Property Q&A in Hanahan>Question Details

Tim, Home Buyer in Hanahan, SC

We are living in an expensive DI home in which we are drastically upside down in and looking to down size. If we short sale or heaven forbid,

Asked by Tim, Hanahan, SC Wed Sep 5, 2012

get foreclosed on, will it be difficult to rent or buy a home?

--
This question is about this property: http://www.trulia.com/property/3076211634-1303-Song-Sparrow-…

Help the community by answering this question:

Answers

6
Either way will hurt your credit to varying degrees. There is no pat answer. It all depends on your specific situation, and who the lender is that you are dealing with. Just being upside down on a loan does not constitute a good reason for a short sale. You will need to prove financial hardship to your lender before they will approve a short sale. Even then, it's not guaranteed that you will be successful selling short. I would start with a conversation with your lender to see what kind of assistance they are willing to offer, if any. Your possible choices would be a loan modification, short sale, deed in lieu of foreclosure, or foreclosure. Foreclosure is your worst option since it can come back to haunt you for many years and you will end up owing much more money to the bank than by facing the problem straight on right now. Fair warning...This will be a long, tedious, and frustrating process no matter what route you ultimately choose. Stay dedicated to seeing it through to the end, and keep the faith. When you come out the other side, you will be in a much stronger position.
1 vote Thank Flag Link Wed Sep 5, 2012
No! We had a client in a similar situation that was able to buy a beautiful home in a affluent neighborhood before he had to short sale his home which was equally beautiful, but it all depends on your situation and circumstances. If you need further assistance contact us and we will be more than happy to speak with you about all your options. Our team has had specialized training in distressed properties and carry a special designation as a certified foreclosure intervention specialist which is not something all Realtors have.

The Reese Team
Spence & Theresa Reese
Harbourtowne RE/Daniel Island
843-478-3104
Team.Reese@yahoo.com
1 vote Thank Flag Link Wed Sep 5, 2012
Typically, if you have proof of income, most landlords are perfectly understanding of why you may have had to foreclose or short sell your previous home in today's economy - you aren't alone. So renting should not be too difiicult I have seen some private money lenders provide financing for homebuyers that have had a short sale, within a year of the short sale, but typically, you would have to wait three years for most government backed loans. The standard for a forelosure is 7 years. Other cosiderations can come into play, so it is best to speak with a lender about your specific situation. I would be happy to make some recommendations if you would like to investigate a bit further and am also happy to talk with you about short selling your home.
1 vote Thank Flag Link Wed Sep 5, 2012
Tim,
First of all it is much better to short sale your home than to foreclose. A foreclosure can be much more devastating on your credit and it will make it much more difficult to purchase a home in the future or even rent, depending on the landlord's policies and credit checks. A foreclosure could potentially affect your employment as well. If you short sale your home, you may be able to purchase within 1-2 years. This is dependent on many variables and I would suggest that you contact a REALTOR who is a qualified short sale expert and has the experience and knowledge to help you. Many sellers wait until they are so far behind on their mortgage payments that it is too late to short sale and they ultimately end up with a foreclosure. If you think that a short sale is something you might qualify for, I would recommend you get the process started sooner than later. I have seen way too many sellers wait and/or delay the process because of embarrassment but it is much more embarrassing to have your home foreclosed on. Don't hesitate to contact me if I can help you any further. Best of luck.
1 vote Thank Flag Link Wed Sep 5, 2012
Thank you!. Our Carolina One realtor advised that we can only begin the short sale process after being 3 months behind on our payments, so it looks as if that's the path we will be taking. Just a little worried about where one can go from here. I realize that I'm not alone either but still. I wish there was an easy path. Thanks again for your advice.
Flag Wed Sep 5, 2012
If we short sale and you have the right bank a defeciency judgement might not be sought from the bank.
In a foreclosure situation you will have problems. I would consult with an attorney about your dilema.
If I may be of assistance, please don't hesitate to call me. 843-469-1330
1 vote Thank Flag Link Wed Sep 5, 2012
Thank you.
Flag Wed Sep 5, 2012
Yes you'll have trouble purchasing another home right away but it really depends how your other credit is and what you work out with your current lender for the deficiency balance. You can probably get around renting with extra security deposit. I'd recommend you speak with your lender first for options and then an attorney and a tax advisor before short selling to seeif that's the right path.
0 votes Thank Flag Link Wed Sep 5, 2012
Thank you!
Flag Thu Sep 6, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer