Financing in Tampa>Question Details

Kyatsmeow, Home Buyer in Tampa, FL

How soon after a short-sale can I buy a house cash?

Asked by Kyatsmeow, Tampa, FL Sat Aug 27, 2011

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Not sure if "paid in full" would be the correct legal terminology to forgive you for the loss on the sale. It's odd that you received $700... was there a "flip" transaction on your house? Unfortunately some Realtors and their insider investors engage in possible mortgage fraud.

Pull up your old address on http://www.hcpafl.org/ and see if it sold to another buyer soon after your sale. If it did, don't be surprised if someone shows up at your new house to interview you about mortgage fraud. The lenders are going after "flip" transactions on short sales. Fannie Mae has hired on several investigators to go after fraudsters.

Good luck on your fresh start and hopefully you were forgiven the loss on the sale. If not, they can also get a judgment and have your wages attached to pay back the lender for the loss including attorney fees and court costs.

In Florida we are a "recourse" state and unless you are specifically forgiven, "in writing" they can go after you for 100% of their loss and for many many years down the road. If you are uncertain about the exact terms written in your short sale approval/demand letter, it may be worth having it reviewed by an attorney.

All the best,
Alma

Alma Rose Kee, PA
Future Home Realty, Inc.
http://www.SoldOnTampa.com
2 votes Thank Flag Link Sun Aug 28, 2011
Just curious............You have cash to buy a house just after having a short sale???
2 votes Thank Flag Link Sat Aug 27, 2011
Kyats:

Look in your form 1099-C for this:

"Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form."

Here is the complete Debt Forgiveness Act for your review:
http://www.irs.gov/individuals/article/0,,id=179414,00.html

Tony Vega
Charles Rutenberg Realty
1 vote Thank Flag Link Mon Aug 29, 2011
Actually, I remembered that we received a 1099-C. I will go over it all again to make sure.
1 vote Thank Flag Link Sun Aug 28, 2011
Thanks, Alma Rose Kee. You were very informative and straight forward with all the possible complications regarding a short sale. I just checked and the original buyer still owns the house. We were first offered $1000, but the lender kept prolonging it and we missed our deadline to close, so we got $700 instead not sure why. I will take a closer look at the wording in our paperwork. If I cant figure it out, we will surely hire an attorney. The good news seems to be that whether we buy cash or not we will at least have a down payment for a house. Thanks again!
1 vote Thank Flag Link Sun Aug 28, 2011
Right Away! Give me a call, we'll talk. I've worked with several investors and eager home owners who dislike the idea of renter after being savvy home owners.
1 vote Thank Flag Link Sun Aug 28, 2011
As soon as you'd like. There's nothing that precludes you from doing so if you have the available funds.
0 votes Thank Flag Link Sun Jan 8, 2012
You can purchase a home with cash anytime during or after the shortsale process.
0 votes Thank Flag Link Sun Jan 8, 2012
Before, during and after. Florida's consititution has a homestead provision precluding a third party judjement from forcing the foreclosure of your homestead. That's why Bilzarian and OJ came here. Once lender has issued 1099 they have precluded themselves from pursuing a dficiency. They can't have it both ways. Doesn't mean some won't try. You'll only need legal counsel if and when lender does something stupid. there are lots of ways to buy real estae, Institutional financing is only one of them and probaly the worst choice, and I'm a mortgage broker. You can do much better with seller financing or a lease option, build equity geometrically faster than with instituional financig. and you have a real person to talk to if you ever need to. Not some pretender lender who sold your loan the instant you closed.
0 votes Thank Flag Link Mon Aug 29, 2011
Oh and one other thing... after 2 years from the closing date on your Short Sale, you may be able to qualify to get a mortgage so you may not have to pay "ALL CASH". You may need to put down 10 to 20% and it's always best to put down 20% when buying to avoid the costly PMI insurance.
0 votes Thank Flag Link Sun Aug 28, 2011
Well, we don't have the cash now, but we've been saving for about 1 yr and plan on saving another 6mo to a yr. My husband was the only one working at the time and his work slowed down and we were already upside down on our mortgage. I was in nursing school. Since then I have graduated and working, so we have additional income. Things have changed for us. No one is saying we did a short sale and have all this extra cash stored somewhere. We have been living way below our means in order to buy a house one day. We just wanted to know if it could be done. Our paperwork says it is "paid in full" and received $700 at closing. It was supposed to be $1000, but we didn't close in time.
0 votes Thank Flag Link Sun Aug 28, 2011
Hi!

Good luck finding a great deal in this Buyer's market.


start shopping today....
0 votes Thank Flag Link Sun Aug 28, 2011
There is no waiting if you are paying all cash. The short sale only affects you if you need a loan.

Jack Gillis, M.B.A., J.D. │ Realtor®
Jack Gillis Realty Advisors
United Real Estate, Broker
5430 LBJ Freeway | Suite 280
Dallas, TX 75240
Cell: 214.718.4910
Email: Jack@JackGillisRealty.com
0 votes Thank Flag Link Sun Aug 28, 2011
Kyatsmeow,
Cash is always good. Go out and find your next home now. You will be in a better position writing your offer as you will not have a mortgage contingency. Happy hunting....

All the best,
Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Sun Aug 28, 2011
As many have stated, you can purchase with cash anytime. As for financing, you are looking at 2 years after a completed short sale. That is assuming you qualify for the mortgage with your credit, etc.
Web Reference: http://www.teamvigil.com
0 votes Thank Flag Link Sun Aug 28, 2011
Oh and one other thought. If your Short Sale did not specifically forgive you the loss (in writing), the lender may come back after you and get a judgement and possibly foreclose on your "all cash" house. If you went under HAFA Short Sale (and received $3k cash at closing) then you most likely were forgiven the loss. If not a HAFA, look at your final approval letter to see if it contains the wording that you are forgiven the loss.

If you were not forgiven the loss, you may want to talk with an asset protection attorney. Take a look

http://www.AlperLaw.com

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty, Inc.
Westchase Office
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Sun Aug 28, 2011
If you have the cash, right away, But, as in the other answer, financing would be very difficult
0 votes Thank Flag Link Sun Aug 28, 2011
Kyatsmeow, how soon after a short sale can you buy a house...for cash? Technically, if you have cash you could purchase immediately. If you applied for financing you'd have trouble. When you ask your current lender for a short sale you will have to show a hardship.

Short sales are complicated transactions. Before beginning down this road, check with your lender, a real estate attorney, a distressed property expert realtor and also your cpa. A short sale begins when you receive an offer to purchase from a buyer. Then you take this offer along with your paperwork and ask your lender for a short sale.

This is a very basic summary of the short sale transaction.
0 votes Thank Flag Link Sat Aug 27, 2011
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