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Was wondering if anyone has done a short sale on their home in Michigan?

We are looking a purchasing a new home but can't sell our current home for what we owe on it. We are not behind on our payments or anything and have great credit. We have been told that with some of the new laws that have been passed we would qualify for this type of deal.

We are just looking for some answers as to the affects that a short sale has on your credit or what other penalties there are.

We have been told things from one extreme to another. One person told us that if you have great credit you will still have good credit. Another said that it would affect both of our credit for the next 5 yrs. and someone else said it would only affect my wifes for 18mo. because the mortage and home is only in her name.

Just wanting to know for sure what the penalties are going to be before we go ahead and say, sign us up. We found another house but don't want to get in over our head before we know what the outcome is going to be.

Thanks for any help,
Brandon
 

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i wouldnt think this is what u want to do.... i dont knw much about it on the sellers end, im goin through buyn a house in Mo. right now thats in a short sale and it has been a long drawn out nightmare that is just now coming to a end(after 5 months) but here the way it works it is set up so the bank wont let u bankrupt (bein that they dont wanna own your house) they just make u sell it called a short sale.... def do your homework on this!!!!!!!
 

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i dont think short selling is designed to help you upgrade to a better house.i believe you may be liable for the balance if you were proven to be untruthful in your reasoning to want out of your house at a reduced pay off price.
 

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A short sale is the same to your credit as if you were forclosed on. And the cool thing that the banks are doing these days is you will get 1099'd for the difference of the mortgage balance to the price sold for. Basically it's treated as income on your part & you'll have to pay tax on it. Quick question........when you signed all the paper work for your current mortgage agreeing to pay for it, was there anything in there saying you could short sell it or default on it, should the market drop & you having a difficult time selling?
 

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Was wondering if anyone has done a short sale on their home in Michigan?

We are looking a purchasing a new home but can't sell our current home for what we owe on it. We are not behind on our payments or anything and have great credit. We have been told that with some of the new laws that have been passed we would qualify for this type of deal.

We are just looking for some answers as to the affects that a short sale has on your credit or what other penalties there are.

We have been told things from one extreme to another. One person told us that if you have great credit you will still have good credit. Another said that it would affect both of our credit for the next 5 yrs. and someone else said it would only affect my wifes for 18mo. because the mortage and home is only in her name.

Just wanting to know for sure what the penalties are going to be before we go ahead and say, sign us up. We found another house but don't want to get in over our head before we know what the outcome is going to be.

Thanks for any help,
Brandon
A short sale will definitely affect your credit (adversely). IF you are going to do this you may want to try to buy the "new" house first. Since your wife owns the existing house you may not be adversely affected .... check the state regs on whether or not your marriage put you on the hook (creditwise) for her mortgage. If she owned it before your marriage, I would think that YOU are in the clear as far as that goes.

You could by the new home in your name then short sale or simply walk away from the old one. Sort of dirty pool, but that's your call. It would cook her credit for a while, no doubt.

IF a local bank/finance company holds your existing mortgage there is no cost in going to them, sitting down with a loan officer and explaining HER situation ahead of time. I'd send her in alone ... especially if on paper you do not "exist" in regards to the loan. You never know, something may be able to be worked out where everyone wins.

In the worst case can you rent it and cover the cost of owning it?
 

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Was wondering if anyone has done a short sale on their home in Michigan?

We are looking a purchasing a new home but can't sell our current home for what we owe on it. We are not behind on our payments or anything and have great credit. We have been told that with some of the new laws that have been passed we would qualify for this type of deal.

We are just looking for some answers as to the affects that a short sale has on your credit or what other penalties there are.

We have been told things from one extreme to another. One person told us that if you have great credit you will still have good credit. Another said that it would affect both of our credit for the next 5 yrs. and someone else said it would only affect my wifes for 18mo. because the mortage and home is only in her name.

Just wanting to know for sure what the penalties are going to be before we go ahead and say, sign us up. We found another house but don't want to get in over our head before we know what the outcome is going to be.

Thanks for any help,
Brandon
Also Brandon, it might pay to buy an hour with a BK or a real estate attorney to see if YOUR WIFE declares BK how does that affect the pair of you moving forward. There may be some legal strategies unbeknownst to us and you that could get you out of this situation especially seeing as how YOU are at least on the face of it not on the hook for the mortgage.

This real estate morass has brought out a lot of theories/plots/schemes ..... got to be careful out there .... nothing worse than f'ing yourself in the heiney.
 

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Discussion Starter #7
I don't know enough about it. That is why I'm wondering if anyone has experience with doing it. The real estate agents make it sound like no big deal. I have asked about the 1099 and was told that it is negotable, you may pay upto 10 percent or you may pay nothing. My wife has owned our current home for almost 10yrs. We have done plenty of updates and put alot of money into this house and it is no longer worth what she paid for it long ago. We are not trying to cheat anyone or any system just wondering what the catch is to something that is presented to you as such a great offer.
 

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I don't know enough about it. That is why I'm wondering if anyone has experience with doing it. The real estate agents make it sound like no big deal. I have asked about the 1099 and was told that it is negotable, you may pay upto 10 percent or you may pay nothing. My wife has owned our current home for almost 10yrs. We have done plenty of updates and put alot of money into this house and it is no longer worth what she paid for it long ago. We are not trying to cheat anyone or any system just wondering what the catch is to something that is presented to you as such a great offer.
There is nothing easy or great about a short sale. Doesn't matter if you are the buyer or the seller.

Agents will blab all about them, the bottom line is they have zero pull at the bank.
 

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Why cant you just take the difference in the sale and balance owing and add it to your new mortage? Either that or rent it out to some crackheads and have lots of insurance on it.
 

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A "short sale" means YOU defaulted on the contract. You will take a huge hit in credit rating and will not be able to get a mortage for s couple of years. DO NOT DO IT......it will follow you for 10 years AND COST YOU IN EVERY CREDIT TRANSACTION.
 

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Why cant you just take the difference in the sale and balance owing and add it to your new mortage? Either that or rent it out to some crackheads and have lots of insurance on it.
Nobody is going to give you a mortgage for more than what the new house appraises at. And their new game is to appraise a house for $1,000 more than the selling price. Nobody wants to be on the end of a government audit.
 

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Discussion Starter #12
I spoke with a financial advisor on Friday a little about things. I was supposed to talk to him more on Sat. but haven't been able to get ahold of him. I just thought I would ask on here and get some "real world" experiences. It's been frustrating to find answers because everyone seems to have a different opinion. We are just looking for facts and an answer as to ok, if you do this, this is what will happen. We did call our current mortage company and explained our current situation. They said we would have to purchase the new home first, which they did approve us for. They did tell us that it would affect both of our credit scores, but we were just wondering if this was true because everyone else has told us it would only affect hers.

Thanks for the responses
 

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I spoke with a financial advisor on Friday a little about things. I was supposed to talk to him more on Sat. but haven't been able to get ahold of him. I just thought I would ask on here and get some "real world" experiences. It's been frustrating to find answers because everyone seems to have a different opinion. We are just looking for facts and an answer as to ok, if you do this, this is what will happen. We did call our current mortage company and explained our current situation. They said we would have to purchase the new home first, which they did approve us for. They did tell us that it would affect both of our credit scores, but we were just wondering if this was true because everyone else has told us it would only affect hers.

Thanks for the responses
You need to speak with an attorney. I would take the bank's opinion with a grain of salt. They do have a dog in the hunt.

Financial "advisors" are not attorneys. Sometimes they are apt to sell you something that looks good on paper, makes them a few bucks, and ends up costing YOU a bunch.

I have nothing in the world agains financial advisors, I have a great one ... they advise me on investments, not "short sales".

You need to speak to an attorney ... one well versed in real estate and credit laws.
 

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Just closed on our first house Friday. Went through a short sale and to say the least it made me never wanna go through this shit again. Put an offer in the 3rd week of December, didn't get a counter-offer til March. We countered again the next day, got an answer a week later, then our closing date was changed 3 times. Our Central Air unit was stolen right after the Sale Pending sign went in the yard, haha. We went into our closing expecting the worst but that went pretty well.....oh well no wait, they didn't have the fucking keys and no one knew where they were...Really?!?!?
 

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  1. FORECLOSURE/BANKRUPTCY KILLS YOUR CREDIT SCORE!
  2. SHORT SALE WOUNDS YOUR CREDIT SCORE!
  3. LOAN MODIFICATION "MAY" SCRATCH YOUR CREDIT SCORE!
  4. I BUY HOUSES AND DEAL WITH THIS EVERY DAY OF THE WEEK ,AND FEEL FREE TO GIVE ME A BUZZ(724)425-1911 OR [email protected] ! THAT GOES FOR ANY MEMBER OR FRIENDS & FAMILY ALSO ! GOOD LUCK REGUARDLESS ! :smt025
 
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