U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 02-16-2013, 09:32 PM
 
29 posts, read 42,777 times
Reputation: 16
Question USDA-Rural Development short sale questions!

I bought my home through the USDA Rural Development program. I am now trying to sell it, it has sat on the market for almost 6 months, I owe $160,000 and it seems every other house in my block is going for a foreclosure or short sale, driving the worth of my home down. I'm just wondering if anyone out there has ever sold their USDA financed home as a short sale and what the process was like, and was the "short" amount fully forgiven? In general on short sales is the "short" difference amount fully forgiven?
Reply With Quote Quick reply to this message

 
Old 02-16-2013, 09:38 PM
 
29 posts, read 42,777 times
Reputation: 16
Question Short Sale Basics, Please help!!!!

I have researched and researched until I'm blue in the face and am still so confused when it comes to short sales. I have a USDA RD financed home and am looking to sell it as a short sale. I was told the first thing I must do it is get an appraisal. Got that scheduled! So then what happens? Do they approve me for a certain amount? Or do I have to re-list the home for the appraised value and find a buyer first, and then turn to them to approve or deny? And how long could that take? (Not to find a buyer, I know that differs, but from the time I get an offer until the USDA accepts it?) Please if you can give me any clear standards as to how the short sale process works, as in the sequence of events that take place from start to finish, it would be GREATLY appreciated! TIA!
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 03:15 AM
 
Location: Ocala, FL
2,064 posts, read 1,582,608 times
Reputation: 1519
First step is to talk with your lender, not getting an appraisal first.
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 11:26 AM
 
29 posts, read 42,777 times
Reputation: 16
My agent contacted my lender and they told her that we had to get the appraisal. The USDA-RD program is probably very different from a traditional mortgage holder/bank, which is why I'm so clueless as to what their specific steps are, many people have never even heard of the program.
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 02:15 PM
 
Location: Kailua Kona, HI
2,576 posts, read 5,482,490 times
Reputation: 2097
You must contact your lender first.

In my experience with borrowers, they will send you a number of forms to fill out and submit. There is a hardship letter, describing your situation, a financial statement, a 3rd Party Authorization (if you already have a realtor who will list it) among others. It all starts with the lender to my experience.

Go to their website and see if they have a link for "distressed" or "short sale". YOU contact the lender directly and go from there.

Write everything down including the name of the person you talk with each time, getting their fax# and email address Follow up every conversation with a summary as you see it, and email or fax it to that person.
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 02:18 PM
 
Location: Gorham, Maine
1,637 posts, read 2,473,420 times
Reputation: 1072
There is a difference in USDA RD Direct Loans and USDA RD Guaranteed Loans with a lender. I suspect you have the first one.
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 06:42 PM
 
Location: MID ATLANTIC
3,748 posts, read 7,479,392 times
Reputation: 2694
You need to consult with an accountant and an attorney. The accountant right away....The Mortgage Forgiveness Act expired 12/31/2012. I have not heard that it has been extended. What this means - if your payoff is short, say $25,000, your lender can do 1 of two things......file a judgment against you for 25K, or, issue you a 1099 for 25K (as income) so you can pay taxes on the amount written off. HOWEVER.....a USDA is an insured loan and the mortgage insurance will reimburse your lender for a portion of their losses, bringing that shortfall down.

Hopefully, you have an experienced agent in place, that has an experienced title company to negotiate the short sale. This is one time experience is everything.......the last thing you need is a rookie or a part time agent.
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 06:47 PM
 
29 posts, read 42,777 times
Reputation: 16
Thanks for the responses. I do have the Direct loan, it was 100% financed at 1% interest. I will be calling them myself Tuesday since its a 3 day weekend because of the holiday, but I'm just too impatient and thought I might find someone on here who's been through this situation and could help give me some insight as to what to expect. But my agent did contact them and they said get an appraisal. This agent isn't very good with communication and always seems in a rush and leaves me with unanswered questions and confusion.
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 11:00 PM
 
Location: Kailua Kona, HI
2,576 posts, read 5,482,490 times
Reputation: 2097
Quote:
Originally Posted by luvtwilight View Post
Thanks for the responses. I do have the Direct loan, it was 100% financed at 1% interest. I will be calling them myself Tuesday since its a 3 day weekend because of the holiday, but I'm just too impatient and thought I might find someone on here who's been through this situation and could help give me some insight as to what to expect. But my agent did contact them and they said get an appraisal. This agent isn't very good with communication and always seems in a rush and leaves me with unanswered questions and confusion.

Then try to find one with experience with your situation. Short sales are a royal pain in the okole even when you do know what you're doing!
Reply With Quote Quick reply to this message
 
Old 02-17-2013, 11:18 PM
 
Location: North Beach, Seattle
2,638 posts, read 1,773,054 times
Reputation: 1682
I've read about this program. My impression was most houses sold using these loans would drop in value and potentially face foreclosure.

Debt relief has been extended on short sales through the end of 2013.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $79,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top