We have had our house on the market and have been unable to sell it. A representative from HomeVestors (We buy Ugly Houses) contacted me and said that they would do a short sale on the home where they negotiate a price and they will buy it from them. He said they they negotiate to make it satisfactory so they bank couldn’t come after us for any difference in what we owe vs what they buy it for. I know that this will ding my credit, what other ramifications does it have? Is it a good idea in order to get into a new home or a bad idea? We would be buying the new home before they did the short sale on our current house.
I was with you up until you said “We…buying the new home before they did the short sale on our current house.”
*Why* are you selling? Why are you buying? If you are doing a short-sale and stiffing the bank for the difference, do you really think anyone should loan you money to go buy another house?
HomeVestors is saying they will try to have the issuing bank treat this as a non-recourse loan so that you would not have cancelled debt income for tax purposes.
October 6th, 2008 at 10:12 am
I was with you up until you said “We…buying the new home before they did the short sale on our current house.”
*Why* are you selling? Why are you buying? If you are doing a short-sale and stiffing the bank for the difference, do you really think anyone should loan you money to go buy another house?
HomeVestors is saying they will try to have the issuing bank treat this as a non-recourse loan so that you would not have cancelled debt income for tax purposes.
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October 6th, 2008 at 10:13 am
i think that you would be better off contacting your lender than letting this company do anything for you. they sound like scamsters. notice how “they contacted you”? usually, reputable lenders and brokers don’t contact homesellers out of the blue. it’s better off to figure out what is keeping your home from selling or lower your price. if you let these jokers in, you could end up regretting it. why not just say where you are and ride out the crisis as it is. i think that’s the best move…and forget about buying a new home right now.
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October 6th, 2008 at 10:14 am
Well if you can get a new home with the other one on your credit then that would be the way to go. If you make that much money then why don’t you sell it and deliver good deed with no hits at all to your credit by bringing the cash needed to close. You see you must meet the debt to income ratio with your old home + the new home in the mix as it is not sold.
I am a mortgage banker in TN & KY
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October 6th, 2008 at 10:15 am
I have to agree. If you can afford to buy a new home, why not just pay the difference to your lender to sell your home without hurting your credit? It’s not only smart, it’s the right thing to do.
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October 6th, 2008 at 10:04 pm
The house can be sold. You will be asked to sign a promissory note for the “short” amount. You can pay this back over 20 years. This is the part that Homevestors is not telling you about. It is not a big deal if you owe $100,000 and sell it for $95,000. You sign a note for $5,000. But most houses sell way below the loan and no seller ever agrees to pay $60,000 over 20 years and lose their house. Might as well just let the bank accept a deed tomorrow and be done with it. The bank can sell it to Homevestors..
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