I recently linked up with a realtor to do my short sale on my own home, now I no the process was going to be long but the opitions that came back to me just seem scatchy to me. They want me to money to pay $5k to the MI and then pay $3k to the investor, the second option is to still pay the MI but then pay a promisary note of $27k for 108 months for no interest payments. Now for some reason this just doesnt sit right for me being that I am in a hardship and I have to pay that kind of money then still have to move out pay a security deposit and move my things. Just doesnt work for me now I guess my big question is if I go thru foreclosure what is the likely hood that the bank will come after me?
Please help!
Partner maybe I’m reading this wrong but you can’t by your own home after you short it. Its against the law, everyone including myself wish I could do that. At best and if you improve your credit you’ll be able to buy again in 2-3 years. Someone is trying to scam you, turn them in. Whats a MI? Herbster
Im sorry I may have misworded some things but to sum it up for yall I am trying to get out of my home because of hardship. Now I am having the realtor do a short sale so that I dont have to foreclosure but for some reason I have to pay $8k in total or $5k and a promisary note to get out of my home which I dont seem to understand y I have to pay when I am already in hardship so my other option is to foreclose and am wondering what are the chances that the bank will come after me later?
Thanks again everyone I am really looking for to you alls input!
Hi Tunckey06,
I have to agree with herbster, that sounds like a scam to me. All the short sales I have done, none of the homeowners had to pay a dime. Turn them in!!!
Yes that’s a scam and I’m a realtor…don’t sign anything consult with your broker or the real estate commission.
Easy solution, say NO! The bank can either take more money now on a short sale or less later on an REO. But you should not have to pay anything. I’ve seen some 2nds want maybe 1-2K but what was offered to you is outrageous. The bank will not come after you. Tell your agent to start working for you, stop insulting you or find an agent that will. Best of luck!
Didn’t you get the email. Herbster
Tunckey06,
Yes, I agree wholeheartedly with the posters here you are being scammed and this realtor you are working with ouch!!!
Most state have anti-deficiency judgments laws/statues in effect on 1st mortage notes so no legal advice intended I would say most likely if it did go to foreclosure the bank could or would not come after you after claiming the asset your home they have no recourse to go after you since they collected when they took the home…
If you have a 2nd be careful there can be a recourse there. I hired an attorney to negotiate and they are doing a wonderful job for us on a SS in AZ. The 2nd lien holder BofA actually approved the short sale offer before my first lien holder did being EMC corp so that was surprising and interesting…
No monies shoud be coming out of pocket in our case we may have a few grand due to the buyer having a VA loan and if we say no we could lose the deal since I had to relocate for my new job and we need to move the property to our buyer who already opened escrow on this.
You need to look closely at the purchase offer/contract to see if the seller would owe any monies at closing since this sounds like a bogus scam… yes turn the realtor into the RE commission in your state…
Attorneys who specialize in short sales are good to check on since we paid only 1K since the rest of their fees comes off the HUD-1 at the closing so really worth it for us. Realtors are not the best at short sales when there is a real legal liability, so attorney’s who are good definitely earn their monies IMHO…
Good luck and get a new realtor this one evidently has NO ethics whatsoever…
Definitely scammy. You shouldn’t have to pay anything as the distressed homeowner. not a dime.
Out of curiosity do you have PMI?
The only times I have seen a borrower having to pay is when the PMI required a nuisance loan. Typically 10% of the forgiveness paid over 15 years at zero interest.
On the other hand if this all started or will begin as a loan mod and if not successful turn into a short then I see services like that all over. Out here in California, about the only profession who can charge a retainer fee is an Attorney so if you’re paying a Broker or Real estate agent that may be against the states DRE rules. With the exception of not being in foreclosure yet. Then they can collect the fee however not charge against it until performance. Most states have come to the table to help crack down on some of the stuff going on.
As mention above, a second, if the first is defaulting, may have a deficiency right. However, depending on your state, that right may be limited to a period of time past the trustee sale. And if a seller carry-back then there isn’t one.
I would sit with a local foreclosure attorney for a half an hour. If you’re a credit union member see if they have a legal service as a member benefit. This one isn’t rocket science so most attorneys will be competent.