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Real Estate 101 - what is a
Realtor and how to they get paid?
Real Estate 101 chapter
2 - Why work with a real estate agent?
blog, Living in Seattle
Learn about Federal Loan
Assistance and help with Short Sales and Foreclosures
Here is a
timely reprint from the Seattle Times Q and A on Short Sales and Foreclosures
My daughter and I recently tried to purchase a home in foreclosure. It was
advertised for a specific price, we tried to negotiate down, but finally
agreed to the price. The mortgage company rejected our offer, saying they
now wanted a higher price. Is this illegal? We believe we were the only
offer on the table, and the property stayed unsold for months following
this. My daughter just found out the other day that it finally sold, but for
much lower than the originally advertised price (and lower than our first
I cannot give legal advice. However, at the time you made your offer, the
lender may have believed that the home was worth more than the offer you
- It is my understanding that the lien-holders are under no obligation to
accept any offer that is presented to them. Also, please note that price is
not the only factor that lien-holders consider. The other offer may have had
other favorable terms.
My husband and I are dealing with 50% less income due to layoffs and reduced
salaries. We are current with house payments, but only for the next month or
two. Our mortgage company has not implemented the home affordabily program
yet, and I and they do not know an ETA.
- Is there other proactive step I can take? I am hopeful that with an
improved economy our income will increase again.
Based off the information that you have provided, I'm unable to provide you
with sound advice. I recommend a HUD certified counseling agency to explain
your situation in more detail. Click here for a directory of HUD-approved
foreclosure avoidance counseling agencies
Where are all foreclosures listings? As as home buyer I find it very
difficult to get access to foreclosure listings. Aren't these lists public
and free. It seams like too many real estate agents and companies are trying
to make a profit out of them.
Yes, these lists are free. Please consult the county records for these
Is there any repercussions for taking out the equity in your home before
I would not recommend this. It may be possible that you may be pursued for
any amount still owed as a result.
What exactly happens to the 2nd mortgage during a short sale? Are you still
liable for paying that off or is it settled during the short sale?
At the time of the approval, the 2nd lien-holder will determine if the
balance is considered 'settled', or if a promissory note will need to be
signed for all or a portion of the deficient amount.
How much of a discount can you purchase a Foreclosed home for over a
- There are various factors that determine the 'magic number' for selling
a foreclosed property.
- Some factors will depend on the location, the current market, the
condition of the property, among other variables. Each case is unique.
If you have bad credit due to a foreclosure can you still purchase a home if
you pay cash for the property?
Yes, since your credit is not used to determine your ability to purchase the
home, you are safe.
If I decide to walk away from my property which is 100 thousand upside down
and I have an interest only loan, besides my credit taking a hit for 7 years
what is really the worst that could happen? My friend who works at a bank is
telling me to walk away given my specific situation.
I'd recommend other options before deciding to walk away from your home.
Some options to check into are.
- 1. Loan Modification - restructuring the terms of the loan
- 2. Short Sale - Where a homeowner owes more on the property than it is
- 3. Deed in lieu of foreclosure - giving the home to the lender, instead
- Depending on how many lien holders have interest in you home, the lien(s)
holder may be able to pursue you for the deficient amount.
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