Real Estate Pros, I need your expertise (house, buyer)

[Jerseyt719]

Originally Posted by Bill Keegan

We've seen many situations like this. It's called a short sale. I know your friend's situation seems somehow different or special, especially since it appears to be such a small amount, but the fact of the matter, as you've explained it, is that they can't sell the house for an amount sufficient to pay off the note. This is the very definition of a short sale, and in order for it to be accepted by the lender, your friend must get the appropriate approvals & signatures, which requires going through the short sale process.

The one way around it is to somehow come up with the cash to pay the debt.

Thanks, Bill. I just wondered if any have seen another outcome other than short sale.

I feel awful for them. They fell on such bad times with the loss of the husbands job.

I'll tell her to give them a call.

One more question, can the sale still go through on time if they try for this sale to be a short sale or is it far too close of a time frame?

[Marc Paolella]

Originally Posted by Jerseyt719

Thanks, Bill. I just wondered if any have seen another outcome other than short sale.

I feel awful for them. They fell on such bad times with the loss of the husbands job.

I'll tell her to give them a call.

One more question, can the sale still go through on time if they try for this sale to be a short sale or is it far too close of a time frame?

Far too close. Short sale negotiations usually take months. They would be better off borrowing $3,500 from friends and family to close out the house and paying it back over time. Or selling off some personal property. $3,500 is not that much money any more. It should be doable.

[Jerseyt719]

Originally Posted by Marc Paolella

Far too close. Short sale negotiations usually take months. They would be better off borrowing $3,500 from friends and family to close out the house and paying it back over time. Or selling off some personal property. $3,500 is not that much money any more. It should be doable.

I thought it was too close but thought I'd ask anyway.

I just heard about 2 sites, prosper and lending club, I think? Not banks but more like private loans. I'm going to tell them to check there.

I'm only personally trying so hard to help them because they are great people and took my family, pets and all, in twice when our old home flooded until we were livable again.

I feel like its time to help them and I know how much they deserve it.

[imoapie]

Originally Posted by Bill Keegan

A well known, and very true, axiom in the real estate business is that the seller's need has no bearing on the value of the property. Just about NO buyers are willing to pay more because the seller needs more. They'll just move on to the next house.

I doubt the buyer would be willing to walk away after going through inspections etc over 3500. The house buying process takes a monetary and emotional investment. There may not be another house that fits everything. I would be upset I didn't know from the beginning but I'm not losing a house of 3500, its that simple.

[Sergio M]

From what the op says, the seller is not receiving any of the proceeds from the sale. If the seller is current on his mortgage, The lender is most likely holding an escrow for future taxes and insurance. See if they will reduce the amount due at closing by the amount being held in escrow. And, maybe the seller can come in with the rest. It should be close.

[Jerseyt719]

Originally Posted by Sergio M

From what the op says, the seller is not receiving any of the proceeds from the sale. If the seller is current on his mortgage, The lender is most likely holding an escrow for future taxes and insurance. See if they will reduce the amount due at closing by the amount being held in escrow. And, maybe the seller can come in with the rest. It should be close.

You are correct. They aren't receiving any proceeds. The $3500 would be to simply break even.

I will tell them this. Thank you so much. This is yet another avenue for them to explore and exactly why I asked this here. You guys can always come up with something others may not think of

[OysterCatcher]

I think a good solution is you let them borrow the 3500 or promise to do the yard work for the new owners for the next five years

[kimrocktherealtor]

Unfortunately no - they would have to go through the whole short sale process which can take a LONG time. They should do whatever they can to get the money.. borrow from friends/relatives, sell something, take a line out on a credit card, etc.

[donald cherry]

well I hate to even say this but..........if theres no sale the realators don't make a cent,maybe the realators can kick in a little each???add this to any escrow money and pre paid tax money and the sale sould go on?? good luck.

[HalfFull]

Originally Posted by donald cherry

well I hate to even say this but..........if theres no sale the realators don't make a cent,maybe the realators can kick in a little each???add this to any escrow money and pre paid tax money and the sale sould go on?? good luck.

worth a shot (and an idea that the agent won't be volunteering!)