Q: I made an offer on a short sale in Morrell Park. I backed out of the deal because the sellers were using a short sale negotiator who wanted to charge me extra money just for negotiating their short sale. Shouldn’t it be the sellers’ responsibility to pay this person? After all, they are the ones who are benefitting.

A: The seller is not the only party who benefits from a short sale. Short sales are considered “bargains” in the real estate world because these homes can be acquired for up to 20 to 30 percent less, or more, than the average price of a regular, non-distressed home. continue reading »

Q: I just signed an agreement for my home in Millbrook. It is a short sale now. Will it go to settlement? I am so worried I will end up in foreclosure. I don’t know what to do.  

A: Prepare yourself for a long road ahead between signing this agreement and going to settlement, if it happens. Your mortgage lender will need to give you approval to sell your home since you will not be paying back the entire loan. Lenders are not quick to agree many times and this could take a while.   continue reading »

Q: I made an offer on a property in Holme Circle that is a “short sale.” It has been six months and still NO REPLY from the seller’s bank! The real estate agent told me it could take awhile, but now I feel like she is not doing enough. Is she giving us the run-around? How do I know if the bank ever really got my offer? How long is this really supposed to take?

A: Despite its name, a “short sale” is anything but short. The short part of short sale means the seller is not paying off the entire loan, and lenders don’t easily approve of that. For the buyer, it would be more accurate to call it a “Take-forever-and-even-then-you-might-not-get-it Sale.” That is the main reason why these homes are priced much less than others in the market. continue reading »

Q: My neighbor’s house has been for sale for the last nine months. He told me it is a short sale and has moved out. He didn’t come back to cut the grass at all in the summer. Since it’s snowed and he hasn’t come back to shovel either. It’s a short sidewalk, just three cement blocks to clear. To whom can I complain?

A: This guy has moved out and moved on. Since your neighbor is selling his home by short sale, he will not make a dime from the sale. In fact, the sale will leave the mortgage lender short, as it will be getting less than your neighbor owes for the property, hence “short sale.” continue reading »

Q: I live in the Northeast, but hope to move in the spring. I have neighbors who said their mortgage is higher than their home is worth. This week they decided to simply move out and let their mortgage company take it. I now have a vacant home on my block. What will happen now?

A:  Your neighbors have elected to default on their mortgage and leave in their wake lower home values in your neighborhood. The fact is, no matter what the defaulting homeowners’ excuse, foreclosures decrease nearby home values. continue reading »

Q: I lost my job and can no longer afford my home in Wissinoming. I don’t have any money to bring to settlement, so selling it for less would be problematic. My agent listed my house for sale in January for $94,900, because I owe $83,000 and I needed to make sure the sale covers my closing costs. No one is even coming to see it. My agent tells me the average sale price for the same house in my neighborhood is about $78,000. Can I try for a short sale?

A:  Short sales are not easy, and, despite their name, they are anything but short in process. There have been many homes that didn’t make it through the short sale process and have ended up in foreclosure.   Contact the Loss Mitigation department of your mortgage company to find out what documentation is required to apply for a short sale. Usually you will need the following items, among others: continue reading »

Q: My house is in foreclosure. I have not been able to make the payments in several months. I want to sell it before the sheriff does. What should I do?

A: If you owe more than market value, you have some work ahead of you. continue reading »

Q: I understand interest rates are low and I have heard it is a good time to refinance, but I’m having a hard time finding a bank to do a refi on the home I bought in 2007. Why?

A: If you purchased in 2007, you may have a potential appraisal problem due to the increasing number of short sales and forclosures that are now being included in appraisals.

According to the National Association of Realtors, approximately 38 percent of existing home sales in 2009 were distressed sales, and 12 percent were short sales. Foreclosure sales accounted for two out of three distressed sales, and the rest were short sales.

Stan Reinford from Bank of America Home Loans had this to say: continue reading »

Q: My soon-to-be ex-husband and I bought our home in Lawncrest in 2007. Now we are getting divorced and are in foreclosure, too. I think we owe more than it’s worth but I was told by my lawyer to try to sell it through “Short Sale.” What do I need to do?

A: Even if you owe more than the home is worth, you can still try to sell it through a “Short Sale.” Nothing like their name, short sales are a lengthy process where the lender must agree to accept less for the loan than what is owed. continue reading »

By Stacey McCarthy

Q:  There is a home for sale on my block in Castor Gardens that says it’s a “short sale,” and my son would like to buy it. Does that mean it will be a fast settlement, and can my son offer less than the owner is asking?

A:  Selling a home through a “short sale” means that the homeowner owes more on his mortgage loan than the price he is realistically able to sell it today. Either the homeowner is behind on his mortgage payments or is facing a hardship and is trying to avoid foreclosure by selling the home. A successful sale of this property would be “shorting” the mortgage lender what is owed on the mortgage. Despite the name “short sale,” it is normally not a short process.
continue reading »