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R. Davis, Both Buyer and Seller in Miami Beach, FL

My condo is for sale on the mls, it's dirt cheap, similar prices as shortsales.

Asked by R. Davis, Miami Beach, FL Thu Apr 16, 2009

But is it okay to sell it if it's 2 month late on mortgage and hoa's?

Help the community by answering this question:


Hi Vernon -- When you sell a home, you are agreeing to the terms of the contract, and agreeing to transfer ownership and possession to the new owner (the buyer) that is free and clear of any liens and encumbrances. In order to do this, the liens you mention (the mortgage and the hoa) must be paid up to date as of the date of the closing. If there is not enough equity in the home to allow you to pay all of the costs of the sale, as well as satisfying all outstanding liens, then you would have to "bring money to the closing table". This means that instead of getting a proceeds check made out to you for the extra money over and above the sale price and all costs, you would have to bring a certified check to the closing to pay off any liens and debts (selling commissions, doc stamps, title insurance) that still exist in your name.

If you know right now that you won't be able to do that, then you should contact your lender and find out if you would be eligible to sell short. In order for the bank to agree to this, you would have to prove a real hardship and the lender will ask for your bank account statements, your pay stubs, your income tax returns for the last two years and require that you submit a hardship letter describing why you are now in the position of not being able to pay your mortgage. If you meet the criteria, they may give you permission to contact a real estate agent to do a market analysis and put your home on the market for its fair market value. When you get an offer on the home, it will be contingent on the lender agreeing to accept less money for your mortgage than you really owe. They will factor in back mortgage payments, hoa dues, taxes, and costs of selling the home before they give your buyer the approval of their offer. sounds like you have some math to do. I'm assuming your agent gave you a net sheet which tells you what the proceeds to you are at the closing. You might also wish to consult with an attorney or accountant to help you determine the best course of action, considering your specific financial circumstances, taxes, etc.

Best of luck to you. I hope it works out to your satisfaction.

Louise Warring
Coldwell Banker Residential Real Estate
0 votes Thank Flag Link Thu Apr 16, 2009
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