debragiannoit, Renter in Temecula, CA

I am in the process of a short sale and the value of my house keeps going up. Should I pull out of short sale?

Asked by debragiannoit, Temecula, CA Thu Sep 20, 2012

I paid 285k for my home in 2007, last year one like it sold for 140 I put my house up for short sale at 158k had offers in 2 days one went in at 178k bank now wants 190 Prices really going up Should I try to get out of short sale?

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Answers

5
Nancy Kurtik’s answer
If you want to take advantage of the Mortgage Debt Relief Act, you would still be looking for $95,000 in tax relief. I would ask the buyer's agent to counter your lender with $184,000, meeting them half way in the middle. Remember that the shortage is the NET your bank will get, at a $95,000 shortage, and a 20% tax rate, you will be stuck with $19,000 in taxes.. OUCH!
0 votes Thank Flag Link Sun Sep 23, 2012
Did you sign a legal purchase agreement with a buyer yet? If so, then just realize, by pulling out of the deal, you may be causing that buyer damages and they do have the right to sue you and/or place liens against your property.

If not, then keep in mind, "Normal" historical appreciation of real estate is generally around 2-6% per year. Ask yourself how many years, not being optimistic, but, rather, realistic, it will take to recuperate your lost equity.

Good luck with whatever decision you make.


Sincerely,


James Bellile
0 votes Thank Flag Link Thu Sep 20, 2012
Prices are definitely going up but you are still pretty far below $285k. What is your current loan amount payoff? 285k? or more?

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Robert Adams
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The Adams Team at
Rothwell Gornt Companies
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0 votes Thank Flag Link Thu Sep 20, 2012
My payoff is 227k and the biggest problem is the interest only loan at 5.58% My hardship is from a medical surgery I had a few years ago and it has become difficult for me to work without being in excessive pain. The job situation for me has become a nightmare and income is limited. I thought I could rent it out and move back with my family for a while until I can get a new career and possible get back some of my money. I heard that these investors are driving the market up and that this was a false increase. What do you think?
Flag Thu Sep 20, 2012
Debra
If the last sale is at $178,000 and that is the highest comparable in your neighborhood then the bank can want $ 190,000 but will they get it? They might. $190,000 if the property will bring that price is still $95,000 underwater. I guess it depends on your financial situation and what your hardship for the short sale is in the first place. Supply and demand is driving the run up right now. No one knows how long and that will continue and what market conditions will come into play to send the market in a different direction. I would sit down with your agent and discuss what would be best for you .
Thank You
Suzie Marquardt
SuzieM@RealtyOneLV.com
0 votes Thank Flag Link Thu Sep 20, 2012
I would say no, the bank is just trying to minimize its losses in my opinion. The bank knows that someone will snatch it up right now because of the lack in inventory. We are seeing the same thing in Vegas!
0 votes Thank Flag Link Thu Sep 20, 2012
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