Home Selling in Pacifica>Question Details

B-ball, Home Seller in Pacifica, CA

My townhome 2Bd 1.5Ba was originally bought for 386,000 but is now worth 300,000. We need to move into a larger house. How do I get rid of my TH?

Asked by B-ball, Pacifica, CA Wed Jul 13, 2011

My townhome 2Bd 1.5Ba was originally bought for 386,000 but is now worth 300,000. We need to move into a larger house. How do I get rid of my TH?
What options are there? Our loan was one of the "interest only" loans that were sold at the height of the market and we're now riding the libor wave. My wife and I are desperate to move out of our townhome. We have no idea what options there are and would really appreciate any advice.

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Many people will tell you that you can dump it on the Bank and they will justify it by saying that the banks got us into this mess.....

The fact of the matter is that everyone helped and the Banks are not going to just sit there and accept everything like they had a target on their backs.

California is a Non-Recourse State: What this means is that the State has protected us by putting up a thin shield against Deficiency Judgements. I don't know if this has been tested in the Courts yet, but I would predict that we are going to hear a lot more about this in the future.

Right now, these are your choices:
1.) Keep the Townhouse, live in it and ride it out.
2.) Keep the Townhouse, rent it out, accept the negative cash flow for 1-3 years and ride it out.
3.) Do a shortsale; you will have to submit a letter to your lender telling them why you need to do the shortsale; just being Upside-Down is not enough; you need to demonstrate financial distress amd/or insolvancy. If you try to do this, and you have a vacation home, three apartment complexes, $250,000 in the bank and a job that pays $300,000 a year, you might have a tough sell.
4.) You can let it go to foreclosure; force their hand: This will take a year or more to accomplish, you will have to stop paying your mortgage and after three months, start calling them. You will ruin your credit and you are in for a year from h--l.
5.) Do a Voluntary Foreclosure, that is; give them a Deed-in-lieu, and you can walk away right now. This won't be as bad for you as the full foreclosure, but it will still affect your credit.
6.) If you do the SS or the Foreclosure, it will 2-3 years until you can buy something else, assuming that you can reconstruct your credit.

Please do not shoot the messinger.

Good luck and may God bless
2 votes Thank Flag Link Wed Jul 13, 2011
Hi Siva,
I can help you with your purchase of a town home, single family, multifamily, condo, foreclosed/REO/bank owned, and more...let me know

good luck!
BUYER CASH REBATE 50%-60% / SELLER DISCOUNT 50%

Quality Full Service! Work directly with the Broker/Owner.
Flavio Tejada, MBA-Finance, Realtor, Broker/Owner
(415) 305-2958
0 votes Thank Flag Link Tue Sep 4, 2012
i am interested in buying a town home, near san bruno area. if you are closer pl llet me know.
my tel:619-482-1475.

Siva
0 votes Thank Flag Link Mon Sep 3, 2012
If you haven't done anything with it yet, you may want to consider selling it now. I'm not sure what development you are making reference to, and what condition your townhouse is in, but the market has changed a bit over the last few months, and you may want to take a shot at selling it now. Really, I'm happy to have a quick conversation and let you know what I think it is worth. No obligation. I just need to know if you are on Terra Nova, Oddstadd, Rosita, etc, the condition your place is in, size etc.
0 votes Thank Flag Link Thu Aug 23, 2012
To actually "get rid" of the existing TH: either through a short sale, or a foreclosure. During the process you may stay in the TH to a certain point in time. You credit is affected, yet not ruined. No new loans for at least 2-3 years. In case any further advice is needed, please contact me directly.
Ph: 415-722-6249; proqvest@gmail.com
0 votes Thank Flag Link Fri Mar 2, 2012
You might be able to find someone like me, who had a short sale previously and can't currently qualify for a loan but who wants to own property. If you carry the buyer's paper but put them on the title for a period of time, that will allow the person to buy property (yours) and you to get out from under the payments. Obviously getting good legal and real estate advice, on both sides, is imperative, but it's something that would work out well for you and your wife as well as any prospective buyer who had a short sale for whatever reason but who is now financially able to purchase but not allowed to get a new mortgage until a specified period of time has passed.
0 votes Thank Flag Link Sun Nov 27, 2011
Options all have pro' and cons'

Loan Modification
Short Sale
Deed in Lieu of Foreclosure
Foreclosure
Rent it out

LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED As quoted by California Association of Realtor News Letter

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

This law is fully set forth as Senate Bill 458 (Corbett) at http://www.leginfo.ca.gov.

Meet with a local agent who is experienced with distressed sales. They have Attorney, CPA, resources to help you make an informed decision specific to your situation.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Sat Jul 16, 2011
If you wanted to rent it out and by a new house you would have to be able to qualify with both house payments to buy a new house. To count the rent as income on the townhouse it would have to show up on your tax returns.
0 votes Thank Flag Link Sat Jul 16, 2011
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