I got this friend who is trying to do a short sale on his home. I believe he paid like 295K for the property and has an offer for 260K. He lives in another town now and is renting a place and still making payments on his house. He says that the bank can either accept the short sale or he will let them foreclose on it. I think he makes pretty good money maybe 100K+ year and has a wife that of course does not work. It seems to me that he can afford to make payments on the difference so why would the bank allow him to make this transaction? He says that a short sale will only ruin your credit for three years.
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it will ruin your credit far longer than 3 years, but honestly most lenders are more forgiving on foreclosures and short sales than people think. As long as your willing to take a 1/2 a point higher on your future loans for the next 10 years then I don't see why not to....
I mean sounds like he can get by and just doesn't want to pay. I doubt a bank will write off 35k. Maybe 25k, but 35k is pushing the envelope.Comment -
A lot of banks are allowing short sales right now because the market is so bad they can't get rid of them and it will cost them more to carry the inventory. MY boss and I were talking about this today. If you got the $$$ adn can afford to sit with is now is the time to start buying up a lot.Comment
