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

[Karen Bumgardner]

Most banks will not consider a short sale unless you are already in  
default (have missed 3+ payments).  If this is the case, your credit  
typically takes a hit of 100 - 150 points.

Also, as Nancy said, in some cases, the lender may hit you with a  
deficiency judgement for the difference between the original amount  
owed and the sale amount.  There are ways around this... banks  
negotiate special deals just like everyone else.


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

On Nov 26, 2007, at 11:18 AM, Scot Burns wrote:

> Hi Karen -
>
> Regarding your recommendation for a short sale, how does this affect  
> your credit rating. Will the bank rep[rot this as a negative against  
> your record?
>
> Scot
>
>
>
>
>
> > From: karen at home-flex.com
> > To: writefromwrong1 at gmail.com; 5-dayforum at mailman.howtosellyourhomein5days.com
> > Date: Mon, 26 Nov 2007 09:05:51 -0800
> > Subject: Re: [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
> >
> > 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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> > >
> >
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