Home Selling in 08226>Question Details

Damon Bready, Real Estate Pro in 08226

Is it possible to qualify for a Short Sale if you have savings?

Asked by Damon Bready, 08226 Tue Apr 5, 2011

Let's say Sally and Dan Seller have $75,000 saved and are upside down in their mortgage by over $100,000. Sally and Dan have been scratching just enough together each month and have been okay however in October their ARM adjusts and now they will have to pay principal which will eventually eat up all of their savings. They are unable to re-finance due to the non equity. What would you suggest?

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I would suggest they talk with a lender regarding their qualifications to refinance. I assume that Sally and Dan would need 20-25% equity. They would need to prove hardship and with $75,000 in savings I would see that they were able to save that because perhaps they were paying the minimum of negative amortization or interest only. If I were the lender I would think, hmmm, why should I eat the lose while you benefited.

I would advise them to seek the following council
1) Talk with a Lender
2) Talk with their own lender regarding Loan Modification
3) Talk with financial tax advisor
4) Talk with a Real Estate Attorney

With that information, they should be able to make an educated decision for themselves.

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0 votes Thank Flag Link Tue Apr 5, 2011
Coming from a Broker! You know better! If you have assets you do not qualify for a short sale, ask your local attorney for full details!
0 votes Thank Flag Link Sat May 21, 2011
Hey Damon,

I'm sure you got the answer on this one but I believe retirement savings is exempt.
0 votes Thank Flag Link Sat May 21, 2011
I think the lender will want the money if you have a way (savings) of paying it. There are many factors that must be considered before the bank will agree to taking a loss. If you would like to discuss selling options, please give me a call at 609-972-3628 Thank you Dave Schick
0 votes Thank Flag Link Tue Apr 5, 2011
Having done numerous short sales but--not being a mortgage rep/professional, what I can tell you is that its up to the individuals bank. After going through the motions with my clients even from a pre-listing standpoint, so that I can be there to guide them & work hand in hand with the banks should they need me, it also gave us an upper hand when you get to talk to one of the customer service reps that get assigned to you, you build a repore & they tend to help you more. Stay with it - Good Luck!
0 votes Thank Flag Link Tue Apr 5, 2011
Hey Damon,

Talk to Bob, I think Mike Mitchell from the Wildwood office had a similar deal about a year ago. I know it can be done. Maybe you'll get the best direction from someone who's done it successfully.

Good Luck! Bo
0 votes Thank Flag Link Tue Apr 5, 2011
Hi, Damon.

Since my background is in mortgages, I would say that they have a few options:

1) Stop making payments and try to force a short sale.
2) Negotiate new terms on their existing mortgage with the bank (loan modification).
3) Rent out the property to someone else (until things turn around) and find another place to live (either rent or buy).

There are pros/cons to all of them, it just depends what your clients are willing to sacrifice. Best of luck to you (and them)!

Best,
Tim

Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
http://www.phillyurbanliving.com

tgarrity@brownmckinney.com Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-318-7004 Fax
0 votes Thank Flag Link Tue Apr 5, 2011
Yes, a seller with savings can still short sale their property. You just need an experienced negotiator. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss this 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 Apr 5, 2011
The bank will review all of that information ( I had just that scenario with my clients having a Savings, but not enough to cover their mrtg/taxes/insur. expenses plus cost of living, so they applied for the short sale package
and after about 60 days they were approved for the short sale, unfortunately the house never sold after 1 yr & they
ended up losing it to the bank anyways. But they should at least try , they have nothing to lose at this point -do they really?. Maybe a family member can move in with them to help them catch up or put them on the mortgage? that was a couple of the suggestions the bank mentioned as well.

Best of luck!
0 votes Thank Flag Link Tue Apr 5, 2011
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