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Old 02-09-2009, 04:13 PM
 
27 posts, read 91,987 times
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Just found out last week that we will definitely be relocating for my husband's job. Great news for him, but trying to sell our upside down house is another story. We already know it's not going to fetch as much as the mortgage is worth - values here (in So. FL) have dropped over 40% in the last couple of years. It's looking like we'll have to work on a short sale, but how does that process work? What is our next step? Do we talk to the listing agent about getting the house on the market? And then on the other hand, what do we do about finding a place to live where we're relocating? We'd like to do our house hunting trip in March. Trying to time things as best we can - we'll need to be out in CO by the beginning of June. Are we giving ourselves enough/too much time for the whole process? I'm so confused!!! Thanks for your help.
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Old 02-09-2009, 07:27 PM
 
Location: Barrington
41,862 posts, read 31,734,681 times
Reputation: 14080
Is this a transfer within the company or a new job?

Is the transffering company offering any financial assistance or oversight?

If you are upside down on your mortgage, do you have sufficient funds to close?

Are you current on your mortgage?

A short sale requires you to demonstrate a financial hardship to your lender. It is unlikely that relocation in itself will be viewed as a hardship. Does your husband have a 401K? While your lender cannot attach it, it will most definitely take the value into consideration to offset any claim of hardship. In other words, a short sale is not a sure thing.

Have you spoken to your lender about any of this, yet? Any chance you can rent the place out and make up the difference in the shortfall?

In terms of housing going forward, were you planning on renting or buying? If the latter, where do you plan to obtain your down payment? With a short sale or foreclosure on your credit report, it is not likely that anyone will finance you for the foreseeable future.

Last edited by middle-aged mom; 02-09-2009 at 08:01 PM..
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Old 02-09-2009, 07:47 PM
 
3,191 posts, read 8,038,260 times
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Are you getting a relocation package with hubby's transfer?
(first you should check that out before getting an agent, as they will usually place you with a qualified relocation agent on your end.And you will needs to follow the relo guidelines in order to reap the full benefits.)
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Old 02-09-2009, 08:05 PM
 
Location: Salem, OR
13,743 posts, read 31,570,576 times
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You can't do a short sale on one end and purchase a new home on the other end. The short sale will hurt your credit scores so you won't qualify to purchase.
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Old 02-09-2009, 08:52 PM
 
1,370 posts, read 1,934,063 times
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Can you rent out your curreent house???
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Old 02-10-2009, 05:28 AM
 
27 posts, read 91,987 times
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We are getting a relocation package, but there's no financial assistance for our situation. We're supposed to be hearing from an assigned seller's agent shortly. Will he/she be able to help us understand what our options are and the process to proceed? We have thought about renting our home out, but aren't thrilled with the idea. 1) Not sure if we can cover our mortgage/HOA/insurance with the going rate of rents around here, and 2) I can't imagine how stressful it might be living 2000 miles away from the house and heaven forbid we get hit with another hurricane (hit by 3 in last five years). Ideally, we want to just get out from under this house with as little damage done to our credit as possible.
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Old 02-10-2009, 06:31 AM
 
1,305 posts, read 2,054,767 times
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Quote:
Originally Posted by possible relo View Post
We are getting a relocation package, but there's no financial assistance for our situation. We're supposed to be hearing from an assigned seller's agent shortly. Will he/she be able to help us understand what our options are and the process to proceed? We have thought about renting our home out, but aren't thrilled with the idea. 1) Not sure if we can cover our mortgage/HOA/insurance with the going rate of rents around here, and 2) I can't imagine how stressful it might be living 2000 miles away from the house and heaven forbid we get hit with another hurricane (hit by 3 in last five years). Ideally, we want to just get out from under this house with as little damage done to our credit as possible.
You won't qualify for a short sale unless you stop paying your mortgage, and even if you stop, there is no guarantee a bank will allow a short sale sale.

Short sales also destroy your credit in a similiar fashion to foreclosure, so if you don't want to damage your credit, don't even think about a short sale.
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Old 02-10-2009, 06:58 AM
 
3,576 posts, read 5,905,354 times
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I can't believe people are so misinformed about short sales. Previously short sales were frowned upon because at the end of the year, the banks would pass along a 1099 MISC to you (say you were underwater 100K). That 1099 MISC would essentially say you owe taxes on that 100K the bank had forgiven you in a short sale. Now most banks will not issue a 1099 MISC and that's why short sales are "in vogue" now with homeowners who are underwater and trying to get out.

The issue is you need to prove to the banks that you are "poor" Meaning you cannot afford your mortgage payments anymore. This means if 100K in stocks/cash and are underwater 200K in your mortgage than you would need to deplete 100K first before the banks would even consider you for a short sale.

You basically need to end up being "poor" for a short sale to happen. As long as you can afford your mortgage payments, no banks will help you.
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Old 02-10-2009, 10:04 AM
 
Location: Barrington
41,862 posts, read 31,734,681 times
Reputation: 14080
Quote:
Originally Posted by possible relo View Post
We are getting a relocation package, but there's no financial assistance for our situation. We're supposed to be hearing from an assigned seller's agent shortly. Will he/she be able to help us understand what our options are and the process to proceed? We have thought about renting our home out, but aren't thrilled with the idea. 1) Not sure if we can cover our mortgage/HOA/insurance with the going rate of rents around here, and 2) I can't imagine how stressful it might be living 2000 miles away from the house and heaven forbid we get hit with another hurricane (hit by 3 in last five years). Ideally, we want to just get out from under this house with as little damage done to our credit as possible.
The agent should be able to give you your options and will probably do so quickly given they are not likely to be able to sell the home and get paid for their time.

There are millions of people in your position who want to get out from under, with minimum damage to their credit. It does not however, work like this. It is not likely that your lender, any lender, will consider you for a short sale. They may or not consider the circumstances and consider some form of loan modification. That you have a home equity loan on top of your initial mortgage is also a big issue.

Personal bankruptcy and/or foreclosure are options, with consequences.

All of these things are a consideration when accepting a relocation. What might be viewed as a good career opportunity could have significant long term consequences on your credit, including the rate you pay on any revolving credit card debt, your ability to rent and make future acquisitions on credit. There are no " free passes" when it comes to walking away from debt.

Does your husband have the option of declining the move and remaining employed?
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Old 02-10-2009, 10:41 AM
 
3,191 posts, read 8,038,260 times
Reputation: 2174
OP- wait and see what the agent says and can offer. Have you gotten a relo pack from the employer yet?
You may not have to pay closing costs nor have to pay commission yourself, it maybe part of the relo package. And that can help toward pricing the home to sell quickly...err quicker??

Don't be too quick to think you have to bail out. Try to not ruin your credit by thinking you have to!
I have stayed behind to get homes sold during relo situations, as hubby was fortunate to get some paid for temp living or really inexpensive month to month apts.until I caught up with him.

Good luck to you with the hopeful relo!
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