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A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties.
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∙ 9y ago
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How long does a shortsale show on your credit report?
A shortsale will report as Settled for Less than the Full Balance and will stay on your credit report for 7 years.
Can you buy home after short sale?
Yes you can buy a home after shortsale, remember your credit with be ok for the simple fact it will show you paid your debt of your home by doing a short sale.
What will happen if you are purchasing a home that is a short sale and the owner has not made the payments for the last 2 months?
Lenders have to be a 3rd party to accepting the Offer from the buyer on each Shortsale _AND they/the lender Pays all taxes to the day of sale__Pays all Homeowner Asso fees__and Approves your offer-doesn't matter how late the owner is.The Owner/seller has to get all the info the lender requires updated within 30 days or you cannot get an approval or close/buy that house...so the seller has to be cooperative or the shortsale will take forever.
How long do I have to wait to buy a house after a short sale?
Congratulations on your shortsale! It will take some time for your FICO to recover, but you should be able to obtain a loan in a couple of years. Pay all of your debts on time; start saving for 20% down on another house and get your financial house in order. Then, apply for a loan and see what you can do. Mind you, many houses for sale today have deferred maintenance, and you may end up spending several thousand to bring yours up to par.
Can the bankruptcy trustee try to shortsale your house before the stay has been lifted instead of letting the bank go through the foreclosure process?
Yes, but this is very rare. A Chapter 7 bankruptcy trustee will generally not seek to sell real property if the mortgage and other liens exceed the value. The Trustee's job is to liquidate assets for the benefit of unsecured creditors. If a Chapter 7 trustee were to sell a house that is upside-down, only the secured lien holder would realize anything from the proceeds, the trustee and unsecured creditors would get nothing. It would be an exercise in futility However, some aggressive Chapter 7 trustees have been known to try to force a short sale and/or stall a foreclosure in order to negotiate some sort of payment for the estate.
What if you can't afford the balloon payment?
Lenders do not want you to default on your mortgage. As with any other mortgage, in the case of the balloon payment, your lender will try to work with you to refinance your mortgage into payments you can handle. If you can't refinance, you may be forced to sell the property (unless the bank does it for you) to cover the balloon payment. Most people will be able to refinance, the question is just how high their rate will be. You do not have to use the same lender that your first ballon mortgage was with. Many lenders have programs for people with less than perfect credit. The only problem is your rate will be high, so you want to refinance as soon as you have a decent credit score to get a lower rate. If your balloon payment is coming due and you can not qualify for a loan because you owe more than the home is worth then talk to your lender about a shortsale or deed-in-lieu. If neither of these are available and a workout just isn't possible, it may make more financial sense for you to just walk away from the property.
How much does an apartment complex cost?
There is no one answer or even a formula that applies to all projects. The size of the project, the land costs, the materials for construction, the style of the building, the requirements in terms of planning permission and other variables will have a very big impact. There may be infrastructure changes required (streets, mass transit improvements upgrades for schools or other public requirements (a minimum number of units set aside for lower income buyers for example).
