Ok so we are short selling our house but should we try tom save up money during the process, then rent, and hope to be able to buy again?

Asked by Peaceandpowerparenting, Hurd, ME Sat Sep 15, 2012

Or are we just screwed up with this entire market and will never be home owners again? What will it take to own a home again? Help. Also, is it true that the band can still foreclose on your home if the short sale process takes too long?

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Bill Eckler’s answer
Bill Eckler, Agent, Venice, FL
Sun Sep 16, 2012
Peace.....

Your plan is a sound one except for the savings portion. Showing any reserve money will likely be viewed by the lender as a reason to not work with you in this process. It sounds like you could benefit from some sound legal advice. Using an agent to sell your property is one thing but creating a sound legal financial direction would best be charted via the use of an attorney.

Contrary to the beliefs of most, fees associated with this process normally are not excessive.

Short sale + attorney= increased chance for success

Good luck,

Bill
1 vote
Diana Margala, Agent, Rancho Cucamonga, CA
Sun Sep 16, 2012
I always recommend that my clients save their money, if you are going to rent you will need first and last and some rentals require additional security deposit money depending on your credit and ability to pay rent.

You should be able to purchase again in years, make sure you repair your credit. That doesn't mean canceling all your credit cards, it means paying them. As long as there are no other derogatory things on your credit you should be fine.Talk to a lender now, or as soon as the short sale has been completed so that you have a better idea of what you can expect.

The bank can foreclose, your agent needs to make sure that the sale date is postponed as you are working with the process. There also is a new law which doesn't allow the bank to foreclose if they are working with you on a short sale or a modification that most banks follow even though it doesn't go into effect until next year. But again make sure your agent or you follow the sale date.
Web Reference:  http://www.dianam.com
0 votes
carlos parra…, Other Pro, Monrovia, CA
Sun Sep 16, 2012
Yes, the bank can foreclose if you make no payments and you are unable to consummate a short sale or you don't claim bankruptcy.
Find a good agent to help you thru your short sale.
You can be a homeowner again, you just have to wait 3 years and you can start again.
Of course, try to save some money.
0 votes
Emily Knell, Agent, Huntington Beach, CA
Sun Sep 16, 2012
You better have a good listing agent for your short sale, one who has a 90% or better success rate. Meaning, the agent should be able to Prove to you that they've taken X amount of short sale listings & out of those, how many successfully close & did not go to auction or revert back to the bank.

Banks can & will postpone auctions many times to allow a short sale to go through, but you're agent MUST know how to do this. By now every Realtor out there can talk the talk about short sales, but still the majority of agents do not have a high success rate closing them.

You should stay in the house for as long as you can to save money during the short sale negotiation process & throughout the buyer's normal escrow closing period. Your lender is not going to NOT approve the short sale because you have some money saved.

I have recently closed short sales for homeowners who make over $500K / yr or who have had over $300K saved in the bank & we didn't even get the bank barking about it or demanding 'cash contributions'.

You're not 'screwed' to buy a home again, but be good & stay on time with all of your other creditors after the short sale, then you will be able to purchase again & build up equity from the 'bottom'.

Save my info: If you ever get to a point where your agent is telling you "the bank just won't accept the short sale & it's going to go to auction or foreclosure", Call me, I can probably save the deal.

I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like to talk about this further.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Sun Sep 16, 2012
You should save your money and plan to rent for the next two to three years if you are behind on your payments. After that you will be able to qualify for an FHA mortgage and buy once again. And, yes, it is true that the bank can still foreclose if the process takes too long, however, most banks would much prefer the short sale to a foreclosure. They will probably get more money for the house, especially if you continue to live there and it will cost them less money to pursue a short sale than a foreclosure.

You should look your home up on http://www.makinghomeaffordable.gov to see if you qualify for a HAFA short sale. If you do, the bank may pay you to stay in the house until closing in the form of relocation money. Also, they will not be able to foreclose. If the process takes too long they could ask you to sign the house back over to them by signing a 'deed in lieu of foreclosure' but your credit history will not show a full blown foreclosure.

Make sure you have a team working for you that includes a realtor and an attorney who are experienced in negotiating short sales and you should be fine. I know it's distressing but it's not the end of the world. An awful lot of people are in the same situation as you. You will be able to buy again. Hang in there.
0 votes
Nick Socha, Agent, Los Angeles, CA
Sun Sep 16, 2012
You sound like you have alot of questions and concerns. I'd be happy to discuss them with you.

Give me a call @ 310-647-7785

Nick Socha
Century 21 Amber Realty
310-647-7785
#01831474
0 votes
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