Skip to comments.Short Sales While in Foreclosure
Posted on 01/11/2011 4:04:44 AM PST by hsmomx3
I recently found a full time job after almost two years of not being able to find one but our home is scheduled to be auctioned in February.
I have heard different things and am not sure what to do.
My parents, who live out of state, want to buy the house with cash, free and clear, not for them, but for me and the kids so we have a place to live.
Is this possible? I have heard realtors say it is forbidden, while others say it could be done.
I have not notified the agency who has our home loan but I am trying to work out a modification with them which leads me going around in circles as many well know. I am trying to do whatever can be done to save my house.
I have never been thru this so I would appreciate any advice you can give me.
Oops..should read SHORT sales......
Bad idea. The bank will tie you in knots for the next year. Get out of the place, rent somewhere nice, have your parents buy a different place.
Unlike some on this forum I understand that the real world is a hard place. I'm sorry you got in trouble and I hope it works out for you. Always know there are better days ahead.
Any freepers who are realtors care to comment about this thread?
You can click on “Report Abuse” then ask the Moderator to fix the title for you.
Find a realtor who can get it done.
I believe they wanted to buy it before it got to auction. I would pay rent to them, though.
I am not even sure if that is possible—short sale prior to auction.
I have contacted five and they all refuse to do it and say it is forbdden.
It may be illegal in AZ, I don’t know. Having lost my house this year, I can tell you that the bank will tie any short sale up in endless paper if they think they make more money by buying it at the auction and reselling it. Get ready emotionally to move, and secure a lease before the foreclosure. My best wishes to you and your family.
Any freepers who have self-identified as realtors care to comment on this thread?
Clearly with your receiving a benefit of reduced rent (and living there after the sale) and your parents potentially receiving a financial benefit. I doubt it passes the requirements imposed by the FDIC.
Also don't forget you will likely receive a 1099 for the debt forgiveness.
Unless there’s some weird law in your state, a short sale is valid at any time. The problem is that most banks take the risk that it will bring more money at auction, and it’s their call. My two cents is that whatever dollar amount your parents are willing to pay, let them buy another property in your area, avoids having them have to bid at auction and may get more bang for the buck.
Can you comment on this thread, I saw that you made some very interesting remarks about short sales in this thread:
Short Sales: A Fraying Lifeline for Homeowners
Meaning: none of your friends, relatives or business associates can buy the property. Since they get to brand you a "deadbeat" for losing your job that would be considered underhanded.
If the alleged lender or foreclosure mill attorney wants it, whether or not they are the true party in interest would be fine. Same would apply to their friends and relatives. Since they represent the bank, and you signed something on the dotted line they are immune from any and all laws.
Be very careful what you sign and I wish you the best. The best thing for them would be you signing anything they hand you without competent legal representation. The worst thing for them would be filing a Quiet Title action forcing them to prove standing before proceeding to sale.
Taking on a Second Mortgage to Pay the Foreclosure
"If you do a little research...actuallly, study this foreclosure mess for more than a minute or two on CNN, you'll find that what they're doing makes sense.
"The legal system is gamed in favor of the banks, and unfortunately, the banks screwed up massively in the paperwork and have limited to no chain of custody of title to the properties they try to foreclose on.
"The idea is that 90% of the mortgages out there in the last 10 years are so full of legal holes, that a half assed attorney with a little time can get the bank to go away with its tail between its legs.
"They do a service to society by getting rid of liar banks with liar paperwork and return the house to the owner once the fraud is uncovered. They simply draft up an agreement that once the first mortgage is wiped out, or renegotiated, that the lawyer will be repaid for his and his legal staffs time for the work and court costs they incur in the process.
I know two companies which have been successful and making these things go away after a little courthouse work is done. wild times we're in...
12 posted on 11/07/2010 3:32:50 PM PST by 1st I.D Vet
Your parents should find a lawyer that deals in “short sales” The bank, however, may not cooperate with you. THe local bar association can point them in the right direction.
A fellow freeper needs advice in this thread, any of you care to assist her? OR know of any freepers knowledgable about short sales following foreclosure?
Apparently, IF there is a successful short sale to your parents, you will have to claim the money on your tax return as "debt forgiveness" ... OR something; sounds like a CPA and an attorney, as well as a realtor would be needed to confer with about the best option for you.