short sale possible of house is on the market?

Guest 0.10 Dollars($)

hello, i have been reading about short sales and was wondering if i put the house on the market (with a realtor) for a few months and it does not sell, is a short sale possible with all the fees and fun stuff that the realtor is going to charge me? or does a short sale have to be between two private parties? i really think that a short sale is going to be my only way out, and in the best intrest for both me and whomever buys the house. (it is largely in disrepair and when i bought it all the problems were hidden, known about but undisclosed, thus making the purchase agreement false and whatnot but cant get an attorney to represent me to save my life.)
my loan payoff is 48,000 but i would say i'd be lucky to get 25-30,000 out of the house as it sits right now. (that is just my opinion, i havent had it appraised yet)
i just get my hopes up because ive seen houses in worse shape selling for more than 50,000 about 10 miles from my house, but with my luck i dont know if anything will happen for me. im just stressed out and cant get answers Crying or Very sad

Guest 0.10 Dollars($)

its me again.. i just thought of something, i got an FHA loan and have already called my mortgage company and they said that my loan is "assumable" but with some hefty fees and usually a long wait until it happens. they said i need to write a letter and so does the person intrested in the house explaining why we want to 'swap'. i dont think this will be an issue, considering because of work i had to relocate about 4 hours away from the house. but i have been unable to find a lot of information on just how the "assuming" of a loan works.. is it really just that easy to fill out some paperwork and swap names on the bill?? man i hope so!!

Guest 0.10 Dollars($)

You can go for a short sale but are you aware that you'll have to pay the deficiency amount in case your lender files a judgement?

jameshogg · Posted: Thu Mar 13, 2008 5:15 am Post subject: RE: assumption or swap

Well, what your lender is saying is, you look out for a seller to purchase your house and he'll also assume or take over the loan. But frankly speaking a swap is somewhat different from assumption as i understand. And, are you ok with waiting till you get to swap with a buyer?

By the way, if you'd like to know about mortgage assumption, please refer to the page with information on the topic.

Thanks

Guest 0.10 Dollars($)

mac- i read a little about having to pay the deficiency, and i am going to make a appt with some legal advisors on the subject. i am not sure if the amount i would be paying would be worth doing the short sale, or if i should just put the money towards the loan itself thus lowering the price i can sell it for. but all of this depends on if i can even get any extra money (another loan)

james- i can wait for about 6 months to 1 more year until i may be in trouble financially. i am living paycheck to paycheck right now and can pay all my bills it is just extremely uncomfortable living this way. but i can wait so i guess that is a good thing in this case. i read the information you posted, thank you! it answered some of my questions. it seems an assumption would be much easier especially if the person intrested in the home is already qualified for a loan, because the loan i got was pretty good i think for 0$ down. (50,000 30 yr with 6.5%fixed at age 18 with okay credit, 3 years ago) so hopefully someone would want to assume.

one thing to note also, i have not been late on any of my payments so i would assume my credit is pretty darn good! so maybe the short sale is out? i guess i just need help feeling out some options before i have to make a drastic decision in a few months

Jessica

Hi guest,

I've read through your entire situation and what I feel is, if you can wait for some more time, and then you find a seller with whom you can swap the house, it's worth going for. In fact, a swap may be better than assumption because the concept of a swap is, "You buy my house and I buy yours".

What will happen in a swap is, the seller of a property would be buying your house and taking over your loan while you do the exact thing with his property and loan. It's not like a seller buying and taking over your loan. So, both of you benefit and that's the reason it may seem to be a better option for the seller. However, I think the lender servicing the seller's loan will have a role to play when it comes to your accepting the seller's loan.

If you can wait for 6 months, that's ok but see that you don't wait till you are financially exhausted. That's not a fair idea.

It's not that assumption will be easier – it depends on the situation and on the market. But yes, the person assuming a loan has to qualify for it, at least he needs to have the creditworthiness or else the lender would not allow for it.

Don't just assume that your credit is good. Take a look at your credit report from "http://www.annualcreditreport.com/" and confirm it if you haven't gone through your report since the past few months.

Regards,

Jessica.

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