i am upside down on my house,want to quit working, stay home w kids & and have no rent. how bad would it be to buy a mobile home and then short?

Asked by Tt, 91360 Tue Oct 20, 2009

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Barry Shapiro’s answer
Barry Shapiro, Agent, Camarillo, CA
Sat Mar 20, 2010
Hello Tt,
We have posted a plethora of information on our short sale website, aimed at providing the information Ventura County homeowners need to make a prudent decision on their future financial situation. About 67% (two-thirds) of all home sales in California last year, were distressed property sales. There are 100 homes in Thousand Oaks currently listed which are Short Sales. You are not alone. Find foreclosure help online and in the privacy of your own home. There is a new HAFA program rolling out next month, which will streamline the process and enable homeowners to both save their credit and avoid lender recourse after the short sale. Please take the time to do your research.
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Bonnie Sterl…, Agent, Simi Valley, CA
Mon Mar 8, 2010
Hi Tt, It's almost 6 months later and I am wondering if you would like to share with the Trulia community what plan you came to after all these comments and how that worked for you...since it is annonymous. I would be interested to know.
Web Reference:  http://www.ConejoLiving.com
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Joyce Zangme…, Agent, Thousand Oaks, CA
Fri Feb 12, 2010
Tt

So many people (in the past) did just this -- they bought a 'new' property and bailed on the 'old' property. That can't be done now.

Currently you would have to have approximately a30% equity position in your 'old' property before a bank is going to give you a loan on your 'new' property. The banks are aware of consumers doing a 'buy and bail.'

Otherwise the bank will want to see that you as the buyer can afford the payment on your 'old' property as well as the payment on your 'new' property. Not going to happen.......
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Barry Shapiro, Agent, Camarillo, CA
Thu Oct 22, 2009
Tt,
This is an excellent question, and my colleagues have given you some good advice.

I have several viable alternatives to discuss with you in a confidential manner. I have been saving people from foreclosures and offering solutions since the downturn spiral began in 2005. Ten minutes on the phone and you'll hopefully feel empowered with the knowledge you need to make the best choice(s) for your family's future. Thank you for reaching out for help! You are not alone.
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Ted Mackel, Agent, Simi Valley, CA
Tue Oct 20, 2009
Steve gave a great answer. To add to that when you submit your hardship package on the Short Sale Request they (the bank) will find out about your mobile home. They are going to send out an appraiser and 3-4 agents to do BPOs (broker Price Opinions) and they are going to find out the house is vacant.

Mobile home park qualifications for the space rent are sometimes more difficult to obtain than a loan. The park managers are in a tough spot if you go delinquent on space rent. You'll probably have to qualify for the mortgage and the space rent. No park manager is going to want to hear you are bailing on the mortgage, it will just make you look like an eviction risk at the park too. The park eviction is much tougher. You are going to get checked out by everyone.
Web Reference:  http://www.homebuysblog.com
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Steven Tustin, , Laguna Beach, CA
Tue Oct 20, 2009
The problem is the bank has to approve to sell your home short (less than the value of the loan) based on a consideration of your personal hardship (i.e. you got laid off, etc.) not something you voluntarily took on such as quiting your job. If you can still afford your mortgage payments its probably better to keep on paying on the loan and at least have a roof over your head even if you're upside down since more than likely property values will someday return.

Another option is to have a loan broker look into a loan modification to help reduce your monthly payment just remember to look out for the scams out there and never give anyone any money up front to do a loan modification for you.

If you can get the bank to sign off on selling your home short it will mean a hit on your credit of about 2-3 years where you'll be unable to qualify for a home loan and perhaps other financing like car loans, etc. If you walk away and let the bank foreclose on your home it's much worse at a 5-7 year ding on your credit. Also consider that employers and landlords tend to check your credit these days as well.

Additionally if you do a short sale on your home there is nothing stopping the bank from reporting to the IRS that the amount of the loan not covered by the sale of your home is now a gift to you and you may be responsible for the tax owed on that "gift."

Steve T.
Web Reference:  http://www.StevenTustin.com
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