Short sale in Michigan question (foreclosed, negotiation, agents, second mortgage)

[Violetdream]

Do you have to be on the brink of foreclosure or having financial difficulties to do a short sale?

We can afford our home, but the value has dropped a lot in the past few years (about $30,000). We want to move south desperately....I am very depressed living here.

Our biggest problem is the second mortgage on our home that we took out 5 years ago to pay for surgery that wasn't covered by our insurance. If it weren't for that...we could put up our house for a reasonable amount & break even. We have no money to bring to closing.

Is short-sale an option in our situation?

Are we stuck here until the housing market goes up again in south-east Michigan? Who knows how long that will take?

[Janipoo]

I am not a professional but I believe a short sale is when you are behind in your payments (maybe even starting in the foreclosure state) and the mortgage company agrees to take less for the house so that it doesn't sit empty and they don't have to go through the foreclosure red tape. I also believe that anyone who wants to purchase the property has to get an approval through the mortgage company.

Maybe some of the real estate agents can give you more insight but from what you say you wouldn't qualify.

[Brandon Hoffman]

A short sale is defined as the lender accepting a payoff that is less than the current mortgage. It can be difficult because you have to prove that you are in a financial bind. The bank places the burden of proof on you because they don't want to lose money but they don't want a foreclosure either.

If you have a second mortgage, you could try to buy your own mortgage and then forgive yourself the debt. It won't be easy but you could probably get it for less than you owe if run the course. Again, it won't be easy and it might not work.

[Violetdream]

Originally Posted by Brandon Hoffman

If you have a second mortgage, you could try to buy your own mortgage and then forgive yourself the debt. It won't be easy but you could probably get it for less than you owe if run the course. Again, it won't be easy and it might not work.

Can you explain more? How does that work? I'm intrigued!

[nsumner]

No mortgage company is going to accept a short sale unless you are behind a few months in payments and show hardship such as a difference in income due to loss of a job, somebody sick etc.

That is going to hurt your credit and even if you move south you would be unable to get a loan because of that. I would recommend that if you can afford it, stick it out, the market will change eventually.

[Shortsaleguru]

Yes, in a nutshell, a 'short sale' involves going to the lender to petition for a reduced payoff. I specialize in these sales and have a wealth of information on the subject.

Moderator cut: no soliciting, please

Defaulting on your mortgage or not being able to sell your home can be a difficult situation. Many homeowners know they are heading into default, even if they are not behind on payments yet, or may already be in foreclosure. Most homeowners are unaware that they do have options before their bank or Mortgage Company takes back their house.


• Avoid the credit score damage that comes with foreclosure
• Experience a quicker financial recovery
• Avoid foreclosure entirely
• Live in the property without paying the mortgage for up to 1 year or more
When is it a good idea to negotiate a short sale?
• The property has no equity
• The loan amount is higher than what the property is worth
• The homeowner is facing foreclosure due to missed mortgage payments
• The property’s physical condition does not allow for a Fair Market Value Sale
• Financial hardship including medical problems or divorce
• Relocation out of state

Moderator cut: ...

[Violetdream]

Thanks for your reply. I hope it helps someone else here. As for us, the deal is done, & we are moving to Florida soon! YIPPPEEE!!!

[ShortSaleGuru2011]

I can answer all of your questions and help you with all of your short sale negotiation needs. I am here to help you get out of a bad loan or out of a non performing home. Please call anytime 248.637.4653 The Short Sale Division USA is a company that has been completing short sale since 2009. by assisting realtors with their sellers and sellers themselves. Let us help you get out of paying your lenders back without filing for bankruptcy. Call Daniel at 248.637.4653

[AnnewithanE]

Hi -

My house has been foreclosed on and there was a sheriff's sale on Feb 1. (The house didn't sell.) I've been told I have until August 1 to pay off the entire amount or have a short sale. Is this information correct? Can I still do a short sale after there's been a sheriff's sale?

Thanks.

[Debsi]

Yes you can do a short sale during the redemption period.