Home Selling in Doraville>Question Details

Doglover, Home Seller in Doraville, GA

Short Sale Blues I am in the process of a short sale. i was out of work for 3months, but i amonly 1 month behind in terms of my mortgage. As i do

Asked by Doglover, Doraville, GA Mon Nov 23, 2009

have some financial strain i am extrememly capable of affording my home. i owe 280,000. At last check in May of 2009 it was valued at 240,000. i have been in the home since July of 2009. I do have a potential buyer who has offered 185,500. I have a few questions. How will the bank expect me to make up the difference in "owed/sold for" if this offfer is accepted? I have been told it would be handled via my taxes/1099 form. How will this effect my credit? i am sure adversly, but remember right now my credit is good. How long will it take for me to be able to make a large purchase like a home with a "short sale deliquency" on my credit? Now i will say again i can afford the home. I just see a potential out in a HORRIBLE market thatdoes not have a sign in terms of time to recover. The potential out obviously has a steep price to pay which is my choice, any opinions on "is it worth it"? Thanks.

Help the community by answering this question:


Doglover, What did you decide to do? Did you have a real estate agent give you a market evaluation of your home? It might be a good time to re-evaluate where you are vis a vis your mortgage balance.
Web Reference: http://englishteam.com
0 votes Thank Flag Link Sat Dec 3, 2011
The previous answers are good and correct. However, I am not sure your real question got answered. I recomend a seller's consultation to determine your needs and wants. I am a certified Distressed Property Expert (CPDE) and like a lot of agents your situation is very common and the answer to your question will depend on your individual situation. If you are interested in a "seller's consultation" please call me at 404-441-4400 or email me at scottsmithsr@kw.com.
0 votes Thank Flag Link Mon Aug 23, 2010
Kudos to Stephanie for her "nail on the head" answer. Your hardship was short lived and over. You should be grateful that you are not experiencing the type of hardship that banks require for a short sale.

To answer your other question: yes, the bank can seek a deficiency judgement against you for the balance owed. They can also release the lein but require you to liquidate other assets to pay all or part of the deficiency.

Loss of equity is not considered a hardship. Keep your good credit and stay in your home.
0 votes Thank Flag Link Wed Feb 17, 2010
I would question the buyer offering the price that is almost $100,000 less than what you paid in July 2009. We have not had that kind of depreciation in the Doraville Market.

Is your home for sale at present. Have you been actively marketing your home? Have you done anything more than put a sign in the yard and maybe put it in mls.

So many sellers are treating the sale of a home like a garage sale. It takes some effort and know how to get a home sold in this market BUT......homes are still selling.
0 votes Thank Flag Link Wed Feb 17, 2010
My "financial hardship" was in the time period when i was not working. i have been back to work no for about 3 weeks. Will the back look at the updated circumstances, meaning bank statements prior to the agreement being officially approved? As far as my living conditions i work from home and my fiance' is in another state. We can't necessarliy afford two mortgages and are not looking to rent, b/c he lives on the west coast and it would be extremely hard to management a rental property. I am cautious in regards to my credit, b/c once married we will purchase a new home which would require a good score on both our parts.
0 votes Thank Flag Link Mon Nov 23, 2009
Your question is typical of what we are seeing in the market - alot of confusion about what a short sale is really all about.
First, if you are extremely capable of afffording your home you have your answer to all of the other questions - you probably don't qualify for a short sale.
In order to entice the bank to work with you on a short sale, the seller must prove hardship. Basically all of the financial information that you would provide if you were applying for a loan will be required by the bank to make a decision about your hardship.
No hardship, no short sale. The banks expect us to honor our contractual obligation when they loan us money for a car or a house. Cars aren't worth a toot once you drive off the lot but you we still buy them and we are expected to pay the full amount of the agreed purchase price.
It's the same with a house - you agreed to pay and there were no contingencies in your loan documents for loss in value.

Why would you want a potential out? You bought the house for a place to live - doesn't it still serve that purpose?
We have all lost equity in our homes, but, just like it has always been in the past, this market will turn around and prices will begin to go up again.
Web Reference: http://www.mysouthhomes.com
0 votes Thank Flag Link Mon Nov 23, 2009
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