Speak to a Realtor that knows short sales, get the property listed and get it donme. The sooner the better!
Tell your friend to contact a SFR certified Realtor to help get the short sale moving along !
Orange Key Realty
SFR Certified in Short Sale and Foreclosures
Your post has nothing to do with this person other then being related to it by short sale. I am referring to your use of this term as made up as you seem all excited about it.. and just attaching to people posting, some kind of.. I know about this, I know about this, look at me post.
So why bother?
I read the article.. Did you make up this term "strategic default"? I do not understand what the point is here with your "article" on that site... There are so many people in trouble these days and and short sales and foreclosures are a default. Period. Sure there are some people that look to sell short BEFORE they are in trouble, thatâ€™s the point to what they are doing, saying , oh boy I am in trouble in three to four months.. and they ask for assistance with the bank in either a modification or, if already in trouble, a short sale. Help BEFORE the bank forecloses on them.
Your advertising below makes it seems as thought this is overall is a bad thing, tearing a hole in the economy.. But your article reads that you are happy about it, for it and then against it.
So really, what is your point?
Strategic default has been occurring for almost 3 years now. It's a loop hole for those who first purchased a home down the street or in another area, and short sale the home they are living in now. Getting a home similar or better than what they have now for much less and for that purpose only. To profit!
I had a client with PNC bank who brought this to my attention 3 years go. It is prevalent and now the gov't is on to them and will prosecute if they see the signs. No longer can you look for a short sale just because your home is underwater... The hardship you have incurred must exactly be that "a hardship" causing unaffordability of the home. Fannie Mae instituted greater controls and put lots of power in the banks to look for such fraud. Fraud is what they are calling it too.
I did not read Jerry's blog but I wouldn't think Strategic Default relates to his question here . Segafour appears to be looking for us to answer what are his friend's options now that the short sale has been approved.
My answer don;t move until you are absolutely sure there is a settlement date. Of course it is the inevitable that you will have to leave the home, just be prepared. Vacating the home could cause the bank to take action to foreclose, lock the house, possibly stall or negate the short sale in process. therefore causing you more credit harm in the future. I would negotiate a settlement before leaving and make a little money. a term most of us heard of "cash for keys"
Weichert Realtors Turnersville
If buyer and wondering what happens to home, will be up to the bank and how close the actual sheriff sale is. You could wait around but probably not worth it. Most banks will not put the house up for sale until they clear all title work and if it is Fannie Mae a clearance must come from them also.
If Seller is your friend. This happens a lot. If I were the negotiator or realtor I would have asked for some money. Still can. There is money on the table they can provide. Personally I would wait the short sale out, prepare to move to another place and when the actual sale takes place you are home free Accomplished the short sale... Now work on rebuilding credit and their life.
I have lots of useful scenarios and information on my website.
Weichert Realtors Turnersville
I believe you mean the owner (your friend), has stopped paying the mortgage and walked away from the property even though a short sale was approved. Is that correct?
Is the house on the market? Is there a buyer with a contract? Are you questioning whether the owner will be responsible for unpaid mortgage payments, unpaid utilities/taxes/sewer bills etc?
Too many questions to answer here, even in general statements. Plus none of us Realtors can give you legal advice, just information on what we have experienced during a short sale transaction. Every short sale has differences based on specifics of each case.
Best advice is have your friend contact an attorney who has handled short sales (if he/she doesn't already have one) and let the attorney counsel on what to expect based on the individual case.
I would suggest reading up on the subject at makinghomesaffordable.gov
Your friend should speak with a Realtor who knows how to navigate the short sale process, chances are they will also have a good real estate attorney who can help coordinate and negotiate with the bank on your friends behalf.
Good luck, help is out there!
Like John said, it might be a good idea to go to realtor.org and seek out a SFR certified Realtor, they have taken special classes to become familiar with the short sale and foreclosure processes.
Additionally, if s/he hasn't already found another place, then the investor(s) s/he opts to work with could also help to place him/her into another property (perhaps via a rent-to-own deal). The point is that s/he has other options.
You should contact an attorney for proper legal advice and my opinion which follows is not intended as legal advice, nor should it be construed by you or anyone else as legal advice. But, in my humble opinion and in experience, If the bank has approved the shortsale and now, (given your last post) there is no buyer, allow the Realtor to continue to market the property to get a new buyer. If your friend walks away and there is no short sale to offset what is owed to the bank, the bank may have the right to sue your friend for the amount of the mortgage, late fees, penalties, legal fees and escrow (taxes,insurance) amounts that remain unpaid after any eventual sale (meaning if they take it back and sell it). Your friend's best hope is a bank-approved shortsale which should include a clause that they will not pursue your friend in court for a deficiency judgment. Tell your friend to be patient.
I hope you find this information helpful. If so please mark it with a thumbs up.
Kimberly Thomas, Broker-Associate
Brown & Pope Realtors, LLC
Voorhees, NJ 08043
Thanks for your questions.
If the prospective buyer has walked away or thinking about it after the bank has approved the short sale try to find out the actual reason for deciding not to purchase the home. Did he/she just get cold feet and need some assurances or is it their mortgage company having a problem with his/her paperwork?
There maybe things to be done. If by any chance the buyer still does not want the house any longer then your Realtor can put the house on the market again and advertise it that it got approval and waiting for the right buyer.
Good luck in the sale of your home.