[5-DayForum] How do I avoid selling at a lower price? Can I cheat a bit ?? Your book says NO....but I am so afraid

[Karen Bumgardner]

Hi Elaine,

I am a real estate professional in Oregon.  There are countless  
homeowners in your situation.  So many people have refinanced their  
homes only to find that they now worth less than what they owe on the  
houses.

You do have an option to sell your house for market value, even if it  
it may be under what you owe.  It's called a short sale.  This has  
nothing to do with the 5 day forum, but there is no reason that you  
can't use the 5 day system to sell with this method.  In a short sale,  
your lender will accept less than what you owe because they do not  
want you to default on the loan.  In other words, they would rather  
take a loss on the $500K loan and have it paid off than to have you  
stop making payments.

Here is how it works.  Let's assume that you owe $500K.  Someone at  
the 5 day auction offers you $450K.  You accept the offer contingent  
on a "short sale" with the lender.  When the lender accepts the offer  
to pay off your loan at $450K, the new buyer gets the house, and you  
get to move on and look for your next home.  In some cases, there may  
be tax implications, so talk to your CPA or attorney.

Feel free to call or email me with questions.

Best,


Karen Bumgardner
HomeFlex, LLC
541-350-1599
karen at home-flex.com
http://www.home-flex.com

On Nov 25, 2007, at 9:14 PM, elaine thomason wrote:

> Hello  Mr Effros,
>
> You seem   so confident in reading  your   book.  I am not so.
>
> I am afraid to do this the way you say.  I have the 3rd edition
> Advertise at  50%  of  value ????  It kinda does  make sense  but it
> scares me to death and all my friends think I am crazy without a
> backup plan.  I know it will bring in trailor ...type people  even
> though my house is worth about 500,000.00   or a bit  more
>
> I have always been one to do right from wrong  and  I am so confused.
> it's frightening  I have  a wonderful happy home   well landscaped
> etc.   Light & airy on the inside and it's a party home.   We were a
> happy family in it  for  years...  we bought low 8 years ago and
> borrowed money about 2 years ago on a second mortgage  a   Heloc  I
> guess....  and now  they are telling me  its  worth less than  I have
> mortgaged  how can that be?
>
>        Do I have to sell to the highest bidder  or  can I cheat?
> (somehow even a little )   I am really afraid as  I owe a bit more
> than my bank mortgage .  about 5,300.00    and I  know  I can't
> afford a realtor  ///    I already know  that   even though they said
> sign  here on the listing agreements.
>
> They never told  what they would do for me  and if  I would come out
> whole     or a bit under..  I hate them  ( the agents) they seem only
> interested in the listing    that's  it.  I know  this is petty  but
> it's my future and my life.
>
>   I interviewed  4 of the best in Raleigh they all had different
> opinions and all were below what  I owed   I am afraid to face this
> alone   .....    what  should  I do?
>
> I live  in  NC  the   Triangle area which is a  great place to live my
> kids go to the universities in our area        ...and I am  deathly
> afraid as   my husband left me 5 months  ago and its up to me  to sell
> the homestead.
> Should I just go ahead and do it  by the book and take my odds  or can
> you recommend a consultant in my area to assist me ?  Thank you Mr
> Effros.
>
> Elaine  T
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