Home Selling in 28540>Question Details

Stephen.audet, Home Buyer in Miami, FL

My wife and I refuse to just walk away from our house. Can we sell our house and finance the loss to avoid foreclosure. The amount would be aprx 10k.

Asked by Stephen.audet, Miami, FL Fri Jan 11, 2013

We live in Jacksonville NC 28540 zip

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14
Stephen, keep in mind that messing up your credit for $10K may not be the best thing for you. This is often the "easy" route to take, but if you plan to keep your credit intact don't immediately go the short sale route. Make sure you consider all your options and don't let a local REALTOR push you into a short sale. This may get the agent a commission, but it may do you more harm than good in the long run. Until your agent knows all the particulars about your specific situation, you should proceed with caution.

For instance, what is you have equity in a vehicle, motorcycle, other real estate, etc....or what if your credit is still strong enough to get a personal, unsecured loan? The point being...take your time and look at all your options, not just the option an agent wants you to see. There are consequences to short-selling a home...not nearly as severe as allowing it to be foreclosed, but consequences nonetheless.
2 votes Thank Flag Link Fri Jan 11, 2013
Good evening, Stephen
You should look into http://www.ncforeclosureprevention.gov. If you are not able to stay in your home, you should find an experienced short sale listing agent. Your lender should be able to work out terms on a short sale including settlement and/or discharge of debt - especially if you are willing to take back a personal note. You should see if you qualify for a HAFA short sale http://www.makinghomeaffordable.gov/programs/exit-gracefully… Short sale will provide an opportunity to settle your debt, foreclosure will not. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
1 vote Thank Flag Link Sat Jan 19, 2013
Hi Stephen

You need to look into so many Government programs that will help you stay in your home.

Your loss is minimal amount of $10K.

http://www.makinghomeaffordable.gov

http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_for…

Good luck

Perry
0 votes Thank Flag Link Sat Jan 19, 2013
Stephen, it will be hard to find someone to help you finance the 10K loss. However, you're probably right that a $10K loss is not worth the damage to your credit. Do you have other assets which could be used to secure the financing?

Personally, I think any short sale where the value falls under $25K is not worth the damage to your credit. Even if you owe nothing on other mortgages, car loans, or credit cards, there is always the possibility you will seek new employment - and a short sale may make the difference.

There are always exceptions, but in Miami, we're seeing appreciation in the housing market, so if you can make the payments, you want to make sure that you're not going to suffer the credit damage unnecessarily. (The math in Jacksonville, NC will be different.).

If you can at least cover 90% your mortgage, consider leasing out the property.
0 votes Thank Flag Link Fri Jan 11, 2013
Hi Stephen,

Call me if you would like to discuss what options you have as a seller. I have a Certified Short Seller designation with experience in this arena. Avoiding foreclosure is key. I am here to help. My number is 910-358-2498

John Smith
Century 21 American Properties
0 votes Thank Flag Link Fri Jan 11, 2013
I would love to help. I am an agent in your area and would love to take the time to talk about what options you have. 910-545-7676 Jammie Garlock
0 votes Thank Flag Link Fri Jan 11, 2013
Guy has the best advice on here so far! A short sale with a loss to the bank will affect your credit for years to come and will hinder you from obtaining another house for a minimum 3 years after it's complete. Talk to a reputable realtor and attorney as well as discuss your options with your lender....and definitely do not be pressured to do a short sale! Good luck to you and I applaud you for not being willing to just take the easy way out!

Susan Crawford-Willis
Broker in Charge
Triangle Home Crew Realty, LLC
919-491-4663
0 votes Thank Flag Link Fri Jan 11, 2013
Yes, you could take out a loan using some other collateral or with the lender who is holding your mortgage to finance the difference between sales price and amount owed. However as many below have mentioned you may also be able to work out a short sale. Where the amount you can sell the property for is "short" of what is needed to pay off the existing loan. Bank may not make you pay the full difference and may share some of the loss with you. Point being ... start asking your lender and your listing Realtor there are options.
0 votes Thank Flag Link Fri Jan 11, 2013
You may possibly be able to proceed with a "Short Sale" if you are needing to sell the property and or I have an attorney that is working with homeowners to negotiate with your lender to refinance at market value and current interest rates that will help you keep the home. I would be happy to help you if I can.
0 votes Thank Flag Link Fri Jan 11, 2013
I believe that you would be able to do a short sale on your property. If you would like some more specific information regarding that please contact me. I would be glad to help.
0 votes Thank Flag Link Fri Jan 11, 2013
Hi Stephen, You should speak with your lender. If your are current with payments their may be some possibility to do a short sale. There are Lawyers specializing in Real Estate that may assist you.
0 votes Thank Flag Link Fri Jan 11, 2013
It sounds like you do have options affordable to you not knowing the entire situation. Would like to talk with you and see exactly what your situation is.
I'm with Century 21 American Properties West and can be reached at 910.489.3102.
0 votes Thank Flag Link Fri Jan 11, 2013
I applaud your efforts to take responsibility for your upside-down property. With such a small gap between market value and amount owed, you may be able to affect a short sale with little or no collateral damage to your credit. You should look into it. That's still honorable, you're simply asking the bank to share the loss with you. Best of luck with your situation...
0 votes Thank Flag Link Fri Jan 11, 2013
You can certainly try to get a loan to cover the losses. As long as the funds in hand will cover the liens and closing expenses, no one will care how you found the funds to make it happen.
0 votes Thank Flag Link Fri Jan 11, 2013
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