We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group
Investor Friendly Agents
Make It Easy To Be Found
Click Here Now!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
December 03, 2020, 11:26:07 am
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Investor Friendly Agents
Make It Easy To Be Found
Click Here Now!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
December 03, 2020, 11:26:07 am
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:

Author Topic: Short Sale on Property with satisfactory paying history  (Read 5141 times)

Offline kacie

  • Member
  • *
  • Posts: 12
Short Sale on Property with satisfactory paying history
« on: May 01, 2006, 01:10:31 pm »
Is it possible to do a short sale on satisfactory payment for property - I need a short sale but do not want lates or foreclosure on my credit report.

Offline Dmiller

  • Member
  • **
  • Posts: 97
Re:Short Sale on Property with satisfactory paying history
« Reply #1 on: May 01, 2006, 01:17:36 pm »
Is this your property?

From my limited experience with shorts, they have to have a minimum of 1 payment behind to even be considered.  Every bank is different also.  With good history, I don't see the bank wanting to play.

I'm working on one right now that, as of today is 90 days late...and now is the first time the bank will even talk to us with the right department.  I'm only giving my experience as we just started to do shorts.

If its yours...why do you need the short sale?, if you just need out and are looking for options, you could get in touch with some local investors.

Offline kacie

  • Member
  • *
  • Posts: 12
Re:Short Sale on Property with satisfactory paying history
« Reply #2 on: May 01, 2006, 01:25:17 pm »
yes it is mine... I have not been able to live in it since I purchased it.  The house was vandalized beyond living conditions (seller) and the insurance company is playing hard ball as mentioned. THe seller also stripped the house of all its equity so I have no room for nothing.  I can't keep up with the mortgage for too long.  I have to get some where to live.  Staying with family is running out.  So in order to get it fixed would cut into the mortgage expenses which I can't afford to do. I can't take it any longer - I got to do something to get out of this property without giving in to foreclosing or lates. The whole deal was a procey learning experience that has salted me with rehabs and investments deals forever.  I just want out.

Offline joel-investor

  • Member
  • *
  • Posts: 40
Re:Short Sale on Property with satisfactory paying history
« Reply #3 on: May 01, 2006, 03:36:16 pm »
Did you take another property walk-thru before closing?  Typically in this kind of situation, if the property is not in similar condition at closing as it was when you signed the contract, you can LEGALLY walk from the deal *AND* keep your earnest money.  I know that this information won't help you now since you already own it, but it's definitely a lesson to learn.

Unfortunately, in your present situation, I hate to say it but you might be S.O.L.  Suing the seller may provide some emotional gratification, but will not help you financially in the slightest (the only people who profit from lawsuits are the lawyers!), unless you can get a lawyer who will work on a contingency fee.  Even then, it'll be expensive since you're still paying for the cases that the lawyer doesn't win.

Offline kacie

  • Member
  • *
  • Posts: 12
Re:Short Sale on Property with satisfactory paying history
« Reply #4 on: May 01, 2006, 03:59:17 pm »
Your response has got to be better than lesson learned...
quite interesting you would post that???
« Last Edit: May 01, 2006, 03:59:40 pm by kacie »

Offline MikeHgl

  • Member
  • **
  • Posts: 73
Re:Short Sale on Property with satisfactory paying history
« Reply #5 on: May 01, 2006, 04:04:32 pm »
Kacie - is there absolulety no way you could occupy this house as is? What is your current situation beyond living home? Could you occupy it with additional live - in  renters to make things more affordable?
Your sit. sounds dire but walking away should be your last option. Could you get family or friends to put up some rehab cash to make the house habitable? Then you could occupy it with additional renters to help recover your costs until the insurance refunds you and/or your financial situation improves.
"Life's a journey - not a destination"

Offline kacie

  • Member
  • *
  • Posts: 12
Re:Short Sale on Property with satisfactory paying history
« Reply #6 on: May 01, 2006, 04:22:49 pm »
there is no bathroom! (completely destroyed) so the answer is no and the insurance co is pacing with this since Feb.  All resources are put into the payments which are a strain already since this is scrapped from friends and family already pitching in.  Any thoughts.
« Last Edit: May 01, 2006, 04:23:07 pm by kacie »

Offline Dmillin

  • Member
  • *
  • Posts: 23
Re:Short Sale on Property with satisfactory paying history
« Reply #7 on: May 01, 2006, 05:27:03 pm »
Is it possible to do a short sale on satisfactory payment for property - I need a short sale but do not want lates or foreclosure on my credit report.


Nope.  You would just be wasting your time.  It will only work on a second mortgage and only if the first is about to foreclose.

Offline MikeHgl

  • Member
  • **
  • Posts: 73
Re:Short Sale on Property with satisfactory paying history
« Reply #8 on: May 02, 2006, 04:25:14 am »
You really are in a tough spot, Kacie. Is there any source for additional funding? Credit cards? Loans? Sell something you own ( other than the house)
At the very least, it would probably make sense to get the house fixed ( quickly) and put it back up for sale. Hopefully you can extract your investment back out of it wihtout destroying your credit. If this doesn't seem possible then throwing more money at it is a waste. Have you spoke to the bank about your problem yet?
"Life's a journey - not a destination"

Offline kacie

  • Member
  • *
  • Posts: 12
Re:Short Sale on Property with satisfactory paying history
« Reply #9 on: May 02, 2006, 07:54:35 am »
Not yet... I was trying to get as much sound insight/advice as posible before I approached them with anything.  Considering I did get involved in this without understanding or knowing the true risks of the situtation or the bad people I was dealing with. I didn't want to go to them completely lost on the situation.  But thanks to all for all of the information. I guess the seller is 100K richer now thanks to my naive-ness.

Offline 6schicks

  • Member
  • *
  • Posts: 3
Re:Short Sale on Property with satisfactory paying history
« Reply #10 on: May 03, 2006, 04:41:20 pm »
Kacie,
I own a mortgage services company which helps homeowners interface with their lenders.  Let's see what we can do.

Linda
« Last Edit: May 04, 2006, 06:15:20 am by kdhastedt »

Offline 6schicks

  • Member
  • *
  • Posts: 3
Re:Short Sale on Property with satisfactory paying history
« Reply #11 on: May 03, 2006, 04:46:15 pm »
Sorry I broke the rules with the previous post.  I should have read the rules BEFORE I posted!

Offline Barb

  • Member
  • *
  • Posts: 12
Re:Short Sale on Property with satisfactory paying history
« Reply #12 on: May 16, 2006, 06:56:42 am »
Kacie
What a bummer on the house, hindsight is 20/20...
but depending on what type of loan you have, even if you are not behind, the lender may take a short.   how long have you owned the property?

Ask them if they would consider taking a short, since you are unable to keep up the payments, have them do a BPO/Appraisal, and see what the house is worth.   Or ask a realtor to give you a Competitive Market Analysis on the property, minus the fixup costs.  While the bank doesn't accept Realtor CMA's, it will give you a place to begin in your nego's with the lender.  

Barb

Offline wells

  • Member
  • ***
  • Posts: 126
Re:Short Sale on Property with satisfactory paying history
« Reply #13 on: May 16, 2006, 01:06:37 pm »
Hi Kacie...I am so sorry to read about your predicament.

I have a couple of thoughts on this, and if I get it all screwed up hopefully Keith or someone can lend a hand to a rookie and make the necessary repairs to the post  :-* (it can't be any worse than 'oh well you're just SOL, shoulda coulda woulda, 20/20 etc.')

Do you have a copy of your purchase contract? Does it have a clause like this:
Quote
MAINTENANCE: Notwithstanding the provisions of Paragraph XXIV, between Effective Date and Closing Date, all personal property on the premises and real property, including lawn, shrubbery and pool, if any, shall be maintained by Seller in the condition they existed as of Effective Date, ordinary wear and tear excepted, and Buyer or Buyer's designee will be permitted access for inspection prior to closing in order to confirm compliance with this standard.

I am asking this under the assumption that the place looked fine but then the seller trashed it AFTER you signed the paperwork. If that is the case and you have a clause similar to the above, I suggest you boogie over to a lawyer because you might be able to get some relief. I know it says that the "Buyer...will be permitted access for inspection" but unlike other clauses, nothing implies that the Seller is exempted from responsibility if you didn't inspect. This is not to be confused with the 'inspection prior to purchase' clause. This is saying that once you sign the paper work, they have to keep the personal property of the house at least in the same condition as it was when you agreed to purchase it. If a toilet is not personal property I don't know what is :-X

Even if this exact clause doesn't help, I would take my paperwork to an attorney and see what if anything can be done.

Another idea (complete long shot but probably something to at least think about) might be to advertise and find someone who is interested in buying and fixing up a home for themselves and have them buy the house offering seller financing or a Sub2 deal. Depending on how you do it you can get the loan out of your name (with a trust) or leave it in your name. Each option comes with its own set of headaches and there are plenty of posts between REIClub's own Spiderman and Green Goblin regarding Sub2, DOSC, NNN, NARS, etc., so educate yourself thoroughly on what's ok to do in your state and how before you proceed.

Hope this helps...d

edited because it wasn't Batman but SPIDERMAN that battled the Green Goblin, I think  :-[.
« Last Edit: May 16, 2006, 04:20:12 pm by deborahwells »
It's the second mouse that gets the cheese

Offline kacie

  • Member
  • *
  • Posts: 12
Re:Short Sale on Property with satisfactory paying history
« Reply #14 on: May 16, 2006, 07:26:20 pm »
Hi Kacie...I am so sorry to read about your predicament.

I have a couple of thoughts on this, and if I get it all screwed up hopefully Keith or someone can lend a hand to a rookie and make the necessary repairs to the post  :-* (it can't be any worse than 'oh well you're just SOL, shoulda coulda woulda, 20/20 etc.')

Do you have a copy of your purchase contract? Does it have a clause like this: I am asking this under the assumption that the place looked fine but then the seller trashed it AFTER you signed the paperwork. If that is the case and you have a clause similar to the above, I suggest you boogie over to a lawyer because you might be able to get some relief. I know it says that the "Buyer...will be permitted access for inspection" but unlike other clauses, nothing implies that the Seller is exempted from responsibility if you didn't inspect. This is not to be confused with the 'inspection prior to purchase' clause. This is saying that once you sign the paper work, they have to keep the personal property of the house at least in the same condition as it was when you agreed to purchase it. If a toilet is not personal property I don't know what is :-X

Even if this exact clause doesn't help, I would take my paperwork to an attorney and see what if anything can be done.

Another idea (complete long shot but probably something to at least think about) might be to advertise and find someone who is interested in buying and fixing up a home for themselves and have them buy the house offering seller financing or a Sub2 deal. Depending on how you do it you can get the loan out of your name (with a trust) or leave it in your name. Each option comes with its own set of headaches and there are plenty of posts between REIClub's own Spiderman and Green Goblin regarding Sub2, DOSC, NNN, NARS, etc., so educate yourself thoroughly on what's ok to do in your state and how before you proceed.

Hope this helps...d

edited because it wasn't Batman but SPIDERMAN that battled the Green Goblin, I think  :-[.


I had it since 12/05... what type of loans qualify for  this condition?
« Last Edit: May 16, 2006, 07:36:41 pm by kacie »

 




SMF 2.0.15 | SMF © 2017, Simple Machines