SOCIAL: short sale

[Jessica Tanzer Conroy]

BTW, I hope you don't all mind, I copied my friend Garrett on this.  He's answered a lot questions for me.

From: Erin Milnes <erin.milnes at comcast.net>
Subject: Re: SOCIAL: short sale
To: "'Geoff Davis'" <geoff at geoffdavis.net>, "'Amy Muller'" <amymuller at gmail.com>
Cc: "'Social Social'" <social at deeptrouble.com>
Date: Wednesday, June 23, 2010, 8:59 PM




 
 







 



Helpful explanation. and that site has
lots of good info. 

   

Palak, I know someone who has done a short
sale recently in Portland, and someone whose bank refused the deal here in
Oakland. Neither involved family members, but there are plenty of reasons it
won’t go through even without the “arms-length” issue. If you’d
like to speak with someone who has been through it, let me know. 

   

A short sale is a way to sell a house
whose mortgage (bank loan) amount is greater than the current market value of
the house (a situation that is called being “upside down” or “under
water”). It is in the bank’s interest (as well as the homeowner) to
avoid foreclosure, so they agree to the owner selling the house at a price that’s
less than the mortgage and forgive the remainder of the debt. When you do a
short sale it wrecks your credit for several years, but not as long as if you
declare bankruptcy or walk away from the house and let it be foreclosed upon.  

   

We have thought about short sale ourselves
a little, and it may become a reality in three years for us if the market here
doesn’t improve. We’d like to get out of Oakland before Duncan goes
to kindergarten. 

   

The practice is becoming much more common,
so there should be a lot of material online in addition to the site that Geoff
provided if you want to more. 

   

Good luck to your family, 

Erin 

   









From:
social-bounces at lists.deeptrouble.com
[mailto:social-bounces at lists.deeptrouble.com] On
Behalf Of Geoff Davis

Sent: Wednesday, June 23, 2010
5:18 PM

To: Amy Muller

Cc: Social Social

Subject: Re: SOCIAL: short sale 



   

http://homebuying.about.com/od/shortsale/f/arms-length-affidavit.htm 



On Wed, Jun 23, 2010 at 5:08 PM, Amy Muller <amymuller at gmail.com> wrote: 

Hmmm... I was just listening to Forum (I think it was Forum) the other
day on NPR and someone called up and said they were under water on their house
and they specifically asked if it was ethical to do a short sale of their house
to a family member and then buy it back. The "expert" on the show
said that it was actually categorically illegal to short sale sell a house to a
family member or friend. He was very definite about it. But maybe there *is*
some way to do it that's not illegal? I dunno. Just reporting what I heard. :) 





   



On Wed, Jun 23, 2010 at 4:51 PM, Amandeep Jawa <deep at deeptrouble.com>
wrote: 



Hmmm - here are 2 NPR episodes on short sales - but they seem to being
promoted by the Obama administration: 



(so probably not illegal :-) ) 





   





http://www.npr.org/templates/story/story.php?storyId=124850418 





http://www.npr.org/templates/story/story.php?storyId=125518608 









   





   



   







On Jun 23, 2010, at 4:48 PM, Amy Muller wrote: 







 

Are you talking about
real estate? If so, I *just* heard this question asked on NPR the other day.
Short sale of a property to a family member or friend is illegal. :( 



On Wed, Jun 23, 2010 at 3:31 PM, palak joshi <palak.joshi at gmail.com>
wrote: 



Dear Social,  





Does anyone understand short sale and can explain me into layman terms?
 





Are there pros and cons you can list of being a buyer in the short sale
to help a family member out?  





If not does anyone know anyone i can talk to? 





Thanks a lot.  





palak.  





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