Home Selling in 20152>Question Details

Esthersar, Home Seller in 20152

Our lender rejected our short sale because our payments are current. We must sell but don't have the money to close (underwater). What would?

Asked by Esthersar, 20152 Sun Dec 5, 2010

you do?

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8
BEST ANSWER
Can you stop making payments and have the lender reconsider the short sale? If not, try a deed in lieu of foreclosure, or simply walk away.

Richard
0 votes Thank Flag Link Sun Dec 5, 2010
Yea, banks will resist allowing you to short sale if you are not already in trouble with paying.

I am assuming you mean that you don't have enough money in the house to sell and pay off the loan, pay the agents commissions and the attorney and recording fees. You are in a tough corner unless you can sit it out awhile or try and sell for enough to cover the costs or you might have to wait for the payment situation to get worse to get the banks attention to allow a short sale. Another option could be Keys for Deed where you just give the keys to the bank and walk away.

Good luck too you.
1 vote Thank Flag Link Sun Dec 5, 2010
I had a client who was in similar situation. Bank would not work with him on short sale and/or loan modification because they made enough and ratios where under the new guidelines.

But my clients did not give up. After the 4th attempt they finally got the loan modification done at the current interest rate from 6.5%. They plan to stay in the home for now but if work situation changes they may have to let go their home.

It tough but unfortunately situation that banks won't work with home owners.

Good Luck

Ritu Desai
Associate Broker
Samson Properties
Web Reference: http://www.eNOVAhomes.com
0 votes Thank Flag Link Tue Jan 4, 2011
In order to best protect yourself and any other assets you may have, consult with an attorney who specializes in real estate--he/she can best advise on how to proceed--if you cannot afford an attorney, contact your local Aid Society for a pro bono attorney--free.
0 votes Thank Flag Link Sun Dec 5, 2010
You need to speak with a real estate attorney, they are the only ones who can give you an answer to that question. I always encourgae all of my clients who are entering into a short sale to speak with an attorney. Most of us are just Real Eatate agent and can't give legal advise.

Good luck
Tom
0 votes Thank Flag Link Sun Dec 5, 2010
Banks do not pay attention to short sales unless the seller is behind at least two months. So if you want to sell it and not bring a check to the closing table to cover the difference, the banks want to see you behind, I am a Realtor and certified to handle short sales, yet recommend that you hire a loss mitigator. Some Realtors like to do both, but unless they have team, it may be beneficial to have an experienced middle person dedicated to working with the bank.
0 votes Thank Flag Link Sun Dec 5, 2010
You should have provided then with proof that you have to sell and not getting a short sale will lead to financial distress. Your listing agent should be using a professional negotiator that should be guiding you through this process. You can go back to teh bank and ask for them to reconsider, include a new letter that without the short sale you will be forced to move and so on, include proof of why you need to move, job transferm health, marriage, divorce etc....

Please see my blog with tips and advice for getting a short sale approved
0 votes Thank Flag Link Sun Dec 5, 2010
Hello Esthersar,

Generally for a bank to approve your short sale, a home owner must prove financial distress. You should use a Realtor who is Short Sale certified and can put a good short sale package together for you. Financial distressed home owners can't really have any money in the bank account....

Have your Realtor speak to you about other options and have them work with your mortgage lender.

Good luck!

Melia
melia@prusd.com
Web Reference: http://www.oliverindra.com
0 votes Thank Flag Link Sun Dec 5, 2010
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