Selling a house

anthracitedub · Posted: Sat Nov 19, 2011 1:31 pm Post subject: Selling a house

Anyone recently attempt selling a home. I know this is a bad time to do so, but we are in the beginning stages of house shopping and trying to put ours up on the market.

Our house is really nice, but we have out grown it with kids and stuff (VWs)
We still owe 87K, we have worked with a realtor and have gotten a market analysis..we are certainly upside down.

There are a couple of great potential houses that fit our needs, even the same school district, and of course they are selling far cheaper than what they are worth in a good market.

I kinda feel like it may be a wash if we sell at a loss and buy another house that the sellers are taking a loss on too…Im certainly not very hip on the buying and selling game of homes, but just wondering if anyone has had any recent experiences that they wish to share.

vwracerdave · Posted: Sat Nov 19, 2011 4:59 pm Post subject:

If your underwater to begin with you will never come out ahead by getting into another house.

Note. You are under water on a house. You are upside down on a car.
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NCdad · Posted: Sat Nov 19, 2011 5:35 pm Post subject:

Michigan market still down?
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my59 · Posted: Sat Nov 19, 2011 8:26 pm Post subject:

If you are selling at a loss you will need to be reading your mortgage carefully to see if you can really walk away.

Short sale can be a problem, especially if there are acres of like houses in the same position.

Jumping sideways to another house "bargain"? Bargain compared to what? Better have a pile of cash cause getting another mortgage after walking away is going to be pretty hard. Dumping a depreciated asset might seem like a good idea, but where you going to live (at what cost) in the meantime?

With kids and projects it sounds like you are not going anywhere soon- perhaps its time to stop thinking of the house as a bank you can draw on, make improvements to deal with the space issues, and look long term.
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timo78 · Posted: Sat Nov 19, 2011 11:19 pm Post subject:

If you sell at a loss the bank may or may not pursue you for the loss. If they don't pursue they will instead ding your credit for the unpaid loan shortage amount. This shortage will be reported as income via 1099 at tax time. But this "gain" can be diverted if you use form 982, which is only available until end of 2012 as part of the mortgage forgiveness act.
Guaranteed two year wait before you can buy another house after a short sale, regardless of your credit score afterwards.
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The Sage · Posted: Sun Nov 20, 2011 5:01 am Post subject:

I just had a friend in Arizona sell his home short sale and the bank did not report to his credit agency. His lawyer negotiated the terms of the sale and the bank agreed that a walk away would reduce the selling price by 40% so they agreed in advance to his terms.

Get a lawyer and talk to your bank about options. It's worth the $500 to see what can be done.
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anthracitedub · Posted: Sun Nov 20, 2011 5:54 am Post subject:

Well, were going to go to the bank Monday to see what are options are and at least begin the process and discuss our options. We have been wanting to do this for a couple of years. I have done tons of work to my current house to make it more enjoyable to live in, but when it all comes down to it….we need more space to live in and we also wish to move up in class…some of our neighbors are just pretty sad to say the least.

Sage, I like the lawyer deal…that may be the best bet for sound advice. Thanks to the others for your input also.

60ragtop · Posted: Sun Nov 20, 2011 7:43 am Post subject:

Gary · Posted: Sun Nov 20, 2011 8:03 am Post subject:

Image may have been reduced in size. Click image to view fullscreen.

Problem solved.
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bugninva · Posted: Sun Nov 20, 2011 8:58 am Post subject:

mgamike · Posted: Sun Nov 20, 2011 6:59 pm Post subject:

That's funny. My mom's boyfriend's mother (yes this is really true) had a home in Detroit several years back. He tried to sell it and since I was in real estate, he asked me to see what I could do. I knew an investor and told him about it. "It's a 3 bedroom vinyl sided home on a crawl." (crawl space for those who don't know)
His response, "It's on a crawl? It'd be better if it were on fire."
It never did sell. If you're in a bad location, you are in a bad location and location is what sells homes.

G-wood Todd · Posted: Sun Nov 20, 2011 10:48 pm Post subject:

I am going through a similar situation. We bought our home right at the peak at $425,000. We currently have a contract for a short sale at $225,000.

We decided to sell for a few reasons.
1) We can currently rent a similar house for about $1000 a month less than what we pay for our mortgage.
2) The bank was unwilling to work with us on a loan modification.
3) It may take 10 years for us to break even with our current house and adjustable ARM.

We don't care if our credit score drops dramaticly and we also know that it will take a few years to qualify for a new home loan.

We have done a lot of research and have the right people who know and understand the process.

It is to my understanding that we can be responsible for the difference owed and the bank may or may not come after us for the difference. There are ways to short sell and not be held responsible for the difference. The bank does have to agree to a forgivness of the difference owed with the short sale. When the time is right we will have a competent lawyer look over all paperwork to make sure that we will walk away free and clear.

It is our intention to short sell our house and walk away free and clear. We are also prepared, as a last resort, to forclose on our home and forced into bankruptcy.

Educate yourself and ask if by walking away will create a better future for you and your family. Good luck and know that you are not the only one in this situation.
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vwracerdave · Posted: Mon Nov 21, 2011 7:18 am Post subject:

Nobody should be allowed to walk away from any debt they entail. I'm loosing money on my stocks and retirement investments because you are walking away from a $200,000 obligation. I don't even know you and I'm paying for your selfishness.
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60ragtop · Posted: Mon Nov 21, 2011 7:40 am Post subject:

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Lahti35 · Posted: Mon Nov 21, 2011 11:01 am Post subject:

rusty57 · Posted: Mon Nov 21, 2011 12:35 pm Post subject:

We owe what our home is worth at the moment. We also are outgrowing our home. We are looking to probably rent our current home and buy another one. The thing is that my income will only qualify for a home exactly like ours. We can't use rental income as income for 6 months. So, we are gonna bid on short sales and wait it out. Time is on our side, so short sales are ok with us.
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zozo · Posted: Mon Nov 21, 2011 2:02 pm Post subject:

If someone says, "I can sell you a brand new $1500 50" LED television for $5 a month" you don't do it because it "would take forever to pay for it, especially with the interest". Duh.

If someone says, "I can sell you a brand new $300,000 home for $600 a month" people suddenly get stupid and start signing papers and applying for credit cards to furnish it so they can impress their friends and family. All parties concerned deserve condemnation. The fact that the rest of us are paying for it is.....sadly.....the new American way.

Common sense rarely, if ever, made an appearance in the making of the whole damn mess.


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