Foreclosure in Tampa>Question Details

tleigh517, Home Owner in Port Richey, FL

Our home is currently in foreclosure and we're thinking of a short-sale, can we go ahead and move or do we need to stay in it?

Asked by tleigh517, Port Richey, FL Sat Apr 14, 2012

This is our second time in foreclosure and there is no way we can get caught up with our mortgage. We had the house as a short-sale the first time (mortg co gave us a good deal to stay after about 6 months) and it was a hassle with realtors showing up with people with no warning. I have a dog and kids that take naps so I requested that it only be shown by appt only, but they would still just stop by. Do we have to stay in the house until it sells or can we move?

Help the community by answering this question:

Answers

8
No you don't have to stay in the home. You are free to move. The big things I would be concerned about would be.

1. Maintain the homestead on the property, this is key for certain tax advantages especially if you refinanced and took cash out at any point while you owned the property.
2. Do your best to get the deal done by the end of the year. Certain rules are changing with short sales and taxes so it's in your best interest to do everything you can to sell by the end of 2012

I hope this helps... I know a great agent that has done a number of short sales in Pinellas County and would take good care of you. Let me know if you would like a referral.
0 votes Thank Flag Link Tue Jul 10, 2012
A lot of times lenders will look more negatively on sellers that they deem have "abandoned their homes". Some investors will deny your short sale specifically for this reason. You are also living for free right now. Its likely in your best interest to stay until you are further along in the process.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Tue Apr 17, 2012
tleigh517, the realtors showing up were helping you to sell your home. The hassle will mushroom as you go through the foreclosure process. Consider how to work with creating an easy access to your property so that agents can show your property and get you an offer to start the short sale process. You need an offer to start the short sale process, similtaneous to this the foreclosure process is continuing to move forward.

Whether you stay or you go, dealing with your financial situation should be paramount. Have you spoken with a bankruptcy attorney? Sounds like you need some legal and tax advise. Seek good counsel.

Lynn Brock
email@brockrealty-inc.com
941.313.1234
0 votes Thank Flag Link Sun Apr 15, 2012
Hi BoobyBear,

Right now lenders are reducing the principal amount owed. This wasn't the case in the past but with the "settlement" for the Robosigning fraud some of the Settlement money is being used to reduce the principal amount owed. From my understanding this is only if the lender, i.e. Bank of America, Chase, Wells Fargo actually is the "investor" that owns the mortgage.

So first call the company you make your payment to (the "servicer") and ask them who the investor is that owns your first mortgage. If it is BofA, Chase or Wells then you may be able to lower the amount of your principal by as much as $100k! If it's Fannie Mae or Freddie Mac or another investor (ie Deutchebank, etc.) then you may not have a chance for the principal reduction.

Worse case, if you decide to do a short sale and are in an HOA just make sure to pay the HOA dues because many HOAs are foreclosing and you will have little control over the process.

All the best,
Alma
Alma Rose Kee
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Sun Apr 15, 2012
You would need to check with your lender and see how far into the foreclosure process you're in and if they will agree to a short sale. You don't have to live in the home while the process is going on but the lender may tell you it would be better if you stayed while this process moves along. Keep in mind if your bank agrees to do a short sale after you go through the process at the end they may ask you to come to the table and sign a note to pay back some of the money. It could be anywhere from 10-50k depending on the deficit on your home. This is not set in stone but it does happen in more than half of the cases that I have seen. I hope this helps and if you decide to short sale I live in Land O Lakes and can help you through the process by listing your home.
Thanks for your inquiry.
0 votes Thank Flag Link Sun Apr 15, 2012
We did find an agent, but we weren't very happy with her so we didn't finalize any paperwork. My parents are disabled and we have been looking for a place to move into with them, but we are not in a hurry to move right away, but if we find a big enough house for all of us, I would like to go ahead and move. We have only received the first court papers a few months ago, but not much since. We have had the same servicer, SPS, since we bought the house in 2000 it was sold to them a few months after. My girlfriend had to stop working because her school went to full time last year and I had surgery which is why we were behind in the first place. She will be graduating in Sept.and can start working again, but we owe just too much in court fees and such. We owe about $80,000 and the bank had agreed to take $40,000 the last time we did a short-sale. I may be giving you call! I'm in Port Richey, not sure how the info on here said Spring Hill.
Flag Sun Apr 15, 2012
You don't have to move. The short sale process can take months and your agent can usually control the time frame to fit your circumstances. I put a link below to the short sale process for sellers. Hope it helps!

Chas Burdick - Burdick International Realty
813-279-2030
0 votes Thank Flag Link Sat Apr 14, 2012
Stay or leave - it's your choice. If your listing says "by appointment only", then don't let people see it if they just show up. But you can always move out...
0 votes Thank Flag Link Sat Apr 14, 2012
Bobbybear,
You can do whatever you think is best for your family. The advantage of staying for many people is that they save the money they may be paying in rent or mortgage. The bank may require some payment to forestall foreclosure long enough to allow the short sale process to take place.
My suggestion would be to find an experienced agent to handle the short sale. Price it at a point that will generate offers quickly and still stand a chance of getting approved. You will shorten up the "showing" phase and get to wait out the approval time.
Going through foreclosure is the most damaging option to your credit and will take the longest to recover from.
0 votes Thank Flag Link Sat Apr 14, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer