Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Sandra asks…

How to get out of an investment home, short sale? foreclosure?

So I bought a home in the Detroit area as an investment. First someone decided to steal nearly $2000 worth of plumbing and heating/cooling. Then now have a tenant in there who has been served a 7 day notice by my property manager because she just made her December rent payment and has yet to make January. I have done nothing but lose money on this home. Is there any way to get out of it? I owe ALOT more than what the market has this home going for and not sure how or what would happen if I sold it for less than I owe. Would I be liable for the balance? Is there something I can do?

Thanks for the help

Your Questions About Foreclosures

The Expert answers:

Don’t know who your leneder is but I would contact them and ask to speak to the loss mitigation department to work something out….Lenders are dealing these days and they might cut you a good deal.

Good Luck!

Your Questions About Foreclosures

Laura asks…

How do I find a reliable real estate agent in Las Vegas area experience in short sale?

I am trying to sell a single family home for short sale to avoid foreclosure. Looking for a reliable and well established agent with experience with short sale homes.

Your Questions About Foreclosures

The Expert answers:

If you sell with short sale you will still owe the money. You will still have to pay back the difference to the lender in the form of a deficiency judgment. Watch out. You should consult a real estate atty because a realtor will tell you anything and will cut the price in half just to get the property sold and you will be stuck paying the difference. Have you talked ot the lender? Can you rework your loan payments?

Your Questions About Foreclosures

William asks…

Is it good for a sellers Lender to sell the house in short sale or move it to foreclosure ?

I had put an offer for a short sale home and the sellers bankers(they have 2 mortgages).

Not sure as if the lenders will accept the offer or not.

1)As far as lender is concerned does it make sense to accept OFFER during the short sale or move the property to foreclosure ?

2) Where do lenders make money ? or anything good for them

Your Questions About Foreclosures

The Expert answers:

1. It only makes sense to accept the short sale if they think the value of the house and your offer are close. If they think they can get more if the property forecloses, then they will foreclose.

2. They get tax breaks and/or insurance money. Before the bail out they also had an incentive to get rid of these properties before it got foreclosed on.

Your Questions About Foreclosures

Thomas asks…

Why does Lenders prefer FORECLOSURE instead of SHORT SALE ?

Example:- There is a short sale property listed for $250K and I had put an offer for $220K. Most of the properties in that area are listed for $265K and I am sure they might be selling between $225-$240K. Now this property has 2 mortgages ( 1st $265K – 2nd 35K) and I am sure one of the lender will have to loose 100% or may be they both negotiate as how what piece of cake each one will get.

1) Why does a Lender move a short sale property to foreclosure ? What are the benefits for him ?

2) Does Lenders get more money for a foreclosure property ?
How do they get more, lets say the same above property if they move from short sale to foreclosure, why would someone pay more for the same property ?

3) Does lenders make fast decision on foreclosure homes compared to Short sale properties ?

Your Questions About Foreclosures

The Expert answers:

To answer your first and third questions, there are more people involved in a short sale compared to a foreclosure. In a short sale, there is:

1) The current homeowner/the seller and their agent
2) The primary lender
3) A possible secondary lender if there is a home equity loan
4) An insurance company if there is a PMI policy
5) and finally, the buyer.

Also keep in mind that none of the first four listed want to take a loss. So not only is there a coordination problem, there is also a battle among the four as to which party will take the loss. When the home goes into foreclosure, the lenders, the homeowner (now former owner) and the PMI company are forced to resolve their issues and the primary lender takes ownership of the home. So now when the bank puts the home on the market, any potential buyers will only have to deal with one entity.

On the second question, the home will sell for less. However, if there was a PMI policy then the insurance company will cover some or all of the loss. This is one of the reasons AIG needed a bailout.

Your Questions About Foreclosures

Maria asks…

How do I find a list of bank owned homes for sale without paying membership fees who sell foreclosure info?

Small family of 3 looking to purchase a house, townhome or condo in Orange County, CA. Good credit 730+, solid income $110/yr household, first time buyers: looking to purchase home between now and the next year or so. I hear banks are reducing costs on homes they own and want to get people like us into a loan we can afford. Where can I collect this information. How can we take advantage of the current housing market since we refrained from accepting a sub-prime loan we couldn’t afford when everyone else was.

Your Questions About Foreclosures

The Expert answers:

If you can’t afford the lists…you cant afford the homes.
The cost of the list is a business cost that is tax deductable. So stop playing cheap and do business legitimately.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures