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Short sales
Posted on 2/5/12 at 12:38 pm
Posted on 2/5/12 at 12:38 pm
I was told by a real estate agent that I could short sale my house and if the bank accepted an offer for less than I owe, they would wave the remaining balance on my loan penalty free. She said my credit would not be effected in anyway. Is this true? Does anyone have any experience with this??
TIA
TIA
4
Posted on 2/5/12 at 12:47 pm to bringonusc
How is anyone in the BR area underwater on their home? Unless you bought in the summer of '08 and financed 100%
This post was edited on 2/5/12 at 12:48 pm
Posted on 2/5/12 at 12:49 pm to bringonusc
quote:
She said my credit would not be effected in anyway.
Ask her to put it in writing. She is lying or stupid. Either way do not take advise from a real estate agent regarding credit. Short sales can be as bad on your credit as a foreclosure.
Posted on 2/5/12 at 12:53 pm to lsufan1971
quote:
She is lying or stupid.
Posted on 2/5/12 at 12:56 pm to Golfer
quote:
How is anyone in the BR area underwater on their home? Unless you bought in the summer of '08 and financed 100%
I bought in October of 2008 and yes, while I'll admit it wasn't the smartest thing I've ever done, I did finance 100%.
Posted on 2/5/12 at 12:58 pm to bringonusc
quote:
I bought in October of 2008 and yes, while I'll admit it wasn't the smartest thing I've ever done, I did finance 100%.
Well that's some rough luck.
How much are you underwater by? Even with all that, it probably still isn't worth destroying your credit over.
Posted on 2/5/12 at 1:02 pm to lsufan1971
quote:
Ask her to put it in writing. She is lying or stupid. Either way do not take advise from a real estate agent regarding credit. Short sales can be as bad on your credit as a foreclosure.
Bad part is, she's one of my wife's good friends so I know shes not trying to screw us. She actually believes this.
Posted on 2/5/12 at 1:04 pm to TheHiddenFlask
quote:
How much are you underwater by? Even with all that, it probably still isn't worth destroying your credit over.
It's only like $10,000. And I wasn't planning on doing this anyway....I'm just stating what I was told.
Posted on 2/5/12 at 1:22 pm to bringonusc
quote:
It's only like $10,000. And I wasn't planning on doing this anyway....I'm just stating what I was told.
Unless you have no means to pay your mortgage, don't short sell. That's crazy what she said about your credit not being affected.
Posted on 2/5/12 at 2:04 pm to CoolHand
quote:
Unless you have no means to pay your mortgage
This is not the issue what so ever. The reason this all came up is because my wife and I were thinking about buying a larger house while prices are down but we didn't want to lose on our current house. When we questioned her (the agent) about this, she told us about this short sale option.
Posted on 2/5/12 at 3:12 pm to bringonusc
So she told you to short sale and then step into a bigger, more expensive house to move up? Bordering on unethical IMHFO.
Posted on 2/5/12 at 3:21 pm to VABuckeye
I realize she's a friend, but no freakin way she'd be my agent after that.
Posted on 2/5/12 at 3:28 pm to bringonusc
quote:
she told us about this short sale option.
A short sale is not supposed to be an "option" for just anyone. It's there for a distressed sale. It certainly does not exist so someone can just bail out of a property and move up to something bigger and better without having to write a check to get out of the property.
I seem to get the feeling that these are your thoughts as well so please don't take this as personal lecturing or bashing to you.
This post was edited on 2/5/12 at 3:29 pm
Posted on 2/5/12 at 3:55 pm to VABuckeye
quote:
I seem to get the feeling that these are your thoughts as well so please don't take this as personal lecturing or bashing to you.
Yes I agree with you 100%. I just couldn't believe someone would think this is true!
Posted on 2/5/12 at 5:26 pm to bringonusc
100% not true.
The bank would be charging off the remaining portion of the loan and you can be assured an attorney will be retained to collect on that remaining $10,000. Oh, and since it's a collection, it will show up on your credit bureau, nuking your credit score.
The bank would be charging off the remaining portion of the loan and you can be assured an attorney will be retained to collect on that remaining $10,000. Oh, and since it's a collection, it will show up on your credit bureau, nuking your credit score.
Posted on 2/5/12 at 8:50 pm to bringonusc
quote:
The reason this all came up is because my wife and I were thinking about buying a larger house while prices are down
You should definitely do this, solid strategy.
Posted on 2/6/12 at 8:08 am to ProximusBlackfin
It will show up on your credit big time, about a 100 point drop. Some short sales the lender agrees not to have you pay the difference and some do. It is what ever deal you come to with your lender, but all will drop your credit score.
Posted on 2/6/12 at 12:46 pm to Golfer
quote:
How is anyone in the BR area underwater on their home? Unless you bought in the summer of '08 and financed 100%
The condos I live in were newly renovated downtown and the investors bought them for $125k and $200k for 1 & 2 BR ...i bought my 1 bedroom for 65k and have seen one go as low as 55k
Posted on 2/6/12 at 1:56 pm to bringonusc
quote:
I was told by a real estate agent
quote:
She said my credit would not be effected in anyway
1. Quit listening to RE agents. Keep in mind in LA it requires only two weeks of school to sit for the exam.
2. RE agents aren't lenders and thus generally don't know about lending (as is obvious from this thread).
3. The RE agent's job is to get people to buy/sell properties b/c that's where they make their commission. It is not surprising at all to me that your wife's friend/agent is pushing you to buy/sell property regardless of how financially sound the decision is for you.
Posted on 2/6/12 at 2:31 pm to bringonusc
It could be true. It is, however up to your bank/lender.
You wont know until you initiate a short sale with your lender as to what they are going to do. Your lender can explain to you what is necessary to initiate a short sale. (If you dont trust your Realtor)
All offers you receive on your house, once you accept it, will be subject to bank approval.
BTW, I highly doubt your agent promised you anything. She is more than likely relaying scenarios of different transactions she has been involved in if i had to guess. Has she done many short sales?
Remember, the responsibility of finding an excellent Realtor falls on you. If you choose a "Friend" IMO you made a business decision based on personal feelings. Which is fine as long as you own that decision no matter what. Do your homework and check references. Good Luck
You wont know until you initiate a short sale with your lender as to what they are going to do. Your lender can explain to you what is necessary to initiate a short sale. (If you dont trust your Realtor)
All offers you receive on your house, once you accept it, will be subject to bank approval.
BTW, I highly doubt your agent promised you anything. She is more than likely relaying scenarios of different transactions she has been involved in if i had to guess. Has she done many short sales?
Remember, the responsibility of finding an excellent Realtor falls on you. If you choose a "Friend" IMO you made a business decision based on personal feelings. Which is fine as long as you own that decision no matter what. Do your homework and check references. Good Luck
This post was edited on 2/6/12 at 2:33 pm
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