Before you close ont he short sale you could use your credit (before it get ruined) to find a place to rent. In the meantime that your renting you could work on fixing your credit.

HOW TO DO A SHORT SALE in 3 Minutes! - Simple SOFTWARE

Usually when people are upside down in their mortgages, they also cannot afford their mortgage payments. Whether you can afford your mortgage payments or not, you might want to sell your home and cut your losses. If the home value is plummeting, then the sooner you sell the better your chances of recouping the most money you can.

Selling home when upside down

Bear in mind, though, that if you are upside down, you are not going to get enough money to pay off your mortgage and you might have to pay some out of your own pocket. If you have the money to pay, then you will have no problem, otherwise, you might want to find a way to deal with this before you sell your home. A short sale is an example of what you can do to get you bank to accept less than what you owe.

The key to a successful home sale

If you are upside down, then you will want to sell your home fast and for as much money as possible. That means choosing the right person to help you sell. If you decide to hire a realtor, you need to choose one who is experienced to help you sell fast and for a high price. If you decide to sell youself (FSBO) then you might need to do a lot of marketing to get as many people to be interested in your home as possible.

Choosing a Realtor

Choosing the right person to sell your home is one of the most important steps of selling. Therefore, choose wisely. At a minimum, speak with 2 or 3 Realtors from different companies or agencies. Ask prospective Realtors the same list of questions, in order to compare their answers. Find out what they would do to sell your house.

Above all, choose a Realtor that you feel comfortable with and like. This person will help you make the biggest sale of your life, so find someone you think will do a good job!

The following is a list of questions that may be helpful to ask while speaking with prospective Realtor.

1. How many years have you been in business?
2. For how long have you sold houses in this area?
3. How many houses did you sell in the past year?
4. What is your commission?
5. If I were to work with you, how would you market my house?
6. Will you organize meetings with potential buyers and will you coordinate them personally?
7. Can you give me names and telephone numbers of other families that have used your services?

Lastly, if you want to solve your upside down mortgage problem, you might want to ask if they have any experience with upside down mortgages or short sales.