Short Sale Experience

Hi L.,
My husband and I did a short sale last year and there was a lot of work involved. The lender (Wells Fargo) took an eternity to approve the offer. I think that if our buyers were not the tenants of the home they would have walked away because it took about 4 months for it to get through. I was surprised at how long it took. Also, I think that you MUST have a real estate lawer or you will not be able to get through all of the BS. Our brother-in-law is one so it worked out for us but I think that they are expensive given that it is a lot of work and the process takes so long. In the end it was the right decision for us and I think it is worth the work if the alternative is forclosure. Let me know if you have any specific questions, J.

What is a "short sale"????
maybe if you tell us, someone may know about this?

My husband and I have just decided to short sell our condo. The 2 biggest impacts are 1) to your credit and 2)to your taxes next year. The credit impact can be up to 200 negative points depending on your credit history. As for the taxes, you might have to pay on the amount that is "relieved" by the banks. You may want to check with your cpa to be exact..there are ways to get out of paying the taxes though. Good luck.

I think a short sale is a good alternative to foreclosure and if your lender is willing to work with you then got for it. Yes, it does take a long time and you will need both a good real estate agent and real estate attorney. But, in my experience it is the best way to walk away from a home free and clear. Also, it won't negatively affect your credit as much as a foreclosure would.

FYI: A short sale is win a lender agrees to allow a home owner to sale the home for what is less than owed on the orginial mortgage.

Hi L.,

While it might impact your credit some, if your house has dropped considerably in price since you bought it, it might make sense to just sell it off and "start over".
Keep in mind that depending on the bank (or banks) that you deal with, it could take a LONG time to get it approved.
Your best bet, if you decide to do this, get a well seasoned real estate agent in your area that are familiar with short sales (not just a real estate agent that you know) this is really a somewhat new area in the real estate field (well a couply of years now)and it is an important part of the whole process to pick the right agent!
Some agents will work with a 3rd party "negotiator", this will incurr an extra cost, but it might be worth it.
If you'd like, I can refer you an agent in your area. (I work South Bay - Torrance)
For those of you asking what a short sale is, it basically means that you sell your house for less than you bought it for - and that your bank loan is higher than what you can get paid for your house. As a result, the bank accepts this and writes off the remainder of the loan, rather than you ending up foreclosing it.
Have you also tried Loan Modification?
Good Luck!