Ivonche, Home Seller in 27614

I woudl like to sell within the next year and my value is lower then what we owe what should I do?

Asked by Ivonche, 27614 Thu Dec 30, 2010

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8
Patrick Thies, Agent, Anytown, IL
Thu Dec 30, 2010
Either you have to bring the difference between what you are able to sell your house for and what you owe the lender to the closing, or you need to contact your lender and see if you qualify for a short sale. A short sale (if approved) allows you to sell the property at current market value and then have the bank forgive the difference (amount not covered by the sale). There are rules and qualifications involved with a short sale so you need to work with someone who has experience with short sales. You are also going to need an attorney to help you with this. There are legal ramifications that go along with doing a short sale, so you wan to make sure that you cover yourself and have it handled correctly.
2 votes
Mike Jaquish, Agent, Cary, NC
Thu Dec 30, 2010
Ivonche,

Before giving out too much information that could compromise your position, read this brochure from the North Carolina Real Estate Commission:
http://www.ncrec.gov/publications-bulletins/WorkingWith.html
It tells you the same thing, be careful with your confidential information withagents until you have determined which agent you will engage.

You may qualify for a short sale, if that is your desire, and you may not. You may have to bring cash to closing as many people are.
Regardless, defend your confidential information.
1 vote
Margaret Hor…, Agent, Cary, NC
Thu Dec 30, 2010
As with most things in life, the answer is, "It depends." Why do you want to sell now? Could you just grit your teeth and hang in where you are for a year or two until your home value comes back in line with what you owe? (Also taking advantage of the time to make inroads on that pesky mortgage balance...)

If you really need to move now, your best option might be to rent out your current home for a couple of years. The rental income to you would cover or mostly cover your expenses of owning the home, leaving you free to move somewhere else. You might or might not be able to get a mortgage to buy another house right away, but if the expenses of this house were covered, you could at least rent somewhere else and buy after you can sell later. Who knows - you might even be able to sell the house to your tenant later!

You do have to be careful about leasing or lease to own programs - be sure to seek the advice of a professional REALTOR on how to structure any program.

Good luck! It's no consolation, but you are far from being alone in your situation....
1 vote
Michael Colv…, Agent,
Thu Dec 30, 2010
Hello Ivonche
This is a dilemma that is all to common today. I would suggest getting an Agent and let them determine the market value of your home, as this is not always close to tax value.
Michael
1 vote
Sally Grenier, Agent, Boulder, CO
Thu Dec 30, 2010
If you don't have to sell, then don't. If you HAD to sell (i.e. job relocation, financial hardship, etc.), then you could try for a short sale (where the bank accepts less than what you owe, and forgives the difference). But if you don't have to sell, then your best bet is to wait and see if the market picks up next year. If you need the name of a good Realtor in Raleigh, let me know.
Web Reference:  http://www.sallygrenier.com
1 vote
Dallas Texas, Agent, Dallas, TN
Thu Dec 30, 2010
Depends on how much the difference maybe ? When you are ready to sell perhaps home increased in value OR have you thought about leasing?

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Tim Burrell, Agent, Raleigh, NC
Thu Dec 30, 2010
You may qualify for a short sale if you have had a financial setback. I teach the class approved by the North Carolina Real Estate Commission on short sales, so the other Realtors learn how to do short sales from me. Also, I have written a nationally acclaimed book on short sales, Create A Short Sale, Your Guide Through the Short Sale Maze that is now in its third edition. Qualifying for a short sale is getting easier, but it depends on the kind of loan you have. If you want to avoid the consequences of a short sale, you can bring the money to the closing table and pay off the rest of what is owned on your loan. Or, you can do a short sale, keep the money in your pocket and if you have a good Realtor walk away with a complete release from the entire loan. If you want to learn all about short sales, go to http://www.CreateAShortSale.com, the encyclopedia website that most of the local Realtors use as a reference. If you want to discuss all the choices, contact me at tim@TimBurrell.com. By the way, I live in your area.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Dec 30, 2010
If you need and must sell, consider a short sale, or, paying for the difference at closing if within your means--If you do consider a short sale, protect yourself and any other assets by consulting with an attorney who specializes in real estate. If hardship can be proven to the lender, you can sell for less than owed, however your credit will be effected.
0 votes
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