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.
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!
8482. Email us at Info@OnePlaceOpenHouse.com
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.
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
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.
Gina Guarnieri, LLO
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 ....
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
MLS Search: http://FREE.SouthFloridaMLS.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.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
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.
954 232 0300
Debbie Albert, PA
Keller Williams of the Treasure Coast
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.
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.
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.
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.
Better Homes & Gardens Real Estate Fl 1st
2700 E. Oakland Park Blvd
Ft. Lauderdale, FL 33308
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.
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