Home Selling in Los Angeles>Question Details

George Macgr…, Home Seller in Los Angeles, CA

I am thinking about doing a short sale because i got laid off a few month ago

Asked by George Macgrae, Los Angeles, CA Mon Feb 8, 2010

and now i am totally behind with the mortgage and HOA payments and other things.
I have an 8 year old car that i paid off and it's mine. Can the mortgage company take
that car? It's worth a few thousand dollars and i am about 8000 behind in mortgage.
I don't have any credit cards anymore. The only thing i own is that car.

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Answers

16
You have the perfect background for a short sale. The first thing that you should do is get in touch with a real estate professional with short sale experience and start your process as soon as possible.
Do not worry about your car. They will not take away from you.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
1 vote Thank Flag Link Sun Sep 30, 2012
VERY GOOD QUESTION. YOU SHOULD NOT WORRY ABOUT YOUR MORTGAGE COMPANY SEIZING YOUR CAR. IV NEVER IN MY EXPERIENCE SEEN ANYTHING LIKE THAT. REGARDING WANTING TO SELL MY BEST ADVICE IS TO CONTACT A REALTOR WHO CAN GUIDE YOU AND LET YOU KNOW YOUR OPTIONS. ONE THING TO CONSIDER IS IF IT WILL BE CONVENIENT. IF YOU WILL BE PAYING MORE IF YOU GO RENT THEN IT MAY BE YOUR BEST INTEREST TO HOLD ON TO YOUR PROPERY AND TRY TO BECOME CURRENT. YOU CAN FEEL FREE TO EMAIL ME IF YOU HAVE ANY QUESTIONS AT AMADORGP@YAHOO.COM OR YOU CAN REACH ME DIRECT 714-7579164. I WOULD BE MORE THAN HAPPY TO GIVE YOU ADVICE. WISH YOU BEST OF LUCK.
0 votes Thank Flag Link Fri Nov 9, 2012
Short selling might be your best bet. But before you consider this, do you want to sell? You can ask for a temporary deferment to work with you while you look for a job. If you don't find a job soon, and are able to resume payments, a short sale might be the best option. Depending on which bank you are working with, there are also, currently, some "cash for keys" moving incentives where the bank will pay you some money to cooperate with a short sale that will allow you to at least put a deposit down somewhere and get yourself set up in a rental. These programs change, and come up daily. If you do consider a short sale, then get a real short sale expert (everyone says they are, most aren't) …. a full time Realtor who regularly attends the short sale updates and makes a point of staying on top of the daily changes in the short sale world….someone who knows how to get your best deal from your bank, and make the process no more painful that it needs to be.

There are lots of real estate agents on here…Trulia… check out their blogs, answers and what they have to say, and pick someone that you feel comfortable with…Interview a few at least. I'd suggest not going with the next agent who sends you a "short sale expert" post card or knocks on your door, UNLESS you can also Google them and find some good references, blogs, testimonials to support what they tell you.

I'm sorry for what you're going through - you're not alone,
0 votes Thank Flag Link Mon Oct 8, 2012
You may talk to a real estate agent to see your option. Your real estate agent will find your best choice.
0 votes Thank Flag Link Sun Sep 30, 2012
George,

You should contact a local agent ASAP and get a request for short sale approval package submitted to your lender.

Please do not wait until you get furter behind. Being laid off is a true hardship.

Keep in mind the bank will not pay past due HOA fees, so you will have to ask the buyer to pay them if you are not able to do so.

The longer you wait the further behind you will become. Please act ASAP!!!!

Best of Luck to YOu,

Kawain Payne, Realtor®
0 votes Thank Flag Link Sun Sep 30, 2012
First of all I don't think the bank will take the car from you, that is not an option.
I've done many short sales before and never heard about something like that.
Second you definitely need to short sale the house and just make sure the HOA will not foreclose on you before you do the short sale. They can do it behind your back so be careful.

If you want to stay at your home there are some ways to do it.
Read below this article abut short selling your home and renting it back until able to re purchase it. This is a great program that can help you these days.

Good luck.
0 votes Thank Flag Link Sat Sep 29, 2012
Hi George

Sorry to hear about your financial situation. Looking at the answers posted from the other real estate professionals, you have some great suggestions.

The mortgage company will need to see a list of all your assets. Since you own your car, it will need to be listed as well.

1) I would strongly recommend contacting an attorney and CPA/Professional tax preparer to understand all the legal and tax consequences of a short sale, foreclosure, or deed-in-lieu.

2) Are you aware of the "Making Home Affordable" federal program. There are several options you may qualify for that will help you KEEP YOUR HOME and avoid a foreclosure or short sale.

Check out my website for links to the official website for more information and apply for help.
http://www.allhomesbymonica.com/FederalPrograms

3) Also, contact a Real Estate professional preferrably one who is a Certified Short Sale and Foreclosure specialist (SFR). They can help you with all your questions, help you apply for the federal programs to KEEP YOUR HOME or proceed with the short sale.


Good Luck to you.

http://www.AllHomesByMonica.com

Monica Hernandez - REALTOR(R), SFR
Century 21 Amber Realty
23705 Crenshaw Blvd Suite 100
Torrance, CA 90505
310-293-3335 direct
dre lic# 01239118
0 votes Thank Flag Link Wed Mar 24, 2010
Hi George;
The banking regulations vary based on whether a loan is a first trust deed purchase money loan, a second trust deed purchase money loan, a home equity loan, or a refinance. In this forum, it is impossible to know your situation well enough, and as Realtors, we cannot give legal or tax advice.
In a short sale, the bank will want a record of all of your assets, including retirement accounts and automobiles. In making their offer, all assets will be taken into account. I recently had a major lender consider a Mercedes as an includable asset during a short sale, for purposes of valuing the assets of the borrowers.
My best advice is to consult your attorney and accountant. Then hire a Realtor who is CERTIFIED SHORT SALE PROFESSIONAL. We offer a free 1 hour consultation with you and with your accountant and / or attorney, charge no fees to you, and all of our fees for your representation are paid by the bank. Call us.
Deborah Bremner, SFR, CSP
REALTOR, 00588885
Certified Short Sale Professional
Certified, Short Sale Foreclosure Resource
Certified Home Retention Specialist
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/blog
0 votes Thank Flag Link Fri Mar 19, 2010
Hello,
It depends if you took out the car as a part of your home equity fund and the bank has it in their books as a collateral, if this is the case watch out. This has happened to one of my clients 3 years ago. They did take her car. She was doing a Short Sale.
If you are $8000 behind on payments contact your lender. Fore more info on short sales go to my wesite
http://www.pebblesingha.com
Pebble Singha
Certified Distressed Property Expert.
Web Reference: http://www.pebblesingha.com
0 votes Thank Flag Link Sat Mar 13, 2010
The mortgage company cannot take anything but the home away from you as long as this is your principal residence in California. From what you have said so far, I am reasonably certain you are looking at a non-recourse loan, that means the only remedy the bank has is to foreclose on your loan (and of course, report negatives on your credit report). They cannot "force" you to sell anything else, nor to file bankruptcy. And please don't let them bully you!

It is important to sit down with a foreclosure specialist - someone like myself, or any number of the fine agents represented here, who are able and willing to help you sort out the pros and cons of various paths of action that you could choose right now. You'll want to do this sooner than later - HOWEVER - please don't feel compelled to make a quick and uncomfortable decision in 30 seconds or less! I recently "rescued" a seller who felt pressured to sign something she clearly didn't understand when a fast talking agent put some papers in front of her. She thought she was signing for him to have permission to make inquiries on her behalf, and looking into the possibility of selling - BUT she did not realize she was committing to the listing. She told him she decided not to go forward with him, and 2 weeks later, he put her home on the MLS. She had signed the listing agreement and was sorry she did. She never had a chance to check him out. He had over 50 "cancelled" short sales and zero closed sales to his credit. Most of them ended in foreclosure. I contacted his broker, and we worked out a deal that made sense for all concerned, but legally, he had the right to tie up the listing - even if it meant foreclosure for her!


Good Luck!

Jeri Creson, Broker
(818) 448-1298
jericreson@yahoo.com
0 votes Thank Flag Link Tue Feb 16, 2010
George,
You have recieved some good advice below. The bank will not take the car. The will want to talk with you or your realtor about the situation. Keeping in constant communication with the bank is critical when falling behind on your mortgage. A short sale is an option that may work for you. Sit down with an experienced short sale agent to discuss all of your options and the short sale process, pros and cons, before you make a descision. Let me know if you would like to talk. I'd love to help.
Web Reference: http://www.donjacks.com
0 votes Thank Flag Link Fri Feb 12, 2010
No, the bank can't take the car but if you are successful in your "short sale" the bank can come back on you for a "deficiency judgement" that is an action to reclaim the lost money resulting from your short sale.

Our recommendation is to seek the advice of an attorney prior to making any decision.

Best of luck.

The Eckler Team
0 votes Thank Flag Link Tue Feb 9, 2010
George: So sorry to hear of your difficulties. Your car is an asset however, it is not Real Property so it cannot be repossessed or taken by your lender.

You do want to seek out the advice of a tax professional regarding your deficiency amount and if it will be reported as taxable or not. Also seek the advice of a Real Estate Attorney. There are many that will give you a free consultation.

Plan and prepare wisely so that the decisions you make now will have the least affect on your future.

*****
***
*
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Mon Feb 8, 2010
George
They are not coming after your car, I have NOT seen that happen one time. You are in the cicumstances that short sales were made for. I am sorry you are here, it may be a long process but in the end.... I think you will have a big weight off your shoulders.

I wish you well and peace of mind!!!
0 votes Thank Flag Link Mon Feb 8, 2010
No, they will not take your car--in a short sale the bank(s) has to agree to accept less than what is owed--when selling-- you can accept any offer you wish, but the bank decides to accept, reject or counter offer--Call a few realty offices, interview some agents and use the services of the agent you like best--short sales are by no means fast sales and can get complicated.
0 votes Thank Flag Link Mon Feb 8, 2010
In order to successfully short sale your home you will need to find an experienced Realtor. You will also want an experienced real estate attorney providing legal advice. That said, it is unlikely that the bank will be able to get anything except the payoff from the sale of the home. Every situation is different, but you should be able to sell the home without any money out of your pocket, as it is assumed you don't have any because you are losing the home.
Web Reference: http://mccolly.com/sroake
0 votes Thank Flag Link Mon Feb 8, 2010
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