How easy are short sales?

[Alex_angel]

A friend at work was telling me his story and I offered two solutions, either walk away or try a short sale.

Here’s his story. The guy bought in San Marcos at the height of the market. About a year ago he lost his job. He moved to his inlaws and rented his house losing about $1000 per month out of pocket. He bought his house for $630 and just recently a comp on the same block sold for $510. He’s furious and wants out. I told him to walk from the loan or try a short sale. He spoke to a real estate agent and he also recomended a short sale. How possible is it that a bank will accept this deal? Is it common or will his only choice be to walk away?

[Alex_angel]

not sure how I tripled posted. Sheesh!

[Alex_angel]

not sure how I tripled posted. Sheesh!

[Alex_angel]

not sure how I tripled posted. Sheesh!

[Alex_angel]

not sure how I tripled posted. Sheesh!

[Alex_angel]

not sure how I tripled posted. Sheesh!

[EconProf]

BobS
Unless there are some extraordinary circumstances with his personal finances, this is a no-brainer. He should walk away. But first, do everything he can to build his liquidity as his credit standing will crash and he will have to be on a cash basis for several years. Not a bad thing, actually.
I’d also inform the lender(s) of the realities of his situation–perhaps they will see his point of view and work out a less-damaging outcome for all concerned, but that’s not likely.

[EconProf]

BobS
Unless there are some extraordinary circumstances with his personal finances, this is a no-brainer. He should walk away. But first, do everything he can to build his liquidity as his credit standing will crash and he will have to be on a cash basis for several years. Not a bad thing, actually.
I’d also inform the lender(s) of the realities of his situation–perhaps they will see his point of view and work out a less-damaging outcome for all concerned, but that’s not likely.

[EconProf]

BobS
Unless there are some extraordinary circumstances with his personal finances, this is a no-brainer. He should walk away. But first, do everything he can to build his liquidity as his credit standing will crash and he will have to be on a cash basis for several years. Not a bad thing, actually.
I’d also inform the lender(s) of the realities of his situation–perhaps they will see his point of view and work out a less-damaging outcome for all concerned, but that’s not likely.

[EconProf]

BobS
Unless there are some extraordinary circumstances with his personal finances, this is a no-brainer. He should walk away. But first, do everything he can to build his liquidity as his credit standing will crash and he will have to be on a cash basis for several years. Not a bad thing, actually.
I’d also inform the lender(s) of the realities of his situation–perhaps they will see his point of view and work out a less-damaging outcome for all concerned, but that’s not likely.

[EconProf]

BobS
Unless there are some extraordinary circumstances with his personal finances, this is a no-brainer. He should walk away. But first, do everything he can to build his liquidity as his credit standing will crash and he will have to be on a cash basis for several years. Not a bad thing, actually.
I’d also inform the lender(s) of the realities of his situation–perhaps they will see his point of view and work out a less-damaging outcome for all concerned, but that’s not likely.

[Alex_angel]

That’s what he’s hoping for. The RE agent is going to use his hardship as a reason. Since he lost his job and has been losing money on renting it out he hopes the banks might have some mercy. I agree. Why even bother with the short sale. You still get a credit ding anyways. I told him to just stop making payments and let the Bush bailout work in his advantage.

[Alex_angel]

That’s what he’s hoping for. The RE agent is going to use his hardship as a reason. Since he lost his job and has been losing money on renting it out he hopes the banks might have some mercy. I agree. Why even bother with the short sale. You still get a credit ding anyways. I told him to just stop making payments and let the Bush bailout work in his advantage.

[Alex_angel]

That’s what he’s hoping for. The RE agent is going to use his hardship as a reason. Since he lost his job and has been losing money on renting it out he hopes the banks might have some mercy. I agree. Why even bother with the short sale. You still get a credit ding anyways. I told him to just stop making payments and let the Bush bailout work in his advantage.

[Alex_angel]

That’s what he’s hoping for. The RE agent is going to use his hardship as a reason. Since he lost his job and has been losing money on renting it out he hopes the banks might have some mercy. I agree. Why even bother with the short sale. You still get a credit ding anyways. I told him to just stop making payments and let the Bush bailout work in his advantage.

[Author]

Posts