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In most cases MIP will take the hit on the loss, or they will apply for some stimulus money...
Only banks that had portfolio loans really take the hit, now rules have changed banks will be more responsible for their loans because of a loss share agreements that have been put in place.
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Will it affect my credit if I short-sale a house that I own but do not have my name on the mortgage?
To conduct a short-sale transaction, the bank(s) holding the mortgage(s) have to agree to a short-sale. If your name is not on the Mortgage, technically you don't have a right to conduct a short sale. Even if you "own" the house (which will be in question during the entire process), the holders of the Mortgage note(s), typically banks or finance companies, actually have primary ownership of the asset (the house). If you are able to complete a short-sale, even though you are not on the mortgage note, as an owner the bank holding the note may ask you to take partial responsibility for the difference between sale price and mortgage value, or even to put in equity immediately to avoid a short sale situation. If this occurs, and you cannot pay, you will end up with a debt and a schedule to pay that debt. Adding any debt will negatively affect your credit score.
Will I have to pay the shortfall of my mortgage after a short sale?
In one way or another you will be responsible for and money in a short sale of your home. If you do not have the cash at the sale closing, I doubt you will be able to provide a clean title insurance policy. Without that, you will not be able to sell your home. If this is a different type of sale, other than a conventional mortage by the purchasers, the bank will come after you for any and all short sale. I know this is not good news... but the bank will want it's money... Sotty Addition by Soxos, They have 12 years in England to get the debt from you, and 5 years in Scotland.
What is better a short sale or a foreclosure?
A short sale is always better. I will tell you why very definitively. When you purchase a home on a short sale you are helping a homeowner salvage their credit and dignity and helping them out of a bad situation. You are also preventing a large loss for the bank and getting a great deal for yourself. Everyone wins if it is done correctly. A foreclosure will have a very bad effect on a homeowner's credit and the bank will in most cases take a bigger loss than they would in a short sale. A sellers credit in a short sale will be damaged to a lesser extent than a foreclosure. In most circumstances if you have done a short sale you will not be able to get another loan for two to three years. In a foreclosure it is usually around five years before you can purchase another home.
Foreclosure vs short sale?
Ultimately the impact of a foreclosure to your credit rating and ability to borrow in the future is reason to choose the short sale over the foreclosure. Lenders will look more favorably upon a potential borrower that tried to work with the bank (via short sale) opposed to one who just walked away. The short sale process, when handled properly, can even result in a favorable narrative on your credit report, which will minimize the impact to your score. When looking for a short sale specialist, I suggest you make sure that agent has a trained mitigator that will negotiate with the bank on your behalf. Also, the agent you choose should have experience in the short sale market. Hope this helps! If you need more information or have other questions, just ask.
Will the Bank accept less than the homeowner owes if it is a short sale?
It depends on the policies of the lender. You will need to have a conversation about the difference with them.
What do you do if a bank refuses a short sale offer?
If a bank refuses a short sale offer, you can only make a new offer to the bank. Your real estate agent will be able to give more details about the short sale process.
Where can I find a price on a short sale?
Many realtors will sell a house as a short sale. However a short sale has to be approved by the bank first.
Do you have to pay your mortgage when you short sale your home?
From what I understand the bank has to agree to the short sale and then takes that as the mortgage paid.
What are the short sale ramifications?
A short sale incurs a loss for the bank or other institution that extended the loan to the homeowner. Therefore, the homeowner must negotiate the terms of the sale with the bank before attempting to sell the property. There are a variety of consequences for the owner of a short-sale property.
What happens to your credit on a short sale?
A short sale will have a detrimental affect on your credit record but not as bad as a foreclosure.
Will it affect my credit if I short-sale a house that I own but do not have my name on the mortgage?
To conduct a short-sale transaction, the bank(s) holding the mortgage(s) have to agree to a short-sale. If your name is not on the Mortgage, technically you don't have a right to conduct a short sale. Even if you "own" the house (which will be in question during the entire process), the holders of the Mortgage note(s), typically banks or finance companies, actually have primary ownership of the asset (the house). If you are able to complete a short-sale, even though you are not on the mortgage note, as an owner the bank holding the note may ask you to take partial responsibility for the difference between sale price and mortgage value, or even to put in equity immediately to avoid a short sale situation. If this occurs, and you cannot pay, you will end up with a debt and a schedule to pay that debt. Adding any debt will negatively affect your credit score.
Does homeowner of a short sale have to take bid that meets bank price?
no
How do you propose a short sale?
You contact the bank's loss mitigation department and tell them that you want to start a short sale. You also request their requirements for a short sale and ask them how the process works. It is best to be honest and up front with them and ask questions. The bank wants to avoid foreclosure and will make every effort to do so.
You are selling your flat but your mortgage company want to repossess your flat - what are your rights?
I do not have the complete answer because it varies accordingly to county, state, federal and banking laws. The only thing you can do is request a short sale from the bank, but I suggest you hire an attorney and a Realtor experienced with a short sale. A for sale by owner, or a reduced commission broker/exclusive listing will only delay and stress the sale. The only short sale a bank will accept has to be perfect and quick.
Can a short sale contract be cancelled before bank approved?
Yeah, I think so man.
What is difference between foreclosure and short closure of contract?
A short closure of contract is typically called a short sale. In a short sale, the owner works with the bank to sell the property at a price less than the market value. The goal is to get as much of the loan paid as possible. The owners owe the bank the difference between the sale price and the loan amount whereas in a foreclosure the buyer just walks away and owes much more.
What is house short sale?
In the real estate industry short sale initiates when the borrower is in financial crises and unable to pay the mortgage amount. In case of a short sale, property is sold to a third party (not the bank) and the proceeds from the sale go to the lender. After the sale of property the lender can opt for recieving the diffieciency amount or may forgive it. In many states is hould be forgiven leagally.
