Question about short sales

[WaitingToExhale]

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

[GoUSC]

For someone that took out that much on a HELOC they sure didn’t use it to improve the house. What a dump.

[GoUSC]

For someone that took out that much on a HELOC they sure didn’t use it to improve the house. What a dump.

[GoUSC]

For someone that took out that much on a HELOC they sure didn’t use it to improve the house. What a dump.

[betting on fall]

I do always wonder what the people did with the money in these situations. Where the hell did the 200k go? Even a hummer, boat and bigscreen would only waste half of it.

I hope they at least enjoyed spending it enough to make the next seven years of credit hell worthwhile.

[betting on fall]

I do always wonder what the people did with the money in these situations. Where the hell did the 200k go? Even a hummer, boat and bigscreen would only waste half of it.

I hope they at least enjoyed spending it enough to make the next seven years of credit hell worthwhile.

[betting on fall]

I do always wonder what the people did with the money in these situations. Where the hell did the 200k go? Even a hummer, boat and bigscreen would only waste half of it.

I hope they at least enjoyed spending it enough to make the next seven years of credit hell worthwhile.

[KIBU]

I think they down payment for 2 more houses. 100,000 for each house.

Now 1+1+1 = 0 house

[KIBU]

I think they down payment for 2 more houses. 100,000 for each house.

Now 1+1+1 = 0 house

[KIBU]

I think they down payment for 2 more houses. 100,000 for each house.

Now 1+1+1 = 0 house

[one_muggle]

Minor point perhaps, but rather than a HELOC, it seems a little more likely that they refi’d other debt into their first mortgage using the increased equity. Could be for credit cards, cash-out, healthcare, or even rolled a previous HELCO in, who knows…
The reason for my assumption is that typically all lenders need to approve a short-sale, and the HELOC lender (who would be in second position, at best) likely will lose a huge fraction on a short sale, so are unlikely to approve.
This would tend to force things into foreclosure, rather than a short sale.

For example:
1st loan: $300k
HELOC for $100k (using equity)
This would need to sell for around $430k to not owe money at closing (~6 pct to realty etc.)
If the short sale was for, say $350k, the fist loan holder would get their $300k, but the HELCO owner would only get at most $50k at closing, and the former owner would still owe the fees. In some states, the lender can try to seize assets to cover and/or hand the former owner a 1099 for the $50k.

I’ve been out of it for a while, so the exact details may be off, but it still really quite ugly.

While there are plenty of specu-vestors and dkheads out there, I still know plenty of folks who just wanted to live in their own home, raise kids and get a dog. I don’t want to bail them out, but I also don’t get the foreclosure parties around here.

-one muggle

[one_muggle]

Minor point perhaps, but rather than a HELOC, it seems a little more likely that they refi’d other debt into their first mortgage using the increased equity. Could be for credit cards, cash-out, healthcare, or even rolled a previous HELCO in, who knows…
The reason for my assumption is that typically all lenders need to approve a short-sale, and the HELOC lender (who would be in second position, at best) likely will lose a huge fraction on a short sale, so are unlikely to approve.
This would tend to force things into foreclosure, rather than a short sale.

For example:
1st loan: $300k
HELOC for $100k (using equity)
This would need to sell for around $430k to not owe money at closing (~6 pct to realty etc.)
If the short sale was for, say $350k, the fist loan holder would get their $300k, but the HELCO owner would only get at most $50k at closing, and the former owner would still owe the fees. In some states, the lender can try to seize assets to cover and/or hand the former owner a 1099 for the $50k.

I’ve been out of it for a while, so the exact details may be off, but it still really quite ugly.

While there are plenty of specu-vestors and dkheads out there, I still know plenty of folks who just wanted to live in their own home, raise kids and get a dog. I don’t want to bail them out, but I also don’t get the foreclosure parties around here.

-one muggle

[one_muggle]

Minor point perhaps, but rather than a HELOC, it seems a little more likely that they refi’d other debt into their first mortgage using the increased equity. Could be for credit cards, cash-out, healthcare, or even rolled a previous HELCO in, who knows…
The reason for my assumption is that typically all lenders need to approve a short-sale, and the HELOC lender (who would be in second position, at best) likely will lose a huge fraction on a short sale, so are unlikely to approve.
This would tend to force things into foreclosure, rather than a short sale.

For example:
1st loan: $300k
HELOC for $100k (using equity)
This would need to sell for around $430k to not owe money at closing (~6 pct to realty etc.)
If the short sale was for, say $350k, the fist loan holder would get their $300k, but the HELCO owner would only get at most $50k at closing, and the former owner would still owe the fees. In some states, the lender can try to seize assets to cover and/or hand the former owner a 1099 for the $50k.

I’ve been out of it for a while, so the exact details may be off, but it still really quite ugly.

While there are plenty of specu-vestors and dkheads out there, I still know plenty of folks who just wanted to live in their own home, raise kids and get a dog. I don’t want to bail them out, but I also don’t get the foreclosure parties around here.

-one muggle

[bsrsharma]

“what the people did with the money”

Could some of them be sharp enough to have sent that 200K to Cayman islands or Bahamas? You do it five times and you can retire not too bad. I suspect at least some would have figured this.

[bsrsharma]

“what the people did with the money”

Could some of them be sharp enough to have sent that 200K to Cayman islands or Bahamas? You do it five times and you can retire not too bad. I suspect at least some would have figured this.

[Author]

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