My wife has a property that she bought prior to our marraige and now we can no longer pay for the payments(but haven’t missed a payment yet). Can I negociate with the bank for a short sale and buy the property back using my name only? Only her name is on the original loan. There is no 2nd loan. I think the house is worth 264k-270k per appraiser’s advice. Current owe 257k to the bank. If short sale is possible, is it possible to get 20% off the FMV? Would really appreciate all responses. Thanks.
Posted by: statm0t0
My wife has a property that she bought prior to our marraige and now we can no longer pay for the payments(but haven’t missed a payment yet). Can I negociate with the bank for a short sale and buy the property back using my name only? Only her name is on the original loan. There is no 2nd loan. I think the house is worth 264k-270k per appraiser’s advice. Current owe 257k to the bank. If short sale is possible, is it possible to get 20% off the FMV? Would really appreciate all responses. Thanks.
I would say no.
Were I the bank I would know perfectly well that the market value is $265K. Why in Heaven’s name would I sell it to you for $213K?
Furthermore as you are not behind in your payments I would not expect the bank to so much as talk to you regarding a short sale if you presented yourself to them as a third party buyer. If you are having problems making your payment and not simply trying to scam the bank you should talk to them. Many banks have programs in place now to help homeowners avoid foreclosure.
Thanks for the reply. Yeah, I definitly am not trying to scam the bank but was only unaware of the options that are available for me. Thanks again I will talk to the bank today.
What about selling this thing with a lease option or some other attractive terms that might bring in some additional buyers?
When doing a lease option, do I get a downpayment up front? If I do then I might be able to use that money to help pay the mortgage for a couple of months otherwise I might not have any money to pay for the next payment. How do I do a lease option? What do I put in the advertisment?
Advertise it as ‘rent to own’ or lease option property. This usually attracts more potential buyers than a straight for sale property, but many of the prospects will be of lower credit quality so do your homework. Yes, you charge an option fee up front that goes into your pocket and is not returned to the tennant/buyer even if they don’t close the deal. The fee is for giving them the right but not the obligation to purchase the property. You will typically credit a portion of the monthly rental towards the eventual down payment should the tennant close on the house.