Asked in MortgagesHome Equity and RefinancingForeclosureAdverse Possession
Home Equity and Refinancing
What do you do if a bank refuses a short sale offer?
October 06, 2014 10:59PM
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.
Asked in Sales and Customer Service
What are the short sale ramifications?
Asked in Foreclosure
Who can do a short sale?
The bank has accepted my offer in a short sale. How long until the sellers move out?
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.
What is subject to bank approval mean in real estate listings?
It means the bank has to "approve" the selling price before the property can be sold. The bank reserves the right to say no to any contract for purchase - even after the seller has accepted an offer. Usually means the property is a short sale or a foreclosure. Example, Mr. Buyer offers $500,000 for a house that is for sale. Mr. Seller agrees to the price and signs the contract. That contract goes to the bank for approval. The bank says No, we will not accept $500,000, we want more. Mr. Buyer and Mr. Seller now cannot go through with the sale of the house at the price of $500,000. Mr. Buyer can up his offer and try again, but the bank has to "approve" the selling price before the house can be sold. No bank approval, no sale.
Asked in Housing Associations
When one makes an offer to buy a home that is in short sale and the current owner owes a balance for failing to pay his homeowners association dues who is legally responsible for the debt?
Properly, the association could have filed a lien on the title against the original owner before the assumed bank foreclosure. Once the bank assumed ownership, and for the duration of their ownership, the bank is responsible for assessments. Your short-sale documents should be clear about your obligation -- if any -- to pay any past-due assessments, and/or how those monies can be deducted from the proceeds of the short sale. Without a clear paper-trail as to your obligation, you may not be responsible for past-due accounts. Your personal common interest community attorney will be best prepared to review your short-sale documents and advise you.
Asked in Foreclosure
Is there any money to be made for the seller in a short sale?
No. A short sale is a sale that doesn't bring in enough money to pay the amount owed on the note. (It is sometimes loosely used to describe a sale that brings in less than price asked for a house.) A short sale most often occurs when a homeowner is confronted with foreclosure. The homeowner asks the lender to accept a buyer's offer for their house that is less than the amount owed on mortgage loan. Because the bank is taking a loss, there is no way that a seller is going to make any money on the deal.
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.
Is a short sale better for your credit than a voluntary foreclosure?
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.
If you accept an offer of a sale but are unable to establish a letter of credit with the bank have you broken a contract?
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.
Asked in Foreclosure, DIY Projects
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.
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.
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.
What is a short sale?
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.
Asked in Foreclosure
Do you have to have a buyer in order to do a short sale?
You would eventually need to have a buyer in order to complete a short sale otherwise you would be applying for a deed in lieu. Your Bank/lender however will start the short sale process without a buyer, in some cases approve a purchase price range so that you have an idea what you need to be selling you home for.
Asked in Mortgages, Foreclosure
Will the Bank accept less than the homeowner owes if it is a short sale?
Can you short sale your house to your spouse?
A short sale must be approved by the lender. It will not approve your proposal. A short sale must be approved by the lender. It will not approve your proposal. A short sale must be approved by the lender. It will not approve your proposal. A short sale must be approved by the lender. It will not approve your proposal.
What is short selling property?
A short sale of real estate means that the property is sold for less than the balance due on the mortgage. In a short sale the owner has negotiated with the bank and the bank has agreed to discount the amount due on the mortgage by accepting the proceeds from the sale as full payment of the mortgage. In certain circumstances, the owner may receive a 1099 on the amount of the loan that was forgiven. That amount may be counted as income by the IRS if the property was not the primary residence.