Foreclosure in Orlando>Question Details

Tom, Home Seller in Orlando, FL

Re short sale: Realtor says my home is worth $300K as is. Bank is owed $300K. We have very low income now.

Asked by Tom, Orlando, FL Sat May 16, 2009

Does bank have any incentive to OK short sale if they think house might sell for $325K?

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If you have a valid hardship, and there is a short payoff after all closing costs, including commissions, then you have a short sale transaction that requires lender approval. If there is no short payoff after all closing costs, including commissions, then you don't have a short sale transaction and don't need lender approval to sell.
0 votes Thank Flag Link Wed May 27, 2009
If you think the house will sell for $325k then you should still apply for a short sale and have the property listed at the asking price. If offers don't come in, then you already have the short sale process started so you can start to lower your asking price.

Contacting an investment company might be your best option since they can provide you with a bonafide offer your lender will require to even consider a short sale.
0 votes Thank Flag Link Sat May 23, 2009
Any lender looking to approve a short sale has a number in mind they would like to net from the proceeds of the property. They along with the seller wish to do this in the least amount of time. In the scenerio you present the lender in most cases would be very willing to work with you on the short sale if you have legitimate hardship, & can show financial records. Lenders in my experience with short sales will cooperate fully if they are receiving over 80% of their loan amount back.
There are many methods other than short sale or foreclosure including loan modification or died in lieu. Please visit my website for further information.

Aloha, Gina
0 votes Thank Flag Link Sat May 23, 2009
A short sale is not for people who want to sell, it is for those who HAVE to sell. It does cost a lender $60K for a foreclosure. If you do not have money for the deficiency, and you are in a hardship situation, you will likely qualify. Here is an excellent resource!
0 votes Thank Flag Link Fri May 22, 2009
You do not have to be in arrears to have a succefful short sale. Chances are it will cost the lender far more than $25k to foreclose on your home....with the right Realtor negotiating, and with proper hardship, there is a good chance you will be successful.
Web Reference:
0 votes Thank Flag Link Fri May 22, 2009
The Hagley G…, Real Estate Pro in Pleasanton, CA

Try this website:

It has information on the possible opportunities you may have. See if your house qualifies for a remodification from US Gov. Please be very careful of any offers out there to help...loads of mis leading information. Get another Realtors opinion on your value. Try and talk to your bank. Try to keep up your payments current as best you can and if worse comes to worse...get it listed right away in short sale if you have to.

Banks are beginning to move on short sales a bit faster than earlier in the year. There are some incentives for the banks to try and work it out with you. Try all these steps and I will leave my contact information if I can help you out in any way. I am happy to give you my evaluation of value in a second opinion. Take care.

Gay Middleton
Realtor**Moving you in the Right Direction!
Web Reference:
0 votes Thank Flag Link Fri May 22, 2009
Hi Tom -- Most short sales are only possible after you're several months in arrears on your mortgage and if you can prove that you have a legitimate hardship (loss of job, large expenses, and no assets). If you believe that your income will increase to where you can comfortably make the payments again, you should call your lender to try to arrange a loan modification. Since your debt on this property is very close to its value, this might be very possible. Sometimes the bank will give you a better interest rate or better terms if you contact them early (before you start to get into trouble with non-payment). You'll want to call the "loan modification" department of your bank or mortgage company. If it's an FHA or VA loan, you can go to Just one word of advice--don't pay any upfront fee for advice. Check the details before you send anyone substantial money to help you--there are lots of scams out there.

Best of luck to you.

Louise Warring,
Coldwell Banker Residential Real Estate
0 votes Thank Flag Link Sat May 16, 2009

Why do you think your house would sell for 325k? If you think its worth that much then I would suggest to talk to your realtor and explain your reason. But, if realtor came up with his number by comparision market analysis then he would be right to start with that number to attract buyers quickly for your house.

Bank also sends their appraisal and do the same thing as your realtor to figure out the market value. So, give it a try, you never know, bank will take that offer, if that's close to market value...Good luck!
0 votes Thank Flag Link Sat May 16, 2009
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