What to do after a short sale

[spdrun]

The refis are also bad because most of them only allow for sale at the price of the original mortgage unless a separate short sale is negotiated, and don’t allow for renting the property. Basically, they’ll tie people to their homes for the next 10 years, and reduce their flexibility.

[bearishgurl]

flu, an individual with $110K just two years after a SS either recently won the lottery, recently inherited the money, or MUCH more likely, always had some of it, by putting it under a mattress while pleading poor to their lender-creditors so their SS would be approved and subsequently, their debt forgiven.

As a “worker-bee,” unless they landed at high-paying job immediately after their SS and had virtually zero living expenses since then, I don’t see how one could “save up” $110K whilst being “indigent enough” to show and tell their trust-deed holder(s) at the time of SS approval that they could neither pay their mortgage payment OR pay the difference of the short upon closing.

Of course, none of the Piggs are rocket scientists but neither did we fall off of an onion truck yesterday :=0

[bearishgurl]

[quote=no_such_reality][quote=bearishgurl]I’m just curious how sd gal obtained $110K in two years since her SS yet she managed to stiff her lender by how much at closing?
[/quote]

Kudos to her. She was either smart enough not to impoverish herself with a bad loan or she can save enough that she’s piled $100K in a couple years.

Frankly, more people should play hardball with the banks and force them to foreclose. The loans are bad for them, the borrower. The borrowers never should have taken those loans and the banks never should have made them.

You should repay the loans you take, but frankly, the loans border on unconscionable. The refi’s to ‘save’ them are even more unconscionable taking a far greater share of their income to maintain than equivalent housing will cost them.

Debt is evil. In can be used smartly but borrowing money should never be easy because debt enslaves you.[/quote]

Agree, if sd gal’s purchase was just an unwise one at the wrong time and her SS was shorting “purchase money” mtg(s). But if taking “cash out” on her part in any way, shape or form was a direct causation of her SS, then she already took her “equity” (and perhaps much more). In this case, she made her own bed and should lie in it.

[Coronita]

[quote=no_such_reality][quote=flu] If the OP actually waits just 3-4 years, guards her money like a hawk, makes it grow a bit, he/she is going to be in such a stronger position than she is right now. That’s was my point.[/quote]

ROFL, in 4 years you’ll be wishing for the good ol’days of today.

The USA’s Greek tragedy is just beginning. We’re damned if we do and we’re double damned if we don’t. And nobody getting elected this year is going to have the nads to do anything other than spout party doctrine.[/quote]

I don’t think that will be the case. Greece doesn’t have an arsenal of weapons, tanks, and nuclear warheads. They make excellent negotiation terms. But we’re getting off topic here. And I’m going to stop.

[sd gal]

Personal loan of 12% interest rate is the standard rate I found in many bank websites. My credit score is around 750 even after the short sale. I didn’t take any equity out of my property, I actually lost over 100k paying off secound mortgage myself. Tried to be responsible. Bank only forgave me about 20-25k total.

[SD Realtor]

sd gal rather then going to websites just call a loan officer and talk to them personally. Go online to like aimloan.com and call them up, don’t bother filling out the online form. They have nice rates but are very stringent. They may be able to recommend a different lender.

As long as there is an avenue for the secondary market (aka the gse’s who are backed by taxpayer money) to purchase your loan then there will be an originator for the loan. If you can’t get anything from Aim call around.

Maybe you can get one, maybe not.

[bearishgurl]

[quote=sd gal]Personal loan of 12% interest rate is the standard rate I found in many bank websites. My credit score is around 750 even after the short sale. I didn’t take any equity out of my property, I actually lost over 100k paying off secound mortgage myself. Tried to be responsible. Bank only forgave me about 20-25k total.[/quote]

I take it then that the $25K forgiven was off your first TD and that you had to pay off your 2nd TD because you had a gov’t employer who would find it “moral turpitude” and cause for discipline if you didn’t?

Borrowers who take cash out of their pockets to close a SS are in the minority and usually do so because they are subject to periodic background checks at work which include their credit reports.

Did you buy your property (that you sold short) at the height of the market for an inflated price, sd gal?

[Diego Mamani]

[quote=spdrun]Or buy something inland or in Phoenix for cash, keep it rented out, and use it to pay for your rent. Once it’s income-producing, you may be able to mortgage it to about 60% of value, pulling cash out.[/quote]I like this advice! And it doesn’t have to be out of state, a nearby condo might work too. And it could be either cash, or nearly that (say, 80% down). Just make sure you keep some cash on hand for unforeseen expenses.

[bearishgurl]

I agree with SDR to shop around by phone but why don’t you give it another year or so and get your FICO score up to 765-770? Then you may be able to qualify for “prime” or “Alt-A” terms instead of being stiffed for prepayment penalties, up front points and higher interest rates, etc.

[Diego Mamani]

[quote=bearishgurl]why don’t you give it another year or so and get your FICO score up to 765-770?[/quote]I don’t think her FICO score is the problem, it’s the SS in her credit history.

[bearishgurl]

[quote=Diego Mamani][quote=bearishgurl]why don’t you give it another year or so and get your FICO score up to 765-770?[/quote]I don’t think her FICO score is the problem, it’s the SS in her credit history.[/quote]

I’ve read in several recent financial news reports that in order to qualify for the more competitive conventional mortgage rates and terms, one needs to now have a FICO score of about 770 (from 720 in recent years).

Where’s HLS when we need him?

[Diego Mamani]

From a 2008 posting on how to spend your bubble money (if you cashed out in ~2005):

[quote=sd gal]I cashed out in May 2005 selling my 2b/2b condo I bought in 1999. I kept almost all the profit in CD until last year which was roughly $240k.

I felt like I should start using them. So I bought a 4 prex in TX. I got them for a lot cheaper than market value as I knew some people there. I remodeled 3 out of 4 units and rented out.

It turned out being a landlord for 4 tenents is a nightmere. At least one unit forget to pay rent each month, something breaks down all the time.. and so on…. it was suppose to cash flow even before tax refund, but it didn’t turn out to be that way…

I just want to know…what do you think about the housing market in TX? Austin to be exact… I am thinking to sell soon, just so I can get away from those horrible tenants and bad property management company….I am willing to bear some loss… since it is all bubble money..well, I did reserch quite bit to time best time to sell tho.

My questions are

how did you spend your bubble money?

If you know about housing market in TX, what is your prediction for 2008?[/quote]

[spdrun]

Pwnt. (Though I thought the market in TX is relatively healthy — no major bubble nor bust — so I’m surprised that sdg needed to sell short.)

[Diego Mamani]

[quote=bearishgurl]I take it then that the $25K forgiven was off your first TD and that you had to pay off your 2nd TD because you had a gov’t employer who would find it “moral turpitude” and cause for discipline if you didn’t?[/quote]Actually, this is in the news today:
http://usnews.nbcnews.com/_news/2012/08/13/13221657-how-big-debt-is-threatening-security-clearances-for-thousands-of-troops

[bearishgurl]

[quote=Diego Mamani]From a 2008 posting on how to spend your bubble money (if you cashed out in ~2005):

[quote=sd gal]I cashed out in May 2005 selling my 2b/2b condo I bought in 1999. I kept almost all the profit in CD until last year which was roughly $240k.

I felt like I should start using them. So I bought a 4 prex in TX. I got them for a lot cheaper than market value as I knew some people there. I remodeled 3 out of 4 units and rented out.

It turned out being a landlord for 4 tenents is a nightmere. At least one unit forget to pay rent each month, something breaks down all the time.. and so on…. it was suppose to cash flow even before tax refund, but it didn’t turn out to be that way…

I just want to know…what do you think about the housing market in TX? Austin to be exact… I am thinking to sell soon, just so I can get away from those horrible tenants and bad property management company….I am willing to bear some loss… since it is all bubble money..well, I did reserch quite bit to time best time to sell tho.

My questions are

how did you spend your bubble money?

If you know about housing market in TX, what is your prediction for 2008?[/quote][/quote]

Understand everything now….

sd gal wouldn’t be the first person who left Cali to invest in TX, subsequently lost their shirt and returned, nor will she be the last.

I’ve posted here before that TX has several laws on the books which have the effect of keeping its residential property from appreciating:

see: http://piggington.com/what_is_the_equivalent_home_in_san_diego_to_this_158k_home_in_au?page=1

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