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Old 07-24-2008, 02:12 PM
 
109 posts, read 486,627 times
Reputation: 39

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I'm in a pickle here and really very confused about the way things are going se here goes my short story:
1.- I bought my house in 11/07, 100% FHA with 3% builder assistance, (Flagstar lender) 6 1/4 % fixed 30 years. Monthly payments are in check so I have no problem there so far. Never been late and I'm current on my payments.
2.- Company that I work for lost a contract with the company they were doing business, that is going to affect me since now my income will be reduced considerably, about $8.88/hrs short and probably will get less work hours.
3.- Started to look for a new job, got a job offer from an out of state company and they are asking me to relocate to a new city. they will pay all relocation expenses including the closing cost of the sale of my house and 1/2 of the closing cost if I purchase a house with in a year.
They have asked for a BMA analysis to 2 Real state agencies, after that they sent to me their Realtors, both of them have said to go with a short sale and seek legal advice from Real State Attorneys.

Called the Attorney and said they will explain to me the consequences of the short sale and everything related, their time cost $400.00 per hour (HA!!) like if I have so much money!!.

One realtor sent me his contract but there are some clauses there that I don't know if they are legit for example:
A.- there's no expiration date of the contract.
B.- Compensation to the Broker: 7% 8% 9% 10% (circle one of the following)<<<<< what??? do I choose how much to pay them?..
C.- if I the Seller refuse to accept an offer in accordance with the price and terms of the agreement, broker is authorized to collect said commission <<<is this valid?

Does this contract sounds normal to you guys? or are they looking out for them self?

Last but not least what options do I have in regards to the short sale????

Thanks.
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Old 07-28-2008, 12:04 PM
 
43 posts, read 189,810 times
Reputation: 32
Not sure what state you're in, but that is key to answer your questions. I'm a real etate agent in two states and both states work like this:
You negotiate the compensation with your broker, it can be 20% If you agree to it.
You must have an epiration date.
If the listing agent finds a buyer at the listing price and you do not accept, the list agent can sue for the commission.

As for short selling, again, it depends on your state. In Nevada, if your lender agrees to a short sale, you are in the clear. It will be reflected on your credit report, but not as bad a hit as foreclosure. I'm guessing you didn't take any equity out in a second mortgage or heloc and this was your primary residence, so even if you are foreclosed no deficiency judgement per the housing legislation signed into law last December.
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Old 07-28-2008, 03:46 PM
 
109 posts, read 486,627 times
Reputation: 39
I'm in Las vegas, I did not took out any equity, only one mortgage and it is my primary home.

I'm current on my payments, can they go after me for the diference amount between what I owe and what it is sold for?
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Old 07-28-2008, 06:30 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,192 times
Reputation: 908
Quote:
Originally Posted by coolricks View Post
I'm in a pickle here and really very confused about the way things are going se here goes my short story:
1.- I bought my house in 11/07, 100% FHA with 3% builder assistance, (Flagstar lender) 6 1/4 % fixed 30 years. Monthly payments are in check so I have no problem there so far. Never been late and I'm current on my payments.
2.- Company that I work for lost a contract with the company they were doing business, that is going to affect me since now my income will be reduced considerably, about $8.88/hrs short and probably will get less work hours.
3.- Started to look for a new job, got a job offer from an out of state company and they are asking me to relocate to a new city. they will pay all relocation expenses including the closing cost of the sale of my house and 1/2 of the closing cost if I purchase a house with in a year.
They have asked for a BMA analysis to 2 Real state agencies, after that they sent to me their Realtors, both of them have said to go with a short sale and seek legal advice from Real State Attorneys.

Called the Attorney and said they will explain to me the consequences of the short sale and everything related, their time cost $400.00 per hour (HA!!) like if I have so much money!!.

One realtor sent me his contract but there are some clauses there that I don't know if they are legit for example:
A.- there's no expiration date of the contract.
B.- Compensation to the Broker: 7% 8% 9% 10% (circle one of the following)<<<<< what??? do I choose how much to pay them?..
C.- if I the Seller refuse to accept an offer in accordance with the price and terms of the agreement, broker is authorized to collect said commission <<<is this valid?

Does this contract sounds normal to you guys? or are they looking out for them self?

Last but not least what options do I have in regards to the short sale????

Thanks.

I'm in a short sale now .. Live in NY and here is what i know about short sales.

First.. you need permision from your mortgage company to do a short sale. Call them and explain the situation. I don't know if they'll approve you if you haven't missed a payment.. but i do know you have to show that you can't afford the mortgage or that you do not have the difference to pay them at closing (from my understanding).

Secondly the broker will charge a higher percentage fee for the listing because since it is a short sale the bank will try to cut that listing fee in half. So.. if a Realtor started at a discounted 4% then they would only get 2% maybe 3%.. but if they start higher they'll get more. REally, doesn't make much difference to you since you are already walking away with nothing with or without the realtor fee.

The listing agreement is faxed to the mortgage company.. don't know how they feel about the date of expiration not being present.. but perhaps you should have one becaue if the agent is doing a poor job that could be the difference between you actually selling it short or going to foreclosure.

And as far as a short sale is concerned it goes on your credit report as "settled in less than full" and is far less painful than a foreclosure. I also was told it is looked on more favorably by mortgage companies in the future, as it means you've done what you could to get the mortgage company as much as you could rather than just leaving them with an empty home and an REO.

good luck.. the whole situation just plain sucks.. but I'm working hard to have a short sale as opposed to a foreclosure.
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Old 07-28-2008, 07:54 PM
 
109 posts, read 486,627 times
Reputation: 39
Thank you so much TristansMommy and formerLVguy for you time an info, I was told by the Realtor that since it will be a short sale it doesn't matter how much % of commission is paid. Lender will say how much is going to be paid to him and buyers realtor.
My house will be listed in the few comming days.
Hope it is well priced to sell fast
Will see.
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Old 07-28-2008, 08:31 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,192 times
Reputation: 908
Quote:
Originally Posted by coolricks View Post
Thank you so much TristansMommy and formerLVguy for you time an info, I was told by the Realtor that since it will be a short sale it doesn't matter how much % of commission is paid. Lender will say how much is going to be paid to him and buyers realtor.
My house will be listed in the few comming days.
Hope it is well priced to sell fast
Will see.
BTW.. your attorney shouldn't charge you to tell you the consequences. Call the attorney you used onyour purchase, explain the situation and tell him you are giong to short sell and want him as his attorney. His fee will be paid from the sale (ie'; the bank) and ask him to briefly explain the consequences and waht you will need to do. That's what my attorney did. This other guy sounds like a rip off..
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Old 07-31-2008, 05:36 AM
 
Location: Cold Frozen North
1,928 posts, read 4,521,272 times
Reputation: 1266
Here's some advice that I would give you. A friend of mine just finished up a short sale of his house. He had a very competent attorney who has been doing many short sales. His main concern was whether the second mortgage company that would suffer the deficiency could come after him. The answer was yes, they could! But they may choose not to. His lawyer felt they wouldn't with all the foreclosures and short sales going on these days.

My advice to him was not to let this go to chance. How would you like to be hit with a deficiency judgement for $100K? And he has a high paying job so they might pursue him. He had the attorney put language into the short sale contract that states that the deficiency balances are 'forgiven'. He always thanks me for this advice. He can now sleep nights.

I also told him that if he gets a 1099 with the deficiency balance on it, that will be a good thing. They can not both pursue you for the balance AND issue a 1099. The 1099 is no worry since the law that Bush signed late last year excludes taxes from being collected on deficiency balances. My friend hit the jackpot! It may be irresponsible to 'walk away' from this, but his situation was very complicated.
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Old 07-31-2008, 08:17 AM
 
Location: Tucson, AZ
529 posts, read 2,089,493 times
Reputation: 326
Quote:
Originally Posted by coolricks View Post
... I was told by the Realtor that since it will be a short sale it doesn't matter how much % of commission is paid. Lender will say how much is going to be paid to him and buyers realtor....
Coolricks this is absolutely right, the lender will decide how much commission they will pay.

As as far liability on the difference between amount owed and the amount the house sold for, consult your mortgage documents (and then speak to an accountant or real estate lawyer).

Several states (mostly in the West) have laws that anti-deficiency statutes that mandate that mortgages be issued as "non-recourse" loans. Essentially non-recourse means the homeowner can't be held personally liable for anything other than what is mortgaged (the home). Keep in mind that there are many external factors to every situation.

Coolricks best of luck to you, short sales usually take a lot of patience and a lot of time!
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Old 08-03-2008, 06:57 PM
 
Location: Woodbridge Twp NJ
316 posts, read 1,116,507 times
Reputation: 60
Quote:
Originally Posted by michael krotchie View Post
Coolricks this is absolutely right, the lender will decide how much commission they will pay.

As as far liability on the difference between amount owed and the amount the house sold for, consult your mortgage documents (and then speak to an accountant or real estate lawyer).

Several states (mostly in the West) have laws that anti-deficiency statutes that mandate that mortgages be issued as "non-recourse" loans. Essentially non-recourse means the homeowner can't be held personally liable for anything other than what is mortgaged (the home). Keep in mind that there are many external factors to every situation.

Coolricks best of luck to you, short sales usually take a lot of patience and a lot of time!
Most bank are cutting commisions for agents and they are doing more work on short sales . Do to all the paper work involed it is not easy work
see what most agent charge in your area for a short sale and go off that info
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Old 05-05-2009, 09:17 AM
 
1 posts, read 8,500 times
Reputation: 11
Contact me, I do short sales all the time. I will help you out of your house and hopefully settle your account, All at no cost to you.I am the buyer, I pay cash and work with the bank on your behalf.Trevor Johnston813.270.4388
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