I have choices before the bank decides to foreclose on my mortgage:
*short sell
file for bankruptcy
either way, my credit will be damaged and I’m restarting ALL over again
—first divorce (2 years ago…with GREAT credit in the high 700’s
—finally got a job within in my career field
—now, THIS BAD HOME mess
Q: Can I ask the buyer for money to help me move into an apt and out of my parents home?
Q: Is asking the buyer for money illegal?
I’ve had “ugly home” company approach me about the short sale and just last week an investor asked if he could take over the mortgage payments.
So, what can I do?
I’ve never lived in the house, I had to evict the folks who were living in the house (illegally) and I’m living with my elderly parents.
I’d love to move on and get my own place – as I had intended on doing when I purchased the house in the first place, which is now in a non livable condition.
It is illegal for the seller to recieve any money in a short sale. If someone wants to take over your payments, it is not a short sale.
You can sell items to the buyer however and the buyer can purchase furniture, appliances, etc, etc. for any amount which may be enough for first months rent and deposit on an apartment. This is a private sale person to person.
The lending institution that holds the mortgage must approve all short sale contracts. Historically lenders have approved buyer and seller concessions under limited circumstances. Lenders will usually pay seller concessions up to 3% of the purchase price. In certain situations the lender will approve buyer concessions to cover certain closing costs that the seller is unable to cover. The buyer concessions that lenders have approved include certain title fees, transfer fees and local recording fees. It is unlikely that the lender will approve a short sale that requires the buyer to cover costs associated with relocation.
However, you can negotiate with your bank directly to see if they are willing to pay you to walk away from the home. Some lenders recognize the costly expense of foreclosure and are willing to pay sellers to walk away in order to avoid that cost. This option should be negotiated with your lender prior to presenting a short sale offer for approval. As with all negotiations make sure your receive any offer from the lender in writing.
You mentioned the house was vandalized. Did you have insurance that might cover that? If so, you should certainly file a claim.
Confirming, it is illegal to “ask” for money. Also confirming, it is legal to “sell” non-related items such as furniture or whatever and for whatever price agreed.