Home Buying in 94015>Question Details

Bellaicenhow…, Home Buyer in Eagle, CO

My home in CA has been in escrow since May 2012 for short sale. Chase finally accepted an offer of 455K (loss of 400K). Now the buyers want to reduce

Asked by Bellaicenhower, Eagle, CO Mon Oct 8, 2012

the offer to 367K due to an appraisal. I am afraid this will drag into 2013, and I will have to pay the loss to the bank, due to the law change. Should I forgo the SS and let it foreclose. I have already filed bankruptcy, my credit is shot anyway. I moved my family to CO, but I could have been leasing the house.

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Fiona Santos’ answer
Your Realtor can submit the appraisal report to the negotiator to show the value. Chase will either reject it due to the high loss or they will counter the buyers, meaning Chase might be willing to accept $400k instead and the buyers can consider increasing to $380k to meet halfway. It worked for me before when I submitted the appraisal report, the short sale lender which also happened to be Chase accepted the lower appraised value. But in your case, since the accepted value and the appraised value are so far off and the buyers are really not willing to increase the purchase price, just put it back on the market. Daly City has been showing a lot of improvement in activity, I'm sure you'll get a new buyer fast especially you already have the approved price. Even though your credit is shot, it's still better for you in the long run to do a short sale than a foreclosure. Best of luck!

Fiona Santos
Realtor
LGO Investments, Inc.
Mobile: (415) 513-8876
DRE #: 01713147
0 votes Thank Flag Link Mon Oct 8, 2012
Yes it was my primary until we moved to CO. Thank you so much. BTW a Trulia Realtor helped me find a rental property here. ;-)
Flag Mon Oct 8, 2012
Yes, you are exempt from paying the deficiency loss especially if it was your primary residence before. Was it?
Flag Mon Oct 8, 2012
Thank you. Since my property has been listed as a short sale since July 2011, I am protected from the 1099 tax law change, in your best opinion, in case I have to put it back on the market?
Flag Mon Oct 8, 2012
"due to law change"; what law change?

The law, presently, excludes SHORTSALES from Deficiency Judgements;
So if you keep it LISTED as a Shortsale, you should not only be Okay, but the Bank will probably draw it out for another year.
You can make whatever you deem as far as leasing it out.

But, it would also seem, that you are not listening to the "advisors" you already have.
0 votes Thank Flag Link Mon Oct 8, 2012
My understanding is the law that disregards a 1099 is void in 2013; therefore, I will be liable for the bank's loss in purchase price. I don't have an advisor, unless, you mean my broker? Of course he wants to stay the course for the lower offer/submission to the bank, but I am afraid the bank will refuse it, and I am stuck holding the bag...debt?
Flag Mon Oct 8, 2012
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