What happens if a short sale doesn't go through..?

Asked by swetha.krishnamurthy, Germantown, MD Tue Nov 6, 2012

We are thinking about a short sale as hubby is taking a job in another state and we have to move. If we go the short sale route, but if it doesn't work out for some reason (bank doesn't approve or cant find a buyer), is it possible to avoid foreclosure by paying the missed payments? I am thinking like taking a cash out from our 401K. I dont want to go through foreclosure.

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5
Jessica Hood…, Agent, Gambrills, MD
Wed Nov 7, 2012
Yes, you can avoid foreclosure by making up the missed payments. You can aslo attempt a negotiation with the bank to add the past due payments to the end of your loan so you can start fresh.
0 votes
Greg Myers, Agent, Gaitherburg, MD
Tue Nov 6, 2012
If your husband been unemployed and just found a job that forces you to relocate you can do a short sale with out missing any payments. One of the guidelines for short sales is if your work commute is more than 50 mile from your home a short sale can initiiated.

Greg Myers
RE/MAX Realty Group
0 votes
Bill Eckler, Agent, Venice, FL
Tue Nov 6, 2012
There are two people you should be spaeking with. First a real estate professional that can offer you input about your local market, home value, what need to be done to market your home, etc.

Secondly, you should be seeking the advice of an attorney skilled in distressed sales. From our experience, distressed sales that involve attorneys stand a much higher percentage of being successful.

Good luck,

Bill
0 votes
Suzanna Wood…, Agent, Springfield, VA
Tue Nov 6, 2012
I agree you most likely will get approval for a short sale on your property. If you have money available in your 401k you may have the option of avoiding a short sale or foreclosure. I would love to help you look at your situation and see what might be best for you at this time. Another option might even be renting the property out until you sell it. Feel free to contact me with any questions you may have. My cell is 410-227-1857.
0 votes
Martin Macis…, Agent, South Portland, ME
Tue Nov 6, 2012
I am 100% certain that you can get your short sale approved, if you are willing to make a contribution.

The main reasons that short sales "don't get approved" are :

1. Listing agent doesnt price property accurately
2. the appraiser values the property too high and the bank counters the buyer
3. Buyer walks because it takes too long

Your bank may offer an approval but ask for a contribution to the loss, ie a Promissory Note or a cash payment.

If all else fails, you could do a Deed in Lieu, but I would recommend...find a short sale expert in your state, you should be fine if you have some cash to contribute (if needed)
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