Valinda, Home Seller in Philadelphia, PA

Valinda- never been late but need to sale pay off is 257,000 but the house are saleing for 250,000

Asked by Valinda, Philadelphia, PA Sun May 25, 2008

I am not late but really need to sale before i am. my neighbor is saleing there property for 230,000 to 250,000 so that cause me to do a short sale. I do not make enough to afford the property by my self. But need to do a short sale. DO i have to be late before they would consider me to do a short sale? What the best way out of this property

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Do you need to sell to relocate to another job, or because you can no longer afford your current home?
If you need to relocate, you can:
1. Have your Realtor ask the lender(s) for a short sale package and see if they will be cooperative. You'll need to show that you are insolvent (cannot pay your bills).
2. You could offer to take back a promissory note for the short fall (not ideal, but an option)
3. Let the lenders foreclose (least desireable option).
4. Lease it out (talk with a CPA regarding tax consequences). Least impact on your credit and in a soft market common)

If you prefer to stay in your home, ask the lender(s) to consider restructuring your loan so the payments are manageable.

From the lender's perspective, they would prefer (in order)
1. You stay in the home, modify the loan
2. Short sale, they lost some money, but they will ask you to help (so if you have other insurance, 401 K, etc.).
3. Foreclosure - most expensive for the lender, not desired.

Good luck
1 vote Thank Flag Link Tue May 27, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
Just had a very similar situation.....had my clients contact the bank up front and request paperwork for short sale......that way it was already in the works.......then when offer came in the bank was prepared for it.....can't say whether or not your bank will except it; depends on how much of a hit they will be taking but you definately want to be talking to your bank ASAP and getting the paperwork moving.......good luck.....Debbie
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1 vote Thank Flag Link Sun May 25, 2008
I currently use a third party short sale company to process my short sale transactions, this way you, nor the realtor has to be concerned with missing the proper steps to be taken. There is a lot of paperwork with these short sales, therefore, make sure you have a realtor that will take the time to help you along. Also, negotiating with the bank is no fun at all, therefore, the short sale company is a good thing to consider since they do this type of work all day long. Every bank is different, and there seems to be no real rules when the bank is considering a short sale. You can contact me if you'd like at 215-676-0863 and I can assist you with your situation. There is a wise way to approach your circumstance, but I would need to know the details. You may not want to continue making payments if you will be moving on, but your credit score will take a temporary hit. It's hard to give real good advice without knowing too much at this time? You may be wise to do something sooner as opposed to later with the market being the way it is? Take care and God bless.
0 votes Thank Flag Link Mon May 26, 2008
Short sales are very complicated and time-consuming but well worth the efforts when done correctly. Most realtors do not have experience in doing short sales, especially in Philadelphia where there has been as much foreclosure activity versus other parts of the country.

It will be imperative for you to have the right agent to assist you - one who is well versed in the entire short sale process. You do not have to be late - I just did one in a condo building where the owner had stellar credit and was never late but there were other mitigating factors that helped to have the short sale accepted by the bank - in that case their were 2 loans.

We are currently handling other short sales at the moment and marketing properties currently as short sales. So if you have other questions, feel free to contact us as we are local and specialize in Philadelphia. Also, view our website below for more info about us and other helpful hints.
0 votes Thank Flag Link Mon May 26, 2008

You should be able to get a short sale if you work with the bank. You will need to write a good hardship letter. In addition there's a specific market strategy you can follow that will result in a quick sale. I'd be happy to assist you. I'm experienced in working with banks and providing the needed documentation that will help you get the needed results when negoiating with the bank. Feel free to call me anytime toll free 1-888-818-0957.
0 votes Thank Flag Link Sun May 25, 2008
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