May
30
Need to sell house due to divorce, I need advice?
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I am in the process of getting a divorce and neither one of us can afford the house payments on our own. We are considering a quick/short sale but I’m concerned my credit report will be affected negatively. I need advice on what is the quickest and best way to get this house of my hands. I don’t want to deal with the hassle of renters.
Quick Property Sale
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4 Comments
June 1st, 2010 at 7:12 am
You need to talk with your lender and your divorce attorney – between you – you should be able to come up with a solution that won’t impact your credit report -
June 1st, 2010 at 7:12 pm
Have you gotten an appraisal yet? If not, do so now. Offer a selling bonus to the local realtor(s), they will surely work harder on selling your home opposed to others in the area. Another thing, if it’s still not selling lower the asking price below appraisal price and market the home to that effect. Hope this helps.
June 2nd, 2010 at 5:51 am
Benefit of Short sales: You can qualify to buy a home in maybe 2-3 years. Foreclosures- have to wait 7 years.
Find a Realtor (realtor.com) Offer 6% commission. Banks are not allowed to negotiate commission on short sales that are 6% or less (new law). No bonus- comes out of your pocket and you won’t be able to afford it or justify it to the bank.
Call your bank with the Realtor to negotiate them accepting less than you owe.
MAKE SURE they do not include a provision that requires either of you to payoff the loss!!! Try to get them to not negatively affect your credit because you are working with them and saving them from having to foreclose.
**List home for the low of the market analysis provided by the Realtor.
Buyers dealing with a short sale will have to wait for the bank to accept less and this can take an extra 3months – 12months. Its crazy annoying for buyers- give them a deal so they stay.
Side Note: an appraisal is for the bank to know they are insuring a good home, a Realtor can do that for you! Don’t waste money on 2 appraisals, wait till you need it for buyers financing.
June 3rd, 2010 at 11:03 am
First, you need to know the fair market value of your home, so contact an agent who will provide a CMA. Few will charge for this service.
If you have equity, you’ll need to price the home as low as possible to get out of it. Or you can advertise your home to local investors who will offer you a wholesale price but they should be able to close in a few days depending on where the house is located. If you don’t have equity, then contact your lender and explain the situation. If you’re not behind on payments but expect you will be soon, let the lender know. If you’re already behind, contact an agent/broker/investor experienced in short sales, but not just any agent/broker/investor who claims to be an expert in short sales, someone who really understands the process, forms, time frames, etc.
One thing to remember here. “Short sales” are not quick and your credit will definitely suffer. No way around either of these two facts.