Foreclosure in Saint Paul>Question Details

Sheila, Home Seller in Saint Paul, MN

If we do a short sale on the house would it be garaunteed to sell before the foreclosure happens?

Asked by Sheila, Saint Paul, MN Thu Jul 1, 2010

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Hi, Sheila!
No guarantees on any of this. The short sale process is a volatile and subjective one, contingent on SOOOOO many factors coming together at the same time.

Please get some good advice (not that this forum is not good advice!!) from an agent who specializes in short sales. All of the information you get here is VERY general since we don't know your specific circumstances.
1 vote Thank Flag Link Fri Jul 2, 2010
Many times if the short sale process is producing interest or you are in serious negotiations with the bank with regard to a short sale they will delay the sale date, but usually will not vacate the proceedings until the deal is done.
Have you exhausted all your options with regard to a modification with the bank because short sale may be a less intrusive credit event it is still a life changing one and you will have a difficult time for many years to come.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of Foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like; insurance rates, your job (yes employers are checking credit records these days).

Your credit score will be reduced by 200-400 points, short sale and deed-in-lieu-of a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure – “YES” Short Sale and Deed-in-lieu-of are forms of foreclosure
• Buying after a Walk Away Foreclosure
The waiting period is 7 years
• Buying after a Foreclosure
The waiting period is 5 years with 20% deposit up to 7 years.
• Buying after a Foreclosure with Extenuating Circumstances
The waiting period is 3 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.
• Buying after a Short Sale
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Short Sale with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.

In addition to the waiting period and minimum down payment, you will be required to have a minimum FICO score and the home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.

Good Luck,
Bob Patrick
Buy a home after foreclosure, short sale, deed-in-lieu-of, or bankruptcy expert.
0 votes Thank Flag Link Tue Jul 6, 2010
Hi Sheila:

Sorry to hear about your situation.

Well, depending on how far along you are gone with the bank is the question.
Also what has been your interaction, with the bank.

If you have shouted or abused it will be tough.

Get a Realtor to do a short sale and start the process.

Best Regards
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Fri Jul 2, 2010
Shelia,

There is no guarentee on any short sale. Short sale is the mortgage company or companies (depending on the amount of mortgages you hold) agree to sell the house for less than what you owe.

But there are a lot of factors that add to the soup of selling a home. The biggest factor is supply and demand. Unfortunely, the longer this recession lasts, the more homes are going to continue become availabe and buyers are showing the market that they are in no hurry to buy with so much to choose from.

There are goverment backed programs available through your mortgage company, organizations that can direct you and real estate agents that are sadly well educated in this part of real estate, who are able to represent you.

I am sorry you have deal with this situation and wish you the best.
0 votes Thank Flag Link Fri Jul 2, 2010
With a short sale there are no guarantees!
There are things you can do to strengthen your position.
For one, get an agent who is VERY experienced with short sales - and who has a track record of success closing them.
Two, make sure it's priced correctly. This should be your agent's responsibility, but often times agent price short sales very low to generate attention. If priced too low this will only halt or delay the process.
Three, be in touch with your bank. Let them know what's going on. Find out too if a loan modification is an option for you.

Good luck,
Richard Schulman
Keller Williams Realty
0 votes Thank Flag Link Fri Jul 2, 2010
There r no garauntees in Real Estate sales. In case of a short sale the same is valid. But remember to hire a good negotiator or attorney who will handel your negotiations with your lender. As often the forclosure process is going on side-by-side by the lenders attorney & the banks reps or even the negotiator has no clue of the foreclosure process. So if some one who understand this can do a good job.
But remember i'm not an attorney not giving legal advice.
0 votes Thank Flag Link Fri Jul 2, 2010
no, it isn't guaranteed. The bank has a lot to do with this. The bank has to be willing to take less than you owe on the house for the short sale to happen.
0 votes Thank Flag Link Fri Jul 2, 2010
There is NEVER a guarantee. You need a good Real Estate Professional who knows your market and specific area. Real Estate of Regional! You also need to talk to an attorney. You could be facing the bank or mortgage insurer note to be paid, or a tax statement. An attorney can handle that part of the negotiation for you. A Realtor can get it marketed and priced right. It takes the team to be successful. Pick your team!

Debbie Albert, PA
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Fri Jul 2, 2010
Sheila there are no guarantees, however you can usually get them to delay teh foreclosure as long as you have not enetered into teh 3 week period where they have already set an auction date.

You need to contact your bank, ask for the home retention department, tell them you would like to sell your home by a short sale, ask if they can delay collection actions while you have a fair chance at selling. you should hire an agent who is well expereinced with listing and negotiating short sales. You should ask if tey will negotiate or if they have a prrofessional neotiator who gets paid a percentage when the deal closes. Do not pay anyone upfront for a short sale.

please check out my blog

http://www.trulia.com/blog/scott_godzyk/2010/06/how_to_get_a…


HOW TO GET A SHORT SALE APPROVED
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Jul 2, 2010
Simple answer-no. Sheriffs sale yes. But it's not guaranteed that your house will on the MLS before Repo gets you.
0 votes Thank Flag Link Thu Jul 1, 2010
trustee sale date = Sheriff Sale in Minnesota.

Visit the link for Ramsey County.
0 votes Thank Flag Link Thu Jul 1, 2010
There are no garuantees that it will sell before the bank forecloses. What you need to do if you are considering a short sale is contact your lender and explain what you are doing. If they already started a foreclosure, then it may be too late. If not, then you may be able to stay off the foreclosure and do a short sale. Call your lender ASAP.
0 votes Thank Flag Link Thu Jul 1, 2010
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