Foreclosure in 83651>Question Details

Idahogal, Home Owner in 83651

Can the bank take my home if my husband short sales his? Idaho.

Asked by Idahogal, 83651 Mon Aug 13, 2012

My husband bought a home before we married and needs to short sale it. I had my home paid for prior to our marriage, but since we do live in a community state (Idaho) is it possible for him to short sale his home without the bank coming after my home? He is the sole name on his mortgage, and I'm the sole name on my home. I've had my house paid off for 5 years. He has owned his home for 3 years. We have been married for 2 months.

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I am not an attorney, but the key is during the short sale process is to have the bank sign off that the debt has been satisfied as a result of the short sale and they waive their right to any deficiency judgments.

Sincerely,
Jim Paulson, CRS, GRI, EPRO
Broker/Owner - Progressive Realty Corp
208-573-0471
0 votes Thank Flag Link Thu Aug 16, 2012
Idahogal,
There are people who have had rentals or 2nd homes that they have had to short sale and they were able to keep their primary property. For a professional opinion on that, you would want to talk to a real estate attorney. I have also know people who have bought a different house and moved and then did a short sale on their original residence. The banks will want to know what the hardship is that has made a short sale come to pass.
What your husband needs to do is to get an agent to get his home listed and get an offer on the property. Once the bank has that offer and things progress, you will hear back from the bank as to their terms and conditions of the sale. At that time, your husband will have the option to agree or not agree to the terms of the bank. It is a matter of negotiating throughout the process to come to terms that will be beneficial (hopefully) to all parties. Depending on the bank that is being requested to take a short payoff on their loan will depend on how they will deal with the short sale. There are several things that all banks want when considering a short sale and those are a) bank statements b) pay stubs c) hardship letter d) tax returns e) financial statements. These items plus any other item they request are the basis for their decision along with a broker price opinion of the property and eventually an appraisal. Since you are married, they may require these items from both of you. There are some situations where the short sale lender has asked for some contribution towards the short sale. This is part of the negotiations once the bank has considered the offer and all of the others items involved in the situation. One thing I do know is that a short sale on someone's credit is better than a foreclosure. Since each situation is different, let me know if you would like to take some time to talk.
0 votes Thank Flag Link Mon Aug 13, 2012
A few extra details....
-My husband's house is worth about $77K, but has $119 left on the loan. He is the sole income coming into our house as I'm a stay at home mom. We have used his house as a rental but are losing money on the mortgage and upkeep. We don't have any other assets and the only other debt we have is a business loan my husband took out 10 years ago and we will continue to pay on for the next 10 years. We have joint savings and checking, but no other debts, joint or separate.
Thanks for all the info!
Idahogal
0 votes Thank Flag Link Mon Aug 13, 2012
this sounds very straight forward and you should be able to successfully complete a short sale with the right agent. I spend a lot of time in Nampa and am happy to assist you with the listing, negotiating, and selling of your property. Please give me a call. Thanks,
`Curtis
Flag Mon Aug 13, 2012
The short answer is "yes, you can". There are many additiional variables to this equation, that I cannot answer from the information you have provided, that may result in you and your new husband having to participate (i.e. pay money to the bank) in order to complete the short sale. Because you are now married, the bank will look at both of your incomes and your seperate & joint bank accounts in the short sale approval process. I am in the process of completing a short sale right now for couple in a similar situation and and happy to discuss the process with you.
~Curtis

Curtis Ellis
curtisellis@ellisrealestatecompany.com
(208)859-2818
0 votes Thank Flag Link Mon Aug 13, 2012
I don't think Community State matters.
What matters is that Idaho is a Non-Recourse State:
But it is not Black and White;
This is important enough that you should talk to an Idaho Real Estate Attorney.

Good luck and may God bless
0 votes Thank Flag Link Mon Aug 13, 2012
Sometimes a bank will not allow a short sale if the owners have other assets, but they can not take your house. This is my opinion and not legal advice which I do not give. I am not sure of the laws in Idaho, some states are recourse states in which case they can come after the difference they lost in a short sale but that would be a question for a lawyer.
0 votes Thank Flag Link Mon Aug 13, 2012
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