The sooner you do a short sale, the better it is for you! I've been helping many homeowners with the short sale and in some cases, I've been able to get money for the owners from the bank depending on the bank, I even got $30k for a homeowner. I am local and I live and work in Irvine, call me and we can talk about it in details. (949) 514-4177 MJ
Prices are climbing, however you would need to generate a $300,000 sales price just to break even after selling fees, thatâ€™s a 30% appreciation and will probably take several years. Let's look at some basic numbers. Let's say that we have an aggressive appreciation rate of 5% over the next 5 years so your unit goes up enough so you can break even. It will cost you close to $30,000... just so you can come out even at the end. That may or may not be a sound decision.. there are several factors to consider, not just dollars and cents. There are credit and tax ramifications that could be factors in your decision.
I am a resident of Watermarke, an original owner and an active realtor with Prudential. I have been through this decision process with clients through 3 downturns of the market over the past 20 years. Feel free to contact me for a more in-depth analysis of your situation and I'd be happy to help you make an informed decision.
I do think it's important to find out if your bank will even grant you a short sale. Knowing whether they will or won't give you a short sale is an important variable in your decision-making. I HAVE seen short sales denied more than once.
In the end, I don't believe any professional can answer this for you. You must make the decision based on your life, future goals, and finances.
Best of luck.
Usually if home owners that are under water so to speak can rent without loss, I usually recommend that solution depending on what they are able to do thereafter, rent another place, purchase what, how much down payment....
Even if considering a short sale (hardship???) what happens thereafter, renting....
There are a lot of questions, a lot of numbers to crunch to get at the end to the very BEST solution for each individual.... Look at Christians response below....
You need to be very honest and put all your cards on the table and look not only at what to do
with your condo at this time, but where do YOU go from there.... and remember if you rent you always MUST consider that it may not always be rented and that you will become a landlord with responsibilities (repairs, collecting rent, rent being late etc. etc.)
Take it slow and get all the right advice you can get, and yes you need an Attorney and a good
Realtor and may be even a good accountant and a lender's advice for your future steps....
Good luck to you, it just is a difficult market for many.
I hope that the experience of an Irvine Realtor can shine some light on where the Irvine market may be going in the next few years.
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com Check out my website at htttp://www.tinyurl.com/MeetEdithHere
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
So if you are looking for someone aggresive to get the job done rather soon and guide you through the complicated short sale process then myself and my in-house affiliate attorney John Morkos Esq specializing in short sale,notice of default,trustee sales have the track record and experience you can count on!
Let's keep it real! Honesty is best policy so I would assume you did have already tried loan mod,refi etc in the event you are self-employed then you already got the answer there is no need to sugarcoated.
Please be informed that we do have a pool of investors and cash buyers who are currently looking for anything that makes sense so if priced right it may take a day or two to open escrow.
Step one: Please do consider the fact that the Debt Forgiveness Act expires at the very beginning of 2013 therefore you only got left 2 1/2 month to make an educated decision to attempt the short sale. Why? Because if you had purchased this condo anywhere before 2007 you are upside down a bunch anywhere between $100,000 to $300,000 and you will be issued a 1099 from your lender/bank for the difference between loan amount and current market value which will become taxable income added to your regular income and possible ending up you owing to IRS SUBSTANTIAL AMOUNTS please consult your CPA .
Step two: Short sale no matter what anybody will affect your credit score for next incoming years I would be more than happy to send you FannieMae guidelines to understand the implications however losing $500 plus a month as an investor would not be an option. If you still have cash saved I can get you into any property with 30% down private hard money loan who does not care about your FICO score or employment history.
Step three: Innacurate info given bellow, at this point if you do go forward with the short sale then you have no worries your lender will pay for your closing cost,6% commissions and in most cases relocation fee paid to you in the thousands.NOTE; SHORT SALE HAS NO COST TO SELLER BANK PAYS EVERYTHING INCLUDING SELLER'S RELOCATION FEES so be informed and alert.
Please also be informed that it is against the law to collect rent while in foreclosure so if you do have tenants my attorney will help you evict tenants
Step four: No need for sign on the property so it can be done confidentially if you dont want to disturb your tenants,remember short sale process is lengthy especially if you have two loans from different banks. If you do have a notice of default then your clock is ticking,if you do have a trustee sale posted on the door my attorney will help postpone it to complete the short sale but if you are within your last ten days then it's game over unless you apply for bankruptcy.
I hope this is enough info for you to diggest at this point next step is to contact me asap to pencil out the listing details.
Cristian Caranica, Broker/CEO
CENTURY PLAZA REALTY
Orange County HQ Office:
2082 Michelson Dr, Suite 100M
L.A County Branch Office
468 N Camden Dr,Suite 268H
James I. Park
Park Realty Group, Inc.
Do you plan on buying again within the next 2 to 3 years? Also keep in mind if this is not an owner occupied home you may be subject to a 1099 from the short sale lender for the deficiency (assuming they approve the short sale).
I have done many short sales and will be happy to discuss it some more if you like 949-400-1330.
All coast realty