Foreclosure in 33322>Question Details

Nmbound, Home Seller in 33322

had to move for job relocation. Option was stay and be out of work. What can we do with the house? Its underwater

Asked by Nmbound, 33322 Mon Mar 7, 2011

Our job relocation was not an option. We have renters in the house but we receive far less than our mortgage payment. Because of the job, we will not be returning to the house.

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21
Your job relocation is one way "hardship" is measured by banks in considering approval of a short sale. However, despite the opinions of others here, short sale may not be your best option. First, few if any lenders are approving loan modifications - that is plain wrong. Second, while banks are willing to work thru short sales, each case is unique to itself. If you have a first and second deed against the property, that can be a problem as second note holders rarely get paid any money in a short sale and therefore can hold things up. Next if you've got hoa dues, that can get expensive, especially if a bank takes a year or more to get to your file. It also depends "how under water" your property is - if you've got 500k in loans on a place now worth 200k and the bank has sold their note to an investor, that investor may not yet be willing to take the loss. Or is your loan the original loan or did you refi and pull money out? This can cause tax implications for you if you refi'd. Find an atty and/or cpa then a great realtor with short sale experience and together, review your situation. You might find that a deed in lieu of keys or foreclosure is your best option. Each case is unique so be sure to get answers from professionals you trust and are looking at your specific situation. Be informed before you make your decision, it could be a life changer. Best of luck!!!
1 vote Thank Flag Link Thu Apr 7, 2011
Be VERY careful about working with an investor middleman that may attempt to get you involved in mortgage fraud.
have your attorney review their proposal. That will stop many scammers in their tracks.
1 vote Thank Flag Link Tue Mar 15, 2011
The FTC recently enacted a policy that's meant to protect buyers and sellers from unscrupulous/incompetent investors, agents, and/or other pros.

Although hammers work great with nails, they're not ideal for working with screws. Similarly, a short sale is another hammer: it works well for certain situations and not so well for others. Your situation is unique, so you should treat it that way. You might want to consult with a real-estate attorney (ideally one who's also an investor, and who specializes in creative transactions). You also might want to consult with a CPA (or tax attorney) to discuss the potential financial outcomes, and to implement a plan.

Additionally, some investors are high income earners who need to acquire 1 or more assets with negative equity and/or cash-flow to enable them to write off a portion of their income. So one of them might be willing to buy your property as-is with a small (or no) discount.

Plenty of other options also exist. The point is the more flexible and creative you are, the more likely you'll transact a deal with the optimal benefits.
1 vote Thank Flag Link Wed Mar 9, 2011
Be VERY careful about working with an investor middleman that may attempt to get you involved in mortgage fraud. What some "investors" will do is pay you a small amount of money and then they will get ownership of your house and you will still be responsible for the mortgage and the liability. They will then be able to collect the rents and may drag out the process for as long as possible to maximize their rental income. Then they submit fraudulent repair estimates to the underlying lender(s) to attempt to buy your house significantly below market value. They will then flip the property to the next buyer.

So I would tell any offers of an "investor" to help rescue you that you will have your attorney review their proposal. That will stop many scammers in their tracks.

Good luck and it's a shame our elected and paid officials didn't have the ability to foresee this crash and it's even more nauseating that the same idiots that have now plunged our country into a depression are still benefiting greatly! These schemers and incompetent/complicit officials should have ALL immediately lost their jobs and many should spend time in jail and also have their assets seized so they can live on the same level as their victims!

I'm done ranting!
1 vote Thank Flag Link Tue Mar 8, 2011
A short-sale isn't your only option. You could work out something creative with your tenant, or an investor in your area. You also have other options to offset your negative cash-flow.
1 vote Thank Flag Link Tue Mar 8, 2011
There are several options that may be available to you depending on whether or not you prefer to keep the home. Of course we would need to discuss further to get an overall picture of your objectives and answer some very important questions about your home. Marketing strategies from renting your home to customers who will pay the targeted price needed to cover monthly mortgage amount to possibly conducting a short sale are available options. If interested give us a call or email to discuss further. (786) 704-
8482. Email us at Info@OnePlaceOpenHouse.com
1 vote Thank Flag Link Tue Mar 8, 2011
Hi Nmbound,

One of your options would be to do a short sale on the house. If you had to move for employment reasons and the revenue from the rent is not sufficient to pay the mortgage this may qualify as the "hardship" for the short sale.

Other options would be to contact the bank to see if you can do a loan modification, or a deed in lieu of foreclosure. The other option would be to just let it foreclose.

If you would like more information on short sales, or would like to try to sell the house as a short sale, please send me an email or give me a call.

Nadine Mauro
Highlight Realty
954-464-5664
NadineMauroRE@yahoo.com
http://www.floridahouseseller.com/
1 vote Thank Flag Link Mon Mar 7, 2011
Nmbound,

Moving for a job relocation could make you eligable for doing a short sale. It is a hardship. You should talk with a realtor in your area who has the SFR certificatation or the CDPE. Those agents have advanced knowledge in working with distressed properties. (and distressed owners too).

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Tue Mar 15, 2011
Hi Nmbound,

In my profrosseional experience here are some options for you:

Loan Modification - Most Lenders will consider doing a loan modifcation on your current loan. You have met the hardship qualification. You do not always have to be residing at your property in order to qualify. If you are behind in your payments they will wrap them back into your mortgage and your monthly mortgage payment will be reduced. This would include any back taxes and insurance. If you'd like to see if you qualify please log your email address at: http://www.nfrai.org. You may click on the link below as well.

In my opinion this may be your best option as you have renters living there now. If you do a short sale the property will need to be shown. Is your home in pristine shape in a hot location? Or is it in a shabby neighborhood and home is in need of repairs? I dont like asking those hard questions yet they have to be answered when your making decisions like these. if your home is the latter you most likely will have a positive NPV test result and the Lender will be eager to assist you in modifying your loan.

If your home is the former (pristine in a primo neighborhood) then you may be successful in short selling it. Certainly the NPV testing could a negative result meaning your Lender would not have incentive to modify the loan. In that case they may not be open minded to short selling the home. They may make more money forclosing on the property and selling it themselves. If you are given the option to short sell keep in mind that the amount you owe compared to amount of the sale will be a huge factor in your ultimate liability. Remember, late fees, closing costs, etc. add up and up and what you have left over after all is said and done could be a large debt to to your Lender in addition to owing still on the preoperty taxes! A deed in lieu may be another option for you and perhaps the best if your eager to be "free" of the property. You would then contact your Lender and see if they will allow you to do that. This means you would simply give the house back. Not everyone is eligible. But if you are and you owe more than the home is worth this would be an attractive alternative. Again, you may owe back taxes but your debt would be cleared and you wouldnt be left with any liability to the Lender.

If your home is in Florida and you receive a "Twenty Day Notice to Respond" the State of Florida has provisional protection from foreclosure if you respond within that time period and prove that you have taken measures to work out your loan situation with your Lender.

Please feel free to contact me if you have any further questions. I do have many resources to assist you.

Best Always,

Gina Guarnieri, LLO
866-676-8207
Web Reference: http://www.nfrai.org
0 votes Thank Flag Link Tue Mar 8, 2011
Hello,

It sounds to me like the most viable option would be a short sale. I work with a group of cash investors that may buy your home. We can also in most cases relieve you of any deficiency judgement that the bank may come after you for. I would be happy to provide you with FREE advice at your convenience. I look forward to hearing from you soon ....

Sincerely,


Darren Nelson
24/7 REALTOR®
Short Sale Expert
RAGFL, FAR, NAR
Coral Shores Realty
1119 E Sunrise Blvd.
Fort Lauderdale, FL 33304
Office: (954) 568-9698 x255
Cell: (954) 881-8800
Fax: (954) 944-3178
Email: dnelson@CoralShoresRealty.com
Website: http://www.CoralShoresRealty.com
MLS Search: http://FREE.SouthFloridaMLS.com
eNewsletter: http://CoralShoresRealty.housingtrendsenewsletter.com
0 votes Thank Flag Link Tue Mar 8, 2011
my advice is contact your lender and discuss your relocation and the financial hardship that you are dealing with, many people have been able to get a "hardship" or "short sale" approval in a reasonable matter of time. You may also want to check what similar homes have been selling for so you know what a fair market value will be. Then go ahead and list it for sale! Good luck.
0 votes Thank Flag Link Tue Mar 8, 2011
Good morning Nmbound, If your desire is to sell your home, you would be able to sell your home as a Short Sale as your relocation created a hardship. I've helped many homeowners who had a job relocation and their Lenders agreed to sell their home as a Short Sale. As a local Plantation Realtor, I'd be glad to help you should you desire to sell your home. Please feel free to call me at 954-464-1100 or email me at lynnp@ImagineYourHouse.com

To find out more about me please review my websites and blogs: http://www.ImagineYourHouse.com, http://www.ActiveRain.com/blogs/LynnPineda, http://www.MyShortSaleHome.com

I wish you the best.
Regards,
Lynn Pineda
0 votes Thank Flag Link Tue Mar 8, 2011
You can do a short sale. We can help you. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Tue Mar 8, 2011
"had to move for job relocation" may very well be a hardship and hardship is what a lender is looking for in deciding whether to approve a short sale. Contact me to discuss more.
Rick Scrabis
954 232 0300
scrabis.r@ewm.com
0 votes Thank Flag Link Tue Mar 8, 2011
I am a real estate broker who is a Certified Distressed Property Expert (CDPE) and have the education and experience to work with Lenders, Sellers & Buyers to negotiate short sales, and follow through to completion. If you would like more information, I am available to speak with you. Where is your property? Sylvia Wells-Cullins, Realtor, GRI, CDPE swc.realestate@yahoo.com
0 votes Thank Flag Link Tue Mar 8, 2011
Call your lender. Your job relocation could very well give you a "Hardship" that would make you qualify for a short sale. Start with your lender, then get a well qualified local realtor to help you.

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Tue Mar 8, 2011
Dear NM Bound,

Do not just "let it foreclose" because in Florida we are a "recourse" state. What that means is the lender can get a deficiency judgement and go after you for 100% of their loss including late fees, attorney fees, court costs, etc.

So the other advise to seek a loan modification or worse case is to do a Short Sale, pre foreclosure sale. If you do a Deed in Lieu it will take longer for you to qualify to buy a house again. A Short Sale (if you stay current on your payments) may allow you to immediately purchase another home. If you are not able to keep up the payments then a Short Sale may allow you to get a mortgage in 2 years.

Good luck with your new job.

Alma

PS Just realized you may have another problem now that you have "converted" your primary residence into a rental property... If you are "forgiven" any amount of your mortgage if your short sale or do a deed in lieu, the lender will send a 1099 to the IRS and you may have to include that as ordinary income. If the house is your primary residence you may qualify for an exemption but this isn't available to investment property. You need legal and tax advice before signing an offer.
0 votes Thank Flag Link Tue Mar 8, 2011
Hello,

I recommend calling your bank/lender to find out, whether you qualify for a Loan Modification for an INVESTMENT PROPERTY.

If not, apply for a SHORT SALE. Usually all banks/lenders have their Short Sale package (list with all necessary documents needed) available online. If you can afford it, I highly recommend making all your mortgage payments until your house is sold. That would do less damage to your credit score and you would also qualify for a new mortgage loan in the future sooner. Keep in mind there is a "waiting period" before you can get approved for a loan due to the Short Sale.

Inform you tenant, that you are putting the house up for sale and ask HIM, whether he would be interested in purchasing it.

Last but not least, get a knowledgeable Realtor regarding the Short Sale process at no cost to you.

I wish you the best.

Regards,
Beate Rodriguez
Loan Originator
0 votes Thank Flag Link Tue Mar 8, 2011
Hi there:

It's fantastic that you have a job in this economy and you want to do the right thing with your home. Having it rented out is a step in the right direction. Have you contacted your bank or an attorney regarding the short sale process? After you do this and make the decision to sell your home, make sure you enlist the services of a qualified short sale real estate professional, preferably one who has been certified either as a SFR or CDPE. I would be happy to assist you in anyway or answer any additional questions you might have. Thank you.

Best regards,

Amy Vulpis
954.591.4280

http://www.amyvulpis.com

Better Homes & Gardens Real Estate Fl 1st
2700 E. Oakland Park Blvd
Ft. Lauderdale, FL 33308
Web Reference: http://www.amyvulpis.com
0 votes Thank Flag Link Tue Mar 8, 2011
Hello,

Your best bet is to Short Sale the home. You should be able to get short sale approval from your lender as your hardship is your required job move. Please search Trulia for a Listing Agent in your area and hire them to assist you with the short sale.
Web Reference: http://www.buyvegasnow.com
0 votes Thank Flag Link Mon Mar 7, 2011
Just put into market and sell it. It may be a short sale but you still have a job. If you can come up with the difference you don't have to short sale but I have a feeling that will be short sale.

I have done many short sales so please let me know the address so I can give you current market value of the house.

Please call me if you have any questions or like to put the house on sale.

Sedat Celik, Realtor

sedat@celiks.com

954-661-2565
954-302-8388 (fax)

http://www.easternbroward.com
0 votes Thank Flag Link Mon Mar 7, 2011
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