getting a divorce need to sell home...Short sale is it the best way?

Asked by Brian, Summerville, SC Sun Apr 19, 2009

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13
Tony Camero, , Houston, TX
Mon Apr 20, 2009
I dont know the specifics of your situation but a short sale is when the bank accepts less than what the property is worth,,,trying to cut their losse.....If you are getting a divorce you probably just want the home sold fast, That just requres the home to be priced correctlly and marketed correctly so you get the most buyers possible looking at it and hopefully making offers ......at least one of which is close to asking price..
Web Reference:  http://www.camerohomes.com
1 vote
Leasing To O…, , Dallas, TX
Sun Apr 19, 2009
As some of the previous have "kinda" mentioned....there is not enough information provided here to provide an accurate answer. I have to agree with the advice that Dp2 mentioned. Great minds think alike once again.

Banks will basically not consider a short sale unless the payments on the property are 3 months late. If there is significant equity on the property or other assets which can be used to cure the issue, they won't do a short sale.

You have basically have 3 options:
1) Sell the property outright with either a Cash Deal or Terms Deal
2) Rent the property
3) Give up the property and receive a foreclosure

Obviously, #3 is the least effective method of getting rid of the property and not too many people would suggest/advise going that route.

There are many other solutions to sell your house:
Lease Purchase to a tenant/buyer
Wrap Around Mortgage
Contract for Deed
Giving it to a buyer "Subject-To" the existing financing

All of these examples are, of course, dependent upon you needing to get your cash out of this property to move onto another property. If you happen to have another place lined up to live, you may want to look into selling your house as a Lease Purchase (Seller Financing as Dp2 mentioned earlier). There are ALWAYS more tenant/buyers out there looking for a Lease-to-Own property than there are sellers offering them.

No matter what route you take, PLEASE find KNOWLEDGABLE people who can put the deal together for you, be it an EDUCATED Realtor, Attorney, Lender, Sophisticated Investor, etc so that it can be less stressful and more successful. I may even be able to help you or to point you to some people living outside of Charleston who may be able to assist you.

All the best to you Brian....

~Darin
Web Reference:  http://www.hhiinvesting.com
1 vote
Dp2, , Virginia
Sun Apr 19, 2009
A short sale might be good for you if your mortgage is upside down; however, if it's not, then you have other alternatives. If you're not upside down, and if your mortgage, property taxes, insurance, and HOA fees (if any) are all current, then you might consider selling your property using seller financing.
1 vote
America Foy, Agent, Berkeley, CA
Sun Mar 13, 2011
Hey Brian,

Short sales are the best option when you owe more than your property is worth to the bank or can no longer afford to pay your current mortgage because of a hardship. Divorce counts as a verifiable hardship when lenders consider accepting less than is owed for a property.

I would suggest you contact a local Realtor and get their opinion of your homes value before thinking about a short sale--who knows you may have enough equity in your home to both walk away with a little money at the end of the day.
Web Reference:  http://www.americafoy.com
0 votes
Sara Mehrpou…, Agent, Los Angeles, CA
Fri Mar 11, 2011
You may want to read the blog that I wrote on this topic for information: http://activerain.com/blogsview/2180098/divorce-separation-a…

Sara Mehrpouyan CDPE
Rodeo Realty
Direct: 818-903-2040
0 votes
Get-smart, , Durham, NC
Sun Apr 26, 2009
If you are behind on your mortgage payments or feel like you might fall behind and head to foreclosure, then your best option might be to short sale your house. If you don't have a lot of equity then you will more than likely need to short sale your house. The only thing about a short sale is you need an offer on the table for the lender to transfer your file from collections to a negotiator. Without an offer your file will stay in collections which they will continue to call you everyday.
0 votes
Dp2, , Virginia
Mon Apr 20, 2009
Darin (HHI Investing...), and Tony C are correct.

First, you need to realize that you have a trade-off between time and price, so you need to decide which of the 2 alternatives is more important to you. If you want to get the highest price, then expect the sale to take a considerable amount of time. On the other hand, if you want to sell fast, then you need to price your property like you mean business--meaning you need to discount your price enough (ie 15%-25% of its current market value) to ARREST the attention of any potential buyers.

Second, you also need to realize that most seller financed deals close with a minimal amount of cash. Although this isn't necessarily a problem for some, it might be a problem for you. If the latter is the case, then keep reading. You still have several options for receiving the bulk of your cash from a seller financed deal--even though you won't receive that lump sum at closing. I'll cover 2 of those options here. You could (work with a knowledgeable person [borrowing Darin's terminology] to help you) structure your seller note to have a balloon payment in certain period of time (eg 1 or more years from the closing date). Instead of waiting for the balloon payment, you could sell your seller note (or only a fixed number of payments) to a note buyer; this way you'll receive a lump sum of cash much sooner.
0 votes
Tony Abad, Agent, El Cajon, CA
Sun Apr 19, 2009
Brian,

All of the answers before me are valid.

Hope this helps!

TA
Realty World

TAofB@sbcglobal.net
http://www.TonyAbad.com
0 votes
The Hagley G…, Agent, Pleasanton, CA
Sun Apr 19, 2009
The site below will anser the majority of your questions about short sales...good luck!
0 votes
Jed Lane, Agent, Petaluma, CA
Sun Apr 19, 2009
Brian,

YOu do a short sale only if the proceeds from the sale will not cover what is owed. It has nothing to do with a divorce.
0 votes
Danielle Laz…, Agent, San Francisco, CA
Sun Apr 19, 2009
Hi Brian,
Are you in San Francisco or Summerville, SC? I'd recommend re-posting this question in the South Carolina real estate section so you get local real estate agent input.
Best of luck with your decisions!
-Danielle Lazier, San Francisco Realtor
Zephyr Real Estate
http://sfhotlist.com/blog
0 votes
Melissa Zava…, Agent, Escondido, CA
Sun Apr 19, 2009
If you need to sell your home, and you are "upside down" on your mortgage due to the divorce, a short sale would probably by softer on your credit than a foreclosure. However, since you are facing a divorce, you should probably look into how the short sale may impact your unique situation by discussing with your accountant or attorney.
0 votes
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