Home Selling in Longview>Question Details

Kc, Home Seller in Longview, WA

i am upside down and struggling to make payments. Cant re finance and need advice on short selling my home.

Asked by Kc, Longview, WA Sun Aug 21, 2011

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Venancio Gonzalez’s answer
Talk to your lender as soon as possible and ask for a short sale package and what other options are available for you. If refinancing is not an option, you may be able to do a Loan Modification, Deed-in-Lieu or Bankruptcy. Obtain legal advice to learn about all your options and possible consequences.

The short sale process is long and complicated; it could take up to six months or more. You will need the help of an experience short sale real estate professional to market the home and help determine the estimated fair market value of the property something you lender will require. Here is a link to a short sale article I wrote a while back http://cowlitznewsandrealestate.com/post/1084654/cowlitz-hom…

Feel free to stop by my office, e-mail me or call me with any questions.
209 West Main Suite 200 Kelso, WA 98626
gonzalezq@windermere.com
(360) 751-4001
0 votes Thank Flag Link Thu Aug 25, 2011
Ron Thomas wrote: "It would depend a great deal on HOW MUCH you are Upside-Down. . .."

I would agree with that, and add whether there is a first and a second mortgage. If there's a first and a second the chance of owing a deficiency is greater. That's part of the reason to get an attorney's advice.

When you're a hammer everything looks like a nail. When you're a real estate agent the best solution can always be a short sale. I will admit, however, you can have the same problem with attorneys if you pick the wrong attorney who may not be familiar with all of the options.
0 votes Thank Flag Link Mon Aug 22, 2011
Jirius and I are of the same mind:
It would depend a great deal on HOW MUCH you are Upside-Down:

1.) Just being Upside-Down is not sufficient reason for the Bank to do anything for you:
2.) The Bank did not create the Recession and the bank has it’s own problems.
3.) For some RELIEF, you need a dire Financial Hardship to exist; such as you lost your job, or you had a Medical Catastrophe.
4.) If you want to do a Shortsale, you will have to prove to the Bank that they must help you, now or later. Most Banks will not even talk to you if you are CURRENT; so you will have to go past the Point-of-no-Return before they will do anything.
5.) The first step would be to find a Realtor, well versed in Shortsales, who will help you.
6.) This is not as simple as it sounds; many Agents have “sworn off shortsales” because of what is involved in them.
7.) It will make a very big difference if you have ONE LOAN as opposed to having a SECOND. The chances of succeeding in your Shortsale are greatly reduced by having a SECOND loan.
8.) You will have to sit down and compose a letter to your Lender; telling them exactly why you have a hardship and what you plan to do. It is my experience that you have to do this, personally; your Realtor cannot do it, and your Attorney cannot do it for you. You should be OPEN and HONEST, don’t try to B.S: This is about the only thing in the whole process that is PERSONAL. (If you really want to be PERSONAL, do it on a lined pad in your own LEGIBLE handwriting or printing.)
9.) If successful, you now can say (in the Listing) that your Shortsale is pre-approved by your bank.
10.) Now, you can List the house with your Realtor and the MLS. Your Realtor will do a CMA, (Comparative Market Analysis) to determine the Listing Price. The Bank may order a BPO, (Broker Price Opinion) to determine the Listing Price. In many cases, you will be on your own; the Bank will not communicate with you.
11.) If you get an Offer, you will probably “rubber stamp” it and your Realtor will forward it to the Bank.
12.) There is no set time for the Bank to respond; we have heard of three weeks, and we have heard of a year or more. This is not fair, not reasonable, and in fact, it is rude and ridiculous. But it is a fact; so do not get impatient or upset with your Realtor, it is not their fault and they have no control over it. They will gently try to push it along, calling every week or two; but they understand that the person who has that file on their desk, probably has 100 to 300 other files, (they could accidently take a file and move it to the bottom of the pile; things like that have been know to happen.)
13.) You must understand that the Bank is there to make money; they are not a social service organization. It is possible that they believe that they might be able to make more money by letting the property go through Foreclosure. Or, they might believe that next year (or six months from now) the Market will be stronger and they can either COUNTER your offer, or, let it go through Foreclosure.
14.) Now, it is seven months later, and you get a Letter of Acceptance from the Bank: It will probably delineate the terms that they deem acceptable: For example; it may say that the Escrow is to be 45 days, that XYZ is going to be the Title Company, that they are not going to pay for any Inspections, that they will pay a maximum of [$750] for Schedule A(1) repairs due to Pest Inspection, and that if you are not ready to close on time, you will be charged [$50] per day for each and every day.
15.) If you are still in the game, your Buyers will do their Inspections, and set up their Loan. The Bank will order the Appraisal.
16.) Follow your Realtor’s guide and in 45 days, you will be moving.
17.) That would cover a SHORTSALE: But what about a Foreclosure; that would be a separate topic.
18.) You’re not out of the woods yet. If the Bank accepted [$100,000] less than the amount of the loan, they might come after you with a Deficiency Judgment. The list of Non-Recourse States is changing fast. Please consult an Attorney at this point; I am not equipped to answer Legal Questions. But,
19.) I will say that it looks like Deficiency Judgments are like an ice berg sitting out there, waiting for your ship to come along. If you Google “non-recourse states” you can get an idea.
20.) There are still other considerations: Are you behind on your Property Taxes, (if you have IMPOUNDS, you may be? HOA fees? Insurance?
21.) You need to do your Diligence.

If you can possibly make it thru the next couple years, and do not have to go through Foreclosure, you will probably be glad you did.

Good luck and may God bless
0 votes Thank Flag Link Mon Aug 22, 2011
Jirius wrote: "Avoid a bankrupcy or foreclosure at almost any cost."

For some people a bankruptcy can be the best solution. It also might be inevitable, depending on their other debt level or the amount and identity of the second position loan, if there is such a loan. It also might be the only solution that lets them keep their house, if that is their goal.
0 votes Thank Flag Link Mon Aug 22, 2011
No problem. That's what we do. Feel free to give us a call and we can explain the whole process to you. How much do you you? What is the current value of your home? How many lenders to you have? Who are your lenders, etc? Once we clarify your exact situation, we can tell you what to expect.

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 Mon Aug 22, 2011
Avoid a bankrupcy or foreclosure at almost any cost.
Web Reference: http://www.metromgi.com
0 votes Thank Flag Link Sun Aug 21, 2011
On other option, besides a short sale, would be to do a Chapter 13. If you have a first and second mortgage (deed of trust), and the property is worth less than the amount owing on the first mortgage, you may be able to entirely discharge and strip the second position mortgage! Thus, if your house is worth $200,000 and your first mortgage is owed $230,000, you may be able to strip the $50,000 second mortgage. If those are similar to your facts, you should contact an attorney who does Chapter 13 bankruptcy.

In any case, you should contact an attorney regarding your other options besides short sales.
0 votes Thank Flag Link Sun Aug 21, 2011
I am sorry for your situation. There are far too many American home owners who find themselves in a similar situation these days.

I suggest that you contact a local Realtor who has short sale listing experience. Short sales are handled differently from normal sales. A Realtor who has special training and experience would be the best match for you. I recommend a Realtor who holds a designation in advanced short sale training. A Certified Distressed Property Designation is one such advanced training level. I happen to know a CDPE in Vancouver, Wa. who can help you. Let me know if you would like a referral to this Realtor.
0 votes Thank Flag Link Sun Aug 21, 2011
Go into the short sale already planning for when the home sells. Stay in your home and maintain it like one of the other agents recommended - don't abandon it even if you stop paying the mortgage completely. Vacant homes don't do the community or the banks any good - they deteriorate and can attract crime. Take advantage of the time in your home that you are not paying the mortgage to save as much cash as you can - you'll need it for your moving expenses, first month's rent and rent deposit on your next home. If the home gets foreclosed, stay there until an agent shows up and notifies you the bank expects you to leave. You should have at least 30 days, maybe more. Again, take advantage of the time you have to manage your finances to prepare for life after your short sale.
0 votes Thank Flag Link Sun Aug 21, 2011
I do a lot of short sales around the
Seattle area. You can go to my blog on the link below & educate yourself. If you do not know a short sale experienced agent down in Longview, just let me know & I would be happy to refer one to you.
0 votes Thank Flag Link Sun Aug 21, 2011
You need to contact your lender immediately by phone and request a Short Sale. The next phone call needs to be a Realtor to help you. Both you and the Realtor will need to follow the particular lenders procedures. You will need to gather all of your financial statements: mortgage papers, credit card bills, auto and school loans, income statements, taxes etc. You will also have to give permission, in writing, for the lender to release information to the Realtor so that they may negotiate on your behalf. Act quickly because this can be a long process.
0 votes Thank Flag Link Sun Aug 21, 2011
Call your lender and ask for their short sale department. Find out what their process is and start gathering the information you will have to provide them to show that you qualify for a short sale. After you get that going, find a short sale specialist that you want to work with and then start the process to sell your home.

You have made a good decision to short sell and not just let it go back to the bank. Keep up with your maintenance on things that can make your home deteriorate. Get your home show ready just like any other seller. The more you can sell it for the better and a clean home will always set a better stage for buyers.

Good luck.
0 votes Thank Flag Link Sun Aug 21, 2011
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