Does A Short Sale Make Perfect Sense If You Are About To File For Chpt 7?
I have decided to declare Chapter 7. I'm already late on both my 1st & 2nd.... and my payoff amounts are $260K to the first, $40K to the second, and $7K in property taxes due 1/31/05. (Total of $307K). The property values have dropped in Austin, but even so my fair market value is $315K in it's current shape.. (Last year it was $325K).
Option 1) If I sell the home using a realtor then I will have to write a check at closing, so I see no point in that..
Option 2) I could consider working with an investor on a short sale which begs the question on how to find an investor?
Therefore, if I can't afford to keep the home and I can't afford to sell the home, is a short sale a good way to go? ...Especially if I'm going to declare chpt 7?
PS
Were talking about a very nice 3400 sq-ft , 5 bdr, 5 bath, 4 car garage, built in 1994 in a large planed development area in SW Austin, TX.
Regarding your Option 1, you could actually sell you house using a realtor subject to Short Sale. Just find a realtor experienced in handling Short Sales.
Or you could do Option 2.
If you are filing CH 7, you should be safe from foreclosure, right? Why else file. But if you sell, can you collect your check for the profit after sale in CH 7? I would talk to your BK attorney.
Actually most short sales require that the home be listed by a Realtor in order to short sale..
You just have to find a Realtor fluent in short sales.[ Edited by Ruman on Date 01/14/2005 ]
I closed a short sale yesterday. I'm not an agent, the seller didn't use an agent, and it was never listed. It was never an issue of concern for the bank.
Homes don't have to be listed to do a SS.
I think you have short sales confused with REO's. Any property that is owned by the bank must be sold through an agent and listed. A short is completly different.
Experiences vary.
The trend is that the larger, national mortgage loan servicers to require that distressed property be listed with a licensed real estate broker as a condition of preforeclosure short sale. FHA, FNMA, FHLMC, usually are the standard bearers for loss mit protocol.
Banks that service their own mortgage loans may not impose that criteria.... or firms that are sub-agents to mortgage loan servicers... these sub-agents or contractors have their own in house appraisal firms and conduct their own market research.... and don't rely upon the real estate brokers' involvement to make their decision.