Question about short sales

[WaitingToExhale]

This question will no doubt demonstrate my ignorance in real estate, but here goes. Some homes are referred to on SDLookup as being short sales, but their asking price is well above the previous sales price. My understanding was that a short sale was a sale where the seller owed more than he was asking. Does that mean these houses were HELOC’ed?

For an example, see:

http://www.sdlookup.com/MLS-072024394-17176_Poblado_Ct_San_Diego_CA_92127

The seller is asking $497K, the last sale was $285K (02/28/2001). How could this be a short sale?

[SD Realtor]

“My understanding was that a short sale was a sale where the seller owed more than he was asking. Does that mean these houses were HELOC’ed?”

Yep…

Short sale has nothing to do with the previous selling price. It has to do with your obligation to the lender. So yes it was refinanced in some manner. Which is most likely exactly what happened with the Poblado example.

SD Realtor

[SD Realtor]

“My understanding was that a short sale was a sale where the seller owed more than he was asking. Does that mean these houses were HELOC’ed?”

Yep…

Short sale has nothing to do with the previous selling price. It has to do with your obligation to the lender. So yes it was refinanced in some manner. Which is most likely exactly what happened with the Poblado example.

SD Realtor

[SD Realtor]

“My understanding was that a short sale was a sale where the seller owed more than he was asking. Does that mean these houses were HELOC’ed?”

Yep…

Short sale has nothing to do with the previous selling price. It has to do with your obligation to the lender. So yes it was refinanced in some manner. Which is most likely exactly what happened with the Poblado example.

SD Realtor

[Arraya]

Yup, that is the most likely cause. Sdlookup only gives purchase price it does not show what they did after. It’s a very common. I think the rule is they will get 1099’d for all the cash they took out. LIke 200K, ouch!

[Arraya]

Yup, that is the most likely cause. Sdlookup only gives purchase price it does not show what they did after. It’s a very common. I think the rule is they will get 1099’d for all the cash they took out. LIke 200K, ouch!

[Arraya]

Yup, that is the most likely cause. Sdlookup only gives purchase price it does not show what they did after. It’s a very common. I think the rule is they will get 1099’d for all the cash they took out. LIke 200K, ouch!

[WaitingToExhale]

Thanks for the answer. Wow, to be underwater even with that kind of appreciation has got to hurt.

[WaitingToExhale]

Thanks for the answer. Wow, to be underwater even with that kind of appreciation has got to hurt.

[WaitingToExhale]

Thanks for the answer. Wow, to be underwater even with that kind of appreciation has got to hurt.

[sdrealtor]

FWIW, Short Sales do not automatically indicate there was a HELOC or refinance. While it looks like there was probably one in your example it does not apply in all cases:

Case in point:

Buy house for 500K with 100% financing
House now worth 450K

House would now be a Short Sale w/o HELOC or Refi

[sdrealtor]

FWIW, Short Sales do not automatically indicate there was a HELOC or refinance. While it looks like there was probably one in your example it does not apply in all cases:

Case in point:

Buy house for 500K with 100% financing
House now worth 450K

House would now be a Short Sale w/o HELOC or Refi

[sdrealtor]

FWIW, Short Sales do not automatically indicate there was a HELOC or refinance. While it looks like there was probably one in your example it does not apply in all cases:

Case in point:

Buy house for 500K with 100% financing
House now worth 450K

House would now be a Short Sale w/o HELOC or Refi

[WaitingToExhale]

Right, but in this case the asking price is much higher than the purchase price from 2001.

[WaitingToExhale]

Right, but in this case the asking price is much higher than the purchase price from 2001.

[Author]

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