Home Selling in 54702>Question Details

Wiland, Home Seller in 54702

What happens if we have to short-sale our old house after we bought a new one due to relocating?

Asked by Wiland, 54702 Wed May 18, 2011

We are not one of those 'buy and bail' stories. We had to relocate because of my husband's job 6 months ago. We were able to qualify to buy another home to live in - we actually downsized - and although we knew it would be tight, we figured we could get by until the old house sold. We've continually been told the price on our old house was too high, so we've been doing price reductions. Still nothing. I lost my job last month due to circumstances beyond my control. We can no longer afford both mortgages. Will we be able to do a short-sale on our old house, and will it affect our new home?

A few more details: We have a 1st mortgage on the old house and a HELOC. We believe we will be able to sell for enough to cover the 1st, just not the 2nd. We are more than willing to live up to our obligation to continue paying on our HELOC. Will they work this out with us? It is w/ PNC Bank, which I've hear they are diffictult to work with. Is this going to sink us?

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9
Carrie Heath’s answer
Wiland; Please consider talking to your original lender about refinancing options. Also, is your HELOC through the original lender on your first home? That may be a good bargaining point, and actually you may consider asking to take on the debt for the short as part of your HELOC payment. This is an unsecured loan option and is a risk for the lender, but one that they are more and more likely to accept as it means in the long run they are NOT short the money for the home sale.

It sounds like you could actually use a good session with your lender, which is free, to discuss the options you have available to you BEFORE your original mortgage goes into distress. Maybe they can adjust your payments to something you can manage until it sells, maybe they can consolidate. Take the time and make that appointment; it will be better for your credit score in the end.

Good luck!
0 votes Thank Flag Link Mon Jun 13, 2011
Each lender will have their own policies that govern this issue. However, my experience is that the lender will make a determination of your hardship. I know of no exclusion when you have purchased a new home. The real question will be what the lender will require in order to approve your short sale. Specifically, I see lenders require a larger promissory note if they determine you an afford to pay off a promissory note. Make sure you are working with an expert that understands how to negotiate these matters. Of course, be aware of the effect a short sale will have on your credit. Ask lots of questions and seek several different opinions before making a decision.
0 votes Thank Flag Link Wed May 18, 2011
The banks hold all the cards in these situations; however, in my experience, I've seen banks be pretty receptive to short sales recently. It is "easier" for a bank to agree on a short sale than take the house back in their inventory thru foreclosure and then start all over with trying to sell it. All banks are different and negotiate differently, but it comes down to how much of a loss they are willing to take on the home. Once you have an offer on your old house, you will have a clearer picture on how much the bank will negotiate. Good luck and let me know if I can help in any way.
0 votes Thank Flag Link Wed May 18, 2011
Sometimes good people run into bad situations. Most banks really don't talk much or offer a real answer until there is an offer on the house. Banks are all about the numbers. My thought would be to work towards getting an offer on the old house and start negotiating with the bank. Best of luck and let me know if there is something I can help with.
0 votes Thank Flag Link Wed May 18, 2011
HR3648 is a law that helps such situations. Care to see the forms and potentials for us to help you possibly even find a cash investor buyer to achieve your goal?

Beth Stanley, Broker
(715)225-3111 cell
Eau Claire, WI
Web Reference: http://programhr3648.com
0 votes Thank Flag Link Wed May 18, 2011
You should first discuss this with a real estate attorney and CPA so you legally understand all your options and obligations. Then if you decide to sell short find a trusted experienced short sale realtor to navigate the process and get your possible short sale closed. There are many companies out there that will negotiate your HELOC down for you due to the hardship. Willing to take on a promissory note on the HELOC will also put you in a better light with the bank and make them want to work with you.

Good luck.
0 votes Thank Flag Link Wed May 18, 2011
Short sales require a "hardship" letter and financial statements showing lack of money to pay mortgage. I would certainly check the track record for an agent that has actually completed a short sale with PNC specifically. He will have established contacts at PNC to get most of your questions answered

By David Cooper http://www.lasvegaswinner.org from Foreclosure Radar

Foreclosure activity slowed in April. Foreclosure filings were down in Arizona, California, Nevada and Washington, with Oregon being the sole exception where filings were up. California filings were down to levels not seen since late 2008, when governmental intervention caused a temporary but massive drop in activity. Foreclosure sales saw similar declines throughout our coverage area, except Washington. Notably, cancellations were up significantly across the board, leaving fewer propeties scheduled for trustee sale.
California
Foreclosure filings in California fell to lows not seen since the fall of 2008. Notice of Default filings dropped 25.8 percent, and Notice of Trustee Sale filings fell 10.9 percent from March. On a year-over-year basis foreclosure filings were down as well, with Notice of Default filings down 28.0 percent and Notice of Trustee Sale filings falling 31.2 percent from April 2010. Foreclosure sale cancellations rose 27.0 percent from March. Acivity on the courthouse steps slowed from the prior month, with 17.2 percent fewer sales Back to Bank and a 15.8 percent drop in properties purchased by 3rd Parties, typically investors. The average Time to Foreclose continued to climb, increasing 3.3 percent to 312 days.


Nevada
Notice of Default filings decreased 17.8 in April from the prior month, falling to the lowest point seen since we began tracking Nevada foreclosure filings in August 2009. Notice of Trustee Sale filings fell 23.7 percent month-over-month. Activity on the courthouse steps was mixed, with sales Back to Bank down by 2.7 percent, yet Sales to 3rd Parties, typically investors, were up 6.9 percent from March, and 81.0 percent from April 2010. Cancellations were 14.0 percent higher month-over-month, and 69.5 percent year-over-year.

David Cooper..Las Vegas Foreclosure Investor abd Buyer's Agent for Bank Owned REOs with Huge Cash Flow. For FREE Daily List email: davidcooper@lasvegaswinner.org or Call +1-7024997037
0 votes Thank Flag Link Wed May 18, 2011
I think you will need to get the solid answers from the bank. Make sure you get everything agreed to in writing. It sounds like you are flexible and I think it will work out better if you go to the bank and start talking it through.
0 votes Thank Flag Link Wed May 18, 2011
Yes, you can do a short sale on your old house. A HELOC is different than a mortgage, but I'm sure we can work it out. We have closed many HELOC files. If the first isn't short, it really should be an easy file to close.

Please give us a call and we can help you with the next step to get started. Our servcies are FREE for homeowners.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Wed May 18, 2011
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