In GA, upside down...thinking about walking

[viviantrek]

Hi everyone,

After reading these blogs I realize I am not alone and my situation is not unique.

I am thinking about walking.

I have been trying to sell my house since May. I have a good income, I can afford my loan. I have never been late. I am selling my home because I have decided to get remarried and we don't need two homes. His is the right size.

I have had one person look at my home. I purchased it for $200k, I owe $183, I listed it for $173 (and planned to bring the difference to the table); the exact same townhouse (same side, same plan) listed theirs fot $165, I listed mine for $165...this is when I start calling Chase (my first $153) and my second (Suntrust $30k) asking/inquiring into short sells. Oh my I might as well shot myself in the head. Bottom line, they are requesting me to fill out all these forms...and well I look really good on paper...I am not in danger of being unable to make my payment. I decided against filling out the forms, since they told me they didn't want to discuss until I get an offer.

Back to my no offer: the other townhouse now is listed at $150k (their flyer says it has been pre-approved for a short sale). I have listed mine at $155k. If someone paid my asking price (fat chance) that would mean I would have to bring 30k to the table, plus closing costs, plus realitor fees.

So I am thinking about walking. I am meeting with a lawyer tomorrow so I can make an educated decision to walk or not.

I will let you know what he says and what I decide.

Viv

[Evan Bedard]

Hi viviantrek welcome and thank you for joining.

Back to my no offer: the other townhouse now is listed at $150k (their flyer says it has been pre-approved for a short sale). I have listed mine at $155k. If someone paid my asking price (fat chance) that would mean I would have to bring 30k to the table, plus closing costs, plus realitor fees.

If you went ahead and filled out the paperwork you may be able to complete a short sale on the residence. It may be more difficult since you are current but it is not impossible. Also the remaining balance will be issued to you 1099 and you will pay taxes on the 30k. A short sale will also be much better in the time coming, unless you aren't worried about how much your credit will drop since you already have another home...

Wise choice consulting with an attorney before you walk away, good luck and keep us posted!

[viviantrek]

Thank you for you input. I am not sure what I will decide to do, I will keep everyone posted. Viv

[Enough Already]

Hi Vivian,

I would be careful about giving your financial info to the bank. If you can afford the mortgage payments they most likely will not approve a short sale. You'll have a better idea of what to do after talking to an attorney.

Please do keep us posted. Good luck!

EA

[faith]

Originally Posted by viviantrek

Hi everyone,

Originally Posted by viviantrek

After reading these blogs I realize I am not alone and my situation is not unique.

I am thinking about walking.

I have been trying to sell my house since May. I have a good income, I can afford my loan. I have never been late. I am selling my home because I have decided to get remarried and we don't need two homes. His is the right size.

I have had one person look at my home. I purchased it for $200k, I owe $183, I listed it for $173 (and planned to bring the difference to the table); the exact same townhouse (same side, same plan) listed theirs fot $165, I listed mine for $165...this is when I start calling Chase (my first $153) and my second (Suntrust $30k) asking/inquiring into short sells. Oh my I might as well shot myself in the head. Bottom line, they are requesting me to fill out all these forms...and well I look really good on paper...I am not in danger of being unable to make my payment. I decided against filling out the forms, since they told me they didn't want to discuss until I get an offer.

Back to my no offer: the other townhouse now is listed at $150k (their flyer says it has been pre-approved for a short sale). I have listed mine at $155k. If someone paid my asking price (fat chance) that would mean I would have to bring 30k to the table, plus closing costs, plus realitor fees.

So I am thinking about walking. I am meeting with a lawyer tomorrow so I can make an educated decision to walk or not.

I will let you know what he says and what I decide.

Viv

Viv,
Hello and welcome to this forum,
Are you in a non recourse state like California? Do you have purchase money mortgage and never refinance? If yes, then you are protected by CA Section 580b and your lender can not pursue you for any deficiency judgment.

Does your agent has experience in doing Short Sale? Your home must be listed by a real estate agent who knows how to do Short Sale. Your home must be in the market about 60-90 days, late in mortgage payments within 60-90 days. You have to give authorization letter to your agent to talk to your lender. Your lender will only accept a Short Sale package if you have an agent and a buyer that makes an offer to buy your home.

Lender's do not accept For Sale by Owners' in Short Sale. You must be in financial hardship to be approved for Short Sale. Once a buyer makes an offer, your agent will submit the Short Sale package with the following forms: HUD1 form, listing price and contract, authorization letter from you authorizing your agent to talk to your lender, & buyer's offer.

You have to price your home right to attract a buyer, give incentives like giving your ref, washer and dryer or a one year subscription in Bally Health spa which will cause you about $300. If your neighbor is selling it for $150k, you have to lower your price at $140k. Remember, the strategy here is to get a buyer check your house with the hope that he or she will make an offer.

Timing is very important in doing Short Sale for the reason that buyers might back out while waiting for your lender to approve her offer. So you can use this strategy and tell your negotiator that they have to make the decision right away because you don't want to lose your buyer. You can also tell your negotiator that the home prices keeps going down so hurry up in approving the Short Sale.

Check www.zillow.com to see how much is the recent sold homes in your area. The lender will accept a buyer's offer within 85% to 90%. The lender will pay your agent 5% commission and there should be no costs to you.

The lender's PMI Private Mortgage Insurance will ask you to sign a prommisory note and that you will pay for the balance owed. Your negotiator will ask to sign that form or else they will not approve the Short Sale. You can tell them that you are covered by CA Section 580b and therefore you will not sign it and do a scare tactic that you rather file for bankruptcy if they force you to sign the promissory note.

You can also negotiate to pay the balance owed by offering to pay first 5% or 10% of the balance owed, so if you will owe $30k, offer to pay by cashier's check $1,500 or $3,000 if you have the means to pay it. Or payable in 5 to 30 years no interest. Do not let them know that you are afraid, excited or willing to pay the $30k, start offering to the lowest percentage like I've suggested. Make sure that they will give you a letter stating that they will not pursue you for any deficiency judgment and that the credit report should be paid as settled in less than full balance.

You can also offer a Deed in Lieu of foreclosure if you want to do this. Deed-in-lieu is an option for avoiding foreclosure. A deed in lieu of foreclosure actually offers numerous benefits to both borrower and lender. The primary and most important advantage to the borrower is that it immediately releases them from most or all the indebtedness involved with the loan and default. A second advantage to the borrower is they avoid the proceeding and public knowledge of a foreclosure. Also, the borrower can often get better terms by going with a deed in lieu of foreclosure, than if they have a formal foreclosure.

The main advantage to the lender is a major reduction in the time and costs it takes to proceed with a non-judicial foreclosure and their can be other advantages to the lender if the borrower ends up filing for bankruptcy afterwards. But the best option is doing Short Sale which only affects your credit score about 50-200 points. While Deed in Lieu maybe higher.


CA Section 580b. states;

No deficiency judgment shall lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser.

Where both a chattel mortgage and a deed of trust or mortgage have been given to secure payment of the balance of the combined purchase price of both real and personal property, no deficiency judgment shall lie at any time under any one thereof if no deficiency judgment would lie under the deed of trust or mortgage on the real property or estate for years therein.

God bless and take care.

[movinon]

Can you rent the property for close to your payments? I know it's a pain but it will give you some time.

[movinon]

Can you rent the property for close to your payments? I know it's a pain but it will give you some time.

[faith]

Viv,
I am sorry, I didn’t see that you in are Georgia
If the lender seeks a deficiency judgment in Georgia, the lender must file for a deficiency within thirty (30) days of the foreclosure sale and follow the procedures outlined in OCGA § 44-14-161, or the claim for a deficiency is barred. The foreclosure sale must be confirmed and the deficiency judgment must be approved by a judge of the Superior Court in the county in which the sale occurred

The links below may help you about deficiency judgment.
http://foreclosurelaw.org/Georgia_Foreclosure_Law.htm

http://ezinearticles.com/?Deficiency-Judgments-After-Foreclosure---Do-Banks-Really-Sue-For-Them?&id=1666663

[viviantrek]

Hello Everyone,

Thanks for all the comments. Special thanks to Faith for all the information.

As promised I am writing to give you an update. I spoke to a lawyer who defends consumers in my situation; but after the fact, after they walk. In Georgia, the news isn't good. In my situation, the problem is the second. Both loans are recourse loans, but because the first will have the house, and because it is Chase he felt it would be unlikely they would bother to sue me for the deficiency. However, he said I can count on Suntrust coming after me for the full amout. He already is defending someone from Suntrust, on a second.

He told me many things and explained stuff I didn't understand, but the bottom line was that my choices were:

1. Walk away, kill my credit, and pay about 20k (instead of 30k) to Suntrust, plus lawyer fees for the settlement and paperwork (which can really add up because Suntrust will try to get everything they can from me, because I have a good income.
2. Pay the difference now, in full, and keep my credit rating intact and unblemished.
3. Get an agent who has a strong background and a history of already selling short sales. Get an offer, any offer I can and run with it and try to come up with a settlement. In this day and age a short sale will will blemish my credit record; however, I may be able to "throw" some money at them and negotiate keeping it off my credit report.

This lawyer was brutally honest and didn't pull any punches. He told me he was unaware of any lawyers who were negotiating with lenders trying to push short sales for people like me, who have finances, are willing to bring some money to the table, but unable to bridge the gap between what the house will actually sell for and what they can reasonably bring to the table. He said, but he will ask around and see if he can find someone who can negotiate with Chase and Suntrust, keep me out of trouble, and satisfy all parties, thus preventing me from feeling like I have no choice but to walk.

So what am I going to do: First, the hardest, fire my agent who is not experienced in short sales--this will be hard because it is my Mom, who was selling it for me to save money. Second, if there is a lawyer out there who is taking advantage of this changed market/economy and working with people like me, I think I would hire him. Someone who will negotiate on my behalf and help me to keep everything legal.

In the end, if I can't get a buyer and/or negotiate a short sale, then I will ask for forgiveness instead of permission, and I will walk and take my lumps.

Maybe I will get lucky.

Viv

[faith]

Originally Posted by viviantrek

Hello Everyone,

Thanks for all the comments. Special thanks to Faith for all the information.

As promised I am writing to give you an update. I spoke to a lawyer who defends consumers in my situation; but after the fact, after they walk. In Georgia, the news isn't good. In my situation, the problem is the second. Both loans are recourse loans, but because the first will have the house, and because it is Chase he felt it would be unlikely they would bother to sue me for the deficiency. However, he said I can count on Suntrust coming after me for the full amout. He already is defending someone from Suntrust, on a second.


He told me many things and explained stuff I didn't understand, but the bottom line was that my choices were:

1. Walk away, kill my credit, and pay about 20k (instead of 30k) to Suntrust, plus lawyer fees for the settlement and paperwork (which can really add up because Suntrust will try to get everything they can from me, because I have a good income.
2. Pay the difference now, in full, and keep my credit rating intact and unblemished.
3. Get an agent who has a strong background and a history of already selling short sales. Get an offer, any offer I can and run with it and try to come up with a settlement. In this day and age a short sale will will blemish my credit record; however, I may be able to "throw" some money at them and negotiate keeping it off my credit report.

This lawyer was brutally honest and didn't pull any punches. He told me he was unaware of any lawyers who were negotiating with lenders trying to push short sales for people like me, who have finances, are willing to bring some money to the table, but unable to bridge the gap between what the house will actually sell for and what they can reasonably bring to the table. He said, but he will ask around and see if he can find someone who can negotiate with Chase and Suntrust, keep me out of trouble, and satisfy all parties, thus preventing me from feeling like I have no choice but to walk.

So what am I going to do: First, the hardest, fire my agent who is not experienced in short sales--this will be hard because it is my Mom, who was selling it for me to save money. Second, if there is a lawyer out there who is taking advantage of this changed market/economy and working with people like me, I think I would hire him. Someone who will negotiate on my behalf and help me to keep everything legal.

In the end, if I can't get a buyer and/or negotiate a short sale, then I will ask for forgiveness instead of permission, and I will walk and take my lumps.

Maybe I will get lucky.

Viv

Viv,
It's a good thing that your agent is your mom so she can not sue you for cancelling, most agents wants an exclusive listing, so in case you change your mind, they can sue you for cancelling. So make sure that you don't get an exclusive listing. List only for 6 months not a year. You can do a bbb search for a real estate agent, I will strongly recommend a Century 21 agent, they are very professional and organize and strong in short sales Most locations I've checked at Century 21 has a rating of AAA. Call the ones near you and ask for a Broker or the Manager to recommend you the best Agent with expertise in Short Sale.

I've tried to get a link for a lawyer in Georgia but my pc is very slow. Check Georgia BAR Association and see if the lawyer you have in mind is license to practice law, check if there's complaint filed or how long he's been practicing law and then follow your heart.

I've found this link in Georgia about lawyers that are rated good or worst.
Here's the link:
LawyerRatingz.com - GA Lawyer Ratings

I still think $20k is too much to pay the deficiency judgement of $30k, there's nothing wrong trying to ask for $10k., then slowly $15k. I think this lawyer doesn't want to work hard and wants to have easy Short Sale by telling you to pay $20k right away to the deficiency judgment. I did not hire a lawyer for many reasons and was able to do the negotiations with my negotiator myself. I called and emailed all the Executive of Countrywide, emailed them 2 a week and thank God for Moe and this forum and prayer.
I did scare tactic, told them that I rather filed for BK than to pay the deficiency judgment. I reminded them weekly that the home prices kept going down and my buyers kept backing out, 7 buyers to be exact.

Short Sale will affect your credit score about 50 to 200 points. It's important that you negotiated the deficiency judgment and make sure you get a proof or a letter from the lender that they will not pursue any dj against you.

Please know that the lender pays your agent's 5% commission after you signed the escrow and there is no cost to you. The buyer will pay the closing costs, but you can recommend to his or her agent to offer $10k or whatever the cost of the closing costs be and have it applied to the buyer's closing costs. I did that on my Short Sale, my selling price was $290k and the buyer made an offer of $298k with a condition that the extra $8k be applied to the buyer's closing costs and the negotiator agreed to that condition.

I just want to warn you that Short Sale is a very frustrating, draining and painful process. You have to have patience but persistence, bold and courageous and learn to let go. You need to cooperate with your agent and call, email, and constant communication with your negotiator and agent, and also pray, that's the key to a successful Short Sale.

I wish you the best among the best. May God gives you the desires of your heart and favor from your lender, Suntrust, negotiator and agents.

God bless you and peace be with you,