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Could you help me understand that logic process? Unless banks are consistantly winning law suits for the difference between the foreclosed sale prices and the mortgage amount owed I dont see how it is in your best interests to write such a huge check.
The lenders don't have to win a suit to derail your sale.
You just won't be able to clear title, and basically won't be able to sell, unless you find a buyer feeble enough to stroke that 10 grand check in additional to your sale price, so they can get clear title.
It gets to be challenging to sell properties without clear title, and that intent is something you had better disclose before suckering someone into a contract.
The lenders don't have to win a suit to derail your sale.
You just won't be able to clear title, and basically won't be able to sell, unless you find a buyer feeble enough to stroke that 10 grand check in additional to your sale price, so they can get clear title.
It gets to be challenging to sell properties without clear title, and that intent is something you had better disclose before suckering someone into a contract.
I am refering to opting for a stratigic foreclosure instead of selling it if your underwater. Why would I write that check instead of just walking away unless the banks were winning law suits.
I am refering to opting for a stratigic foreclosure instead of selling it if your underwater. Why would I write that check instead of just walking away unless the banks were winning law suits.
I am wondering if these forms of debtors prisons are impacting participation in the economy and further pulling things down? That is good to know though. Also sounds like state governments need to be petitioned to disallow such judgements, I will have to see if Alaska allows deficiency judgements and if so I will be writing my govenor. The bank is just as much at fault for making the loan as the individual for taking the loan out.
It appears Alaska is not a deficiency judgement state for "nonjudicial forclosure", so I will have to figure out what a "judicial forclosure" is.
Last edited by highlife2; 12-06-2011 at 12:23 PM..
I am wondering if these forms of debtors prisons are impacting participation in the economy and further pulling things down? That is good to know though. Also sounds like state governments need to be petitioned to disallow such judgements, I will have to see if Alaska allows deficiency judgements and if so I will be writing my govenor. The bank is just as much at fault for making the loan as the individual for taking the loan out.
It appears Alaska is not a deficiency judgement state for "nonjudicial forclosure", so I will have to figure out what a "judicial forclosure" is.
One should not ever into debt casually. Debt IS a responsibility, after all.
Could you help me understand that logic process? Unless banks are consistantly winning law suits for the difference between the foreclosed sale prices and the mortgage amount owed I dont see how it is in your best interests to write such a huge check.
I can certainly give you one basic reason. Let's say you want to buy a house again right away. Good luck getting a mortgage with a short sale or foreclosure on your record. And even if you could, the interest rate would be so much higher it would cost you way more than the 10K you wrote the check for. That would apply to any other type of loan as well.
The other easy answer is that 10K just isn't a lot of money to some people.
One should not ever into debt casually. Debt IS a responsibility, after all.
I am aware of the emotional arguments regarding this issue but I have to look at all optoins and do what is in the best interest of MY family not the banks. Hopefully we can continue professional discourse.
You would provide a Warranty Deed when you sell, whether FSBO or via Realtor (there is no i in Realtor).
There are several parts to selling FSBO and to selling in general. Let's assume you already know the price to ask
1) Market the home: Sign, flyers, web site, photos, various classifieds and online sites, newspapers, MLS. If FSBO, you can find a Discount Broker to get you into MLS. You then offer the Buyer's Agent a commission, because it will be a Buyer's Agent that finds the listing and brings the buyer. This is typically 2.5% -3%. Some discount brokers allow you to choose the amt. If you go too low, the agent will not show your place. Find a discount broker that allows the calls and emails to be forwarded to you. Then you arrange showings, whether via agent or direct buyer. You also do all negotation.
2) paperwork, negotation. What state are you in, OP? Many states allow title companies to do all paperwork for the closing. Some states require an attorney. Either way, you contact them ahead of time and tell them you are FSBO. Most will have a blank contract for the buyer to fill out. They will also hold the deposit in most cases. They do title search, prepare all closing paperwork and deed, and they arrange for closing where buyer brings the funds and buyer and seller sign things and buyer gets the money and seller gets the house and keys.
3) you arrange the inspections and you fill out any needed seller disclosure forms. You find out what is required in your state for disclosure. You negotiate inspection fix ups (and deductions from sales price, if needed) with buyer. You get any inspection related sign off forms between buyer and seller.
4) You pay commission of buyer's agent at closing IF there is an agent. Title company or attorney deducts this from your proceeds at closing.
I can certainly give you one basic reason. Let's say you want to buy a house again right away. Good luck getting a mortgage with a short sale or foreclosure on your record. And even if you could, the interest rate would be so much higher it would cost you way more than the 10K you wrote the check for. That would apply to any other type of loan as well.
The other easy answer is that 10K just isn't a lot of money to some people.
Its alot of money to me and would cause alot of problems for my family. I am aware that I could not get a loan at a good rate for 7 years so thats something to take into consideration as well since my wife will want to buy a new house in 5 year or so after I buy a plane (life goal and why I cant fritter away 10 grand), frittering away 10 grand will put buying the plane off by another year or so which sucks and thus push out buying a home.
We are going to let the realitor do his thing and if he cant by the time his contract expires we will try to sell it for our break even price, if we cant do it then we will be between a rock and a hard place. Maybe eating the 10k is the best option (or however much it takes) and go into a cheap skate mode that would make the frugalist of families cringe to rebuild the savings.
I can also just sell it for what I can and just pay on whats left of the mortgage which should only be like 50$ a month since I will close out the escrow and the principal will only be like 10k for a 30 year loan, I wonder if the bank would allow this since it would be a sort of "refinance" but im not paying 5 grand since it is no longer attached to real estate, maybe the bank would make a deal with me to readjust my payments based on the new principal. If I sell on my own I will have to figure out how to close the escrow myself and transfer the title when the guys check clears. Simply not paying the taxes anymore should reduce the payments significantly. May need a contract or he can write a cashiers check and sign the title in the same sitting so everyone is honest. Kind of like buyin a plane with cash.
Its probably about tiem that I drop full coverage on my 10 year old ranger with 120k miles on it anyway that should offset the difference.
Last edited by highlife2; 12-06-2011 at 12:47 PM..
Its alot of money to me and would cause alot of problems for my family. I am aware that I could not get a loan at a good rate for 7 years so thats something to take into consideration as well since my wife will want to buy a new house in 5 year or so after I buy a plane (life goal and why I cant fritter away 10 grand), frittering away 10 grand will put buying the plane off by another year or so which sucks and thus push out buying a home.
We are going to let the realitor do his thing and if he cant by the time his contract expires we will try to sell it for our break even price, if we cant do it then we will be between a rock and a hard place. Maybe eating the 10k is the best option (or however much it takes) and go into a cheap skate mode that would make the frugalist of families cringe to rebuild the savings.
I can also just sell it for what I can and just pay on whats left of the mortgage which should only be like 50$ a month since I will close out the escrow and the principal will only be like 10k for a 30 year loan. If I sell on my own I will have to figure out how to close the escrow myself and transfer the title when the guys check clears. May need a contract or he can write a cashiers check and sign the title in the same sitting so everyone is honest. Kind of like buyin a plane with cash.
If you sell the house and give clear title, there will be NOTHING left on the mortgage.
That is pretty much how it works. I predict you will not find a buyer to take on your property with a mortgage lien against it, and deliver the bulk of the funds necessary to close unless you deliver marketable and insurable title.
Of course, an incompetent cash buyer may do it. No lender will lend on such a proposition.
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