Elkhunter7, Home Seller in Salt Lake City, UT

IM LOOKING TO SELL MY HOME. WITH THE MARKET AND SHORT SALES AROUND ME, MY HOME VALUE IS AROUND $50K BELOW WHAT I OWE. WHAT SHOULD I DO?

Asked by Elkhunter7, Salt Lake City, UT Mon Dec 5, 2011

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Micah Olson, Agent, Orem, UT
Tue Dec 6, 2011
BEST ANSWER
Good question. I have attached a web reference guide to this post. Make sure to read the FAQ's.

If you NEED to sell, than a short sale is the answer (unless you have $50,000 cash that you want to contribute to the sale). If you are looking to buy another home be very careful with some of the other advice given here. Income from rentals can not be counted into your debt to income figures unless you have over 25% equity in the home you were living in and started renting out. Values are not expected to rise to 2007 levels again for almost 20 years. If you have some discretion on when to sell you have a few more options that we can talk about.

Also, if you are current on your payments STAY CURRENT. Many agents will tell you that you have to be late to do a short sale. This does make it easier for the agent, but is not necessary. And if you go late, and end up with a Notice of Default being filed you will not be able to buy another home for 2 years (and then only with 20% down), or 3 years normally.

If you have questions about the effects of a short sale on your credit, ability to buy another home immediately, forgiveness of debt by your lender, guarantee of no future collections, bank process of a short sale, ability to rent out a home being short sold, taxes that could be owed on forgiven debt, or ANY other questions please call me. We can have a confidential conversation. I would give the answers here, but they depend on your situation.

The main thing to do is have a conversation with a competent, CERTIFIED, short sale negotiation agent, which I am. Do not work with an agent who is doing this on their own. You need an attorney overseeing the file. Ask any agent that you talk to if they are qualified to give legal advice regarding the sale, or if they have a team member who is.

Micah Olson
Founder, Utah Matters Coalition
Keller Williams South Valley
801-805-4900 (yes I text)
info@effectiveagent.com
0 votes
Shawn Ryan R…, Agent, Belleville, NJ
Tue Dec 6, 2011
pursue a short-sale or simply wait till the market gets better (no prediction on when that will happen). if you can afford to wait, then wait. if you can't wait, then pursue a short-sale and market the home at an extremely attractive price.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Dec 6, 2011
Elk,
You are in a situation so very many home owner find themselves in...you are upside down.

As suggested by Kristopher, every situation is different. There are many questions that must be answered and determining the best outcome for you can be complex and uncertain.

If at all possible, explore Kristopher's suggestion #5. Too often a home owner will not consider this option but you owe it to yourself to hear him out. This is a very viable option for any home owner who is facing the inevitable short sale.

Be aware however, most buyers will not allow themselves to be entangled with the uncertainty of a short sale. A quick close on a spotless home has REAL value. Call a pro with a multi-dimensional real estate practice and explore your options.

Best of success in selling your home.
0 votes
Kristopher F…, Agent, Salt Lake City, UT
Mon Dec 5, 2011
Hello,
There are a dozen questions that will change the way I might answer this question, here are a few to start...

1) What is the motivation for selling your home?
2) How soon do you need it to be sold?
3) Are you willing to bring CASH to the table?
4) Are you willing to consider a Short Sale yourself?
5) Have you considered offering the home for sale with a Lease option or Seller Financing?
6) Are you current on the payment, If so are you facing imminent default? If not how far behind are you?

There is a lot that goes into the valuation and marketing a home for sale in today's volatile market.

Please feel free to call me anytime to get information more specific to your needs.

Kristopher Furrow, REALTOR
-Associate Broker, CRS, ePRO

Windermere Real Estate - UTAH
Salt Lake City and Park City
2348 South Foothill Drive
Salt Lake City Utah, 84109
Direct: 801.999.8679
Office: 801.485.3151
Fax: 801.485.3152
Email: Kris@NOWShowingUTAH.com
0 votes
Clint Carter, Agent, Salt Lake City, UT
Mon Dec 5, 2011
You may want to consider doing a short sale yourself, however you need to understand the potentially negative side effects of doing a short sale: your credit will be damaged, you may have a tax obligation for the deficiency, and the lender may pursue or require the negative equity to be repaid or repaid at a reduced or negotiated amount. I can answer all of these questions for you in more detail through a personal interview and review. You may also consider a loan modification if it makes sense, it all depends on your long and short term life plans.

Clint Carter
PDS Real Estate
Short Sale and REO Specialist
1415 S Main Street
Salt Lake City, Utah 84115
801-651-8333
ccarter@pdsrealestate.com
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