Home Selling in 01754>Question Details

Shockwave, Home Seller in 01754

Should I short sell or get a loan to cover the difference?

Asked by Shockwave, 01754 Sat Feb 20, 2010

My family has decided to move closer to family and we are selling our house. We estimate that we will sell about $15K less than what we owe and, with realtor fees, need about $35K to close. We have about $15K we would be willing to take from savings and can get $20K either via loan, cash advance from CC's.

We would like to buy a house in our new location in 1 to 2 years, so we will rent for that period and save. Our credit is excellent and we shouldn't have any problem paying back the $20K within 2 years max.

My question is: is it worth the pain, negative credit, to go through a short sale to gain that $15K? From my research on short sales it looks like there is alot to deal with regarding the transaction, from trying to get the (in our case) HELOC company to approve it, long closing, scaring off buyers, constantly moving then sudden closing dates.

Maybe I'm trying to convince myself the loan is better! I'm just looking for opinions. Thanks for any advice!

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Answers

6
Home Seller,
Obviously, this is a huge discision for you and your family. A short sale is a long, challenging process. Your credit will be ruined. It will take 3-6 months at least. You will be able to buy again, once your credit is repaired, in about 2 years or so. The bank wants to see a hardship by you to approve the short sale. If you are making your payments, have money in the bank or available, the bank will not see it as a hardship.
If it's possible for you to sell, and not do a short sale, and not negatively hurt your financial situation, I'd suggest to not do a short sale, bring money to the closing table. In the long run, you will be very happy that your credit is stil lin tact. For $15,000/$35,000, you've worked to hard to have great credit. Good luck with your choice/move.
Web Reference: http://www.donjacks.com
2 votes Thank Flag Link Sat Feb 20, 2010
Shockwave:

I have lived in Maynard for 20 years and am a regional broker. I am certified by the MAR as a loss mitigation specialist and would be more than happy to sit with you to discuss your options. I recently have met with three families discussing many of these items and it is truly a personal decision. Please let me know if you would like to meet. Best
0 votes Thank Flag Link Fri Feb 26, 2010
Shockwave:

I have lived in Maynard for 20 years and am a regional broker. I am certified by the MAR as a loss mitigation specialist and would be more than happy to sit with you to discuss your options. I recently have met with three families discussing many of these items and it is truly a personal decision. Please let me know if you would like to meet. Best
0 votes Thank Flag Link Fri Feb 26, 2010
My suggestion is to have a forensic mortgage audit done. In about 90% of home loans there are violations of RESPA and TILA. Those violations are used as leverage to get your bank to work with you in a number of ways, such as loan modification and/or allowing a short sale when they typical would not. Visit the link below for more information. Feel free to contact me if you'd like a free preliminary mortgage audit which will give you a good idea of what can be done in your unique situation. Most people are completely unaware of the underlying problems with their mortgage and the enormous leverage that gives them with their lender.
0 votes Thank Flag Link Sat Feb 20, 2010
Shockwave,

Sell your home without ruining your credit and move on.
Your lender would not accept a hardship claim from you anyway because you
are making your payments and have income and money in the bank.

Best of Luck,

Marita Topmiller
0 votes Thank Flag Link Sat Feb 20, 2010
Don is right. Go for the loan and bring the cash to the closing table.
0 votes Thank Flag Link Sat Feb 20, 2010
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