Can you short sell your house even if you aren’t facing foreclosure or bankruptcy?

Tips and Deals Forums Buying Your Home Can you short sell your house even if you aren’t facing foreclosure or bankruptcy?

This topic contains 14 replies, has 6 voices, and was last updated by  Anonymous 7 years, 8 months ago.

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  • #207347

    Anonymous

    Like if you just owe more on it then its worth and you want to get out of it, can you shortsell it?

  • #264503

    Anonymous

    If your lender will accept the offer, you can do a short sale.

  • #264919

    Anonymous

    In all honesty, no lender actually considers this unless you’ve shown them an inability to pay. The only way to do that is to miss payments.

    Problem with missing payments is that it creates the potential for foreclosure. There’s no way to guarantee the lender will allow a short sale once you’ve missed payments, and that they won’t just foreclose. TThat’s probably not a wise risk to take when you’re expecting a baby.

    Put yourself in the lenders shoes. You give someone a loan for hundreds of thousands of dollars and then they come to you saying “I don’t feel like paying the whole amount back. It’s not that I can’t. I just don’t want to.” Are you going to agree to that?

    Just because you happen to be upside down now doesn’t mean you can’t eventually be right side up. You just have to own the house for several years until it appreciates enough that you can sell for profit. It will happen.

  • #264997

    Anonymous

    In all honesty, no lender actually considers this unless you’ve shown them an inability to pay. The only way to do that is to miss payments.

    Problem with missing payments is that it creates the potential for foreclosure. There’s no way to guarantee the lender will allow a short sale once you’ve missed payments, and that they won’t just foreclose. TThat’s probably not a wise risk to take when you’re expecting a baby.

    Put yourself in the lenders shoes. You give someone a loan for hundreds of thousands of dollars and then they come to you saying “I don’t feel like paying the whole amount back. It’s not that I can’t. I just don’t want to.” Are you going to agree to that?

    Just because you happen to be upside down now doesn’t mean you can’t eventually be right side up. You just have to own the house for several years until it appreciates enough that you can sell for profit. It will happen.

  • #279076

    MerrillSab
    Member

    Not unless your lender allows it.

  • #279851

    Anonymous

    A short sale means you’d sell the home for less than you owe. To do that you have to have permission from the one you owe. The only reason a lender would agree to do that is if the alternative would cost even more. The only thing that would cost more is another foreclosure in a foreclosure glutted market.

    You say you aren’t facing foreclosure. Your lender has no incentive to do a short sale. Why would they take less than what’s owed when you’re already paying what’s owed?

  • #279912

    Anonymous

    A short sale means you’d sell the home for less than you owe. To do that you have to have permission from the one you owe. The only reason a lender would agree to do that is if the alternative would cost even more. The only thing that would cost more is another foreclosure in a foreclosure glutted market.

    You say you aren’t facing foreclosure. Your lender has no incentive to do a short sale. Why would they take less than what’s owed when you’re already paying what’s owed?

  • #279993

    Anonymous

    Requires Lender’s approval, and in such situation, less likely to obtain it

    If you can, better to ride out this depression

  • #437151

    Anonymous

    Go to daveramsey.com. His plan is free and it works. You can take his books out at the library.

  • #437152

    Anonymous

    your bank

  • #437153

    Anonymous

    Poster #1: nice try, but no cigar

    Poster #2: not even close:

    Here’s the REAL answer…If you really want to repair your credit as badly as you say you do, then the first step is to avoid credit repair services. They don’t do anything anymore special than you can do on your own. The first thing that you need to know that knowledge is power. In order to fix your credit, you should know how your credit is scored and how it affects you

    1. Payment history- 35%
    2. Total debt owed to avialable credit ratio-30%
    3. Length of time establishing credit-15%
    4. Types of credit established-10%
    5. Inquiries and New accounts-10%

    With that said, there’s 2 things when it comes to bad debts and collection items that you should be aware of, the FCRA and statute of limitations. These are 2 diffferent things. The FCRA(Fair Credit Reporting Act) is the timeframe that negative items can remain on your report which is 7½ years from the date it first went deliquent. For example if a debt first became delinquent July 10, 2000 the legal limit that the debt can be reported would be January 10, 2008. Also, there is a seperate statute of limitations that varies by state on how long a debt can be legally enforced. This is different from the FCRA, because depending on which state you live in the statute may or may not expire before the FCRA.

    here’s a link for that

    Another important thing to know is that negative items that are less than 2 years old are hurting your score the most. It’s possible that you can settle much older debts for far less in exchange for getting them removed from your report altogether. This is called a “pay to delete”. I posted several links explaining this in detail

    Open new credit- I had mentioned in #1, about opening a checking and savings account with a bank or credit union, I’m going to tie that in with what I’m about to say. Some major banks (Bank of America, Wells Fargo, USBank, Orchard Bank) and some credit unions offer secured credit cards, which are credit cards that require a deposit to establish credit. Whatever you deposit would be the credit line, for example, if you deposited $ 300, then your credit line would be $ 300. The deposit isn’t used to pay for what’s purchased on the card, you would still need to either pay in full or make monthly minimum payments. The deposit is used only if the account becomes delinquent and goes to collections. A couple of good things is that you can increase the credit limit by adding to the deposit, which can help your score because it creates a much needed cushion between the total debt that’s owed and the available credit, and also the deposit is sometimes linked to a savings account which earns interest while you’re building credit, so the deposit isn’t just sitting there. A good way to build credit with the card is to make small purchases ($ 20/month max) and pay it off on time every month, while adding to the deposit. Usually after a year or so, of paying it off on time, the card either converts to a regular card or it’s upgraded to a better card, and most importantly the deposit isn’t needed anymore and it’s given back. My suggestion would be to open another secured card and repeat the process or open 2 at a time, which would speed things up. If you make small purchases, pay it off and increase the limits, that will really help your score. In the end, you’ll have 2 credit cards with decent limits and an emergency fund from the deposits.

    Enroll with PRBC- PRBC is America’s Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus:

    Rent
    Cable
    Phone
    Daycare
    Insurance
    Electric
    Natural Gas
    Cell Phone

    The only time your payments for these bills are reported to the other credit bureaus is if they’re missing or late.With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history. PRBC offers two simple ways to start building credit today.

    In closing, just a few more things to keep in mind.

    -Don’t spend more than 30% of your combined available credit on all your cards.

    -Only apply for credit when necessary.

    -Pay on time

    Hope this helps…

    Thanks for reading and…

    Good luck!
    There’s sites like the one I posted along with a few more than can help you repair your credit cheaper and easier than you would if you paid out of the pocket.

  • #437154

    Anonymous

    You can do this yourself! Old credit stays on for 7 years- 10 years for bankruptcy. You can pull your credit report on line for free at annualcreditreport.com- Pull all 3 major credit bureaus Equifax, Experian, & TransUnion. Then write a letter or you can dispute on line. If writing you need to give your name, address, social, etc. then list each debt that you are disputing & tell them why. Anything old that hasn’t reported for awhile just tell them paid in full. It will come off! The way it works is the credit bureaus contact the creditor & tell them what you are disputing. The creditor has to correct, or prove they are already correct. If the creditor does not respond at all the credit bureaus have to delete the account. About 50% of the time it gets deleted.

    Good luck

  • #437155

    Anonymous

    poster #1 has the best advice.

    Go to and listen to his radio show. He has lots of great advice on money and debt. It doesnt cost a dime to listen.

  • #437156

    Anonymous

    $ moovy Loco has some great advice … it is long but worth the read … additionally, you can do a lot of credit repair yourself, but it WILL require you to do some reading and a little work on your own.

    Check out these forums, I am finding them extremely helpful:

    they have all of dave ramsey’s advice and more … and they also talk about how different things worked for them and what credit cards or loans were easy to deal with – real life experience and feedback from a large number of people!

    alternatively, there are credit repair agencies out there – they have all of the knowledge and research, so basically they do the leg work for you … you can google credit repair agencies, but be sure to also google reviews for those agencies … the cheapest I have heard of that worked was over $ 300, but they were unprofessional … the best reviews I have seen are for agencies that end up costing around $ 1000 … but again, they don’t do anything you can’t do yourself … anyplace cheap or free is a scam!

    this site ranks several agencies:

  • #437157

    Anonymous

    Smoovy has some good info.

    Get a copy of your credit report (AnnualCreditReport.com) and start with the newest derogatory and work backwards. The older the item, the less impact on your score. You may even want to wait out some of those 6 year old debts. They’ll only be there another year or so.

    You can negotiate settlement of the old debts yourself. Send letters. Don’t use the phone, email, or fax. You want a papertrail. You can probably settle the older debts for 25%. Lump sum gets the best deals. Any payment plan has to be short term. Get any settlement agreement in writing and don’t give them access to your bank account.

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