Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
talk to me about short sales
I also posted o n MM. We would like to move and from what we are hearing the chances of our home being worth even close to what we paid are pretty much zip (we bought in 2005).
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Re: talk to me about short sales
So you want to sell your current house as a short sale?
First of all ... can you afford your current house? Because you have to be approved by your mortgage holder to do a short sale. Which means you have to show hardship that makes it impossible to stay in your current home. Your mortgage holder isn't going to take a loss on your house just because you feel like moving somewhere else. You need to be able to prove that you've had a job loss or income loss or medical emergencies or divorce or something. Wanting to move to a better house is not a hardship. If you can afford your current house, you are not likely to even be approved for a short sale.
Secondly ... even if you do get approved to short sell your house, a short sale will mean a big hit to your credit rating. My brother did a short sale after getting divorced and losing his job, and his credit score went down by 125 points. You will not get approved for a mortgage on a new home immediately after selling your current home as a short sale. A short sale is not as devastating to your credit as a foreclosure, but it's still bad. You will probably have to wait a few years before being able to get a mortgage again. Not to mention the issues you'll have if you need a car loan or whatever in the meantime. If you short sell your current house, you will have to rent for awhile, you won't be able to buy a new place right away.
Long story short ... a short sale is not a "get out of jail free" card. There are consequences.
Mr. Sammy Dog
You don't necessarily have to prove hardship I've had sellers who just want out do short sales, to get a short sale though you typically have to be 31 days and rolling late on your payment, so if you're current you won't be able to do a short sale. If you're current you most likely won't even be eligible for a loan modification.
After a short sale you won't be able to puchase for 3 years just the way the world works, its put in place to stop people from just deciding to buy a new, better, shiny home and walk away from the former home.
Agree with others, you have to prove hardship and the bank has to approve the sale. The bank will only consider a short sale if you are behind on payments. In my area I've seen people get approved to buy another home in as little as 1.5 years, but the typical timeline is 2 years after the close of the sale. I've never seen it take 3 years unless someone had credit issues to begin with.
I would view a short sale as a last resort. You are in the same position as many Americans and unless you have some sort of hardship that is keeping you from paying on your home, you may just be stuck.