+- Punaweb Forum (http://punaweb.org/forum)
+-- Forum: Punaweb Forums (http://punaweb.org/forum/forumdisplay.php?fid=3)
+--- Forum: Punatalk (http://punaweb.org/forum/forumdisplay.php?fid=10)
+--- Thread: RE lawyer instead of RE agent for short sale (/showthread.php?tid=9982)
RE lawyer instead of RE agent for short sale - Alex - 03-01-2012
While trying to help my friend I also want to educate myself on the subject.
My friend's bank doesn't want the house forcing to do a short sale.
While my friend is in serious clinical depression his wife signed a contract with RE agent.
I think it was a big mistake because the agent told them that according to some state BS law"to protect a consumer" (Act 137) she can not negotiate with the bank and they need to hire a RE attorney.
The question is if the house obviously not selling and RE in Hawaii is not obligated to do the open house
what exactly RE agent is getting her 6% for? Multiple listings?
She is not showing the house ( buyers agents do) ,
no open house,
and IS NOT GOING TO NEGOTIATE with the bank to get the difference between the short sale and the money owed forgiven.
So is it better just to hire a RE attorney to negotiate with the bank
instead of RE agent?
If we ever have to move back to the US we would be seriously upside down with our mortgage (bought before the "bubble").
RE: RE lawyer instead of RE agent for short sale - nanasohana - 03-01-2012
What would you gain by going short sale? What would happen if you just quit making payments?
What are you gaining by continuing making payments? Do you think soon values will go up? Just asking.....
RE: RE lawyer instead of RE agent for short sale - Alex - 03-01-2012
My fiend stopped paying and wanted to sign the papers over to the bank to get easier on his credit.But the bank doesn't want it.
I am still paying and plan to stay in Puna.Asking for a friend for now but want to be prepared myself.Not feeling too confident in this economy.
RE: RE lawyer instead of RE agent for short sale - nanasohana - 03-01-2012
Well this may open a whole can a beans...the "bank" probably doesn't have the documents for negotiating anything...so, no deals. Oh yeah, they will make much more money to steal, I mean foreclose.
So, Alex, let me ask you. You paid for your house the amount the market would bare, correct? Well, it was a false, invented, and manipulated market, so what ever your friend or you or anyone does, its not your fault...it was rigged.
And its just business. Not an ethical issue at all.
RE: RE lawyer instead of RE agent for short sale - csgray - 03-01-2012
People do need to know that if you close a short sale the IRS considers the difference between what you owe and the short sale price INCOME and you will owe taxes on it. That is a good reason to avoid a short sale at all costs.
There are many people in Puna who are living in houses they aren't making payments on any more. I know of several cases where the bank knows they will never receive another payment, but don't want the house to sit empty, so they are letting the "owners" stay until the market picks up. I am not arguing the ethics of any of this, but an alternative to a short sale is to just quit making payments.
Carol
RE: RE lawyer instead of RE agent for short sale - dmbwest - 03-01-2012
Carol,
If any of your friends are interested in some kind of rent to own, take over payments kind of thing please let me know.
Most sincerely,
pog
RE: RE lawyer instead of RE agent for short sale - riverwolf - 03-01-2012
I'm always amazed that many people were happy to deal with the "evil corps" when they thought they could resell their home whenever they wanted and make a good profit, or take easy equity loans on their homes to take holidays or purchases they couldn't afford.
Now that the "bubble" popped, people are crying and gnashing their teeth.
Of course the market was inflated and manipulated. It always has been, from houses to tulips. Anybody who bought into the game and didn't realize that is naive.
Many years ago people bought a house to have a secure home for their family and to have a place of their own to enjoy, too live in for generations.
Those who used the house market as fast investments and those who jumped on the ship to late, are paying there dues for not understanding the rules. Did the banks screw you? Did the government screw you?
Of course they did! Why are people so surprised? Now I guess you get to be mad and screw them back but to honoring your contract and trying to live in a house for free as long as you can. Personally I don't care. It doesn't make you any better than the banks though.
enjoy, River.
riverwolf
RE: RE lawyer instead of RE agent for short sale - csgray - 03-01-2012
Pog,
They can't afford the IRS hit so will/can not do a short sale and most banks won't let you wrap an owner financed contract. So the bank is willing to let them live there until the market improves. In all 3 cases it is a local bank and they were owner builders who built their dream home, all were also in the building trades which is why they can't make their payments.
Riverwolf,
I loved the tulip reference, the first big documented bubble!
Carol
RE: RE lawyer instead of RE agent for short sale - dmbwest - 03-02-2012
Got it ... Thanks Carol : )
aloha,
pog
RE: RE lawyer instead of RE agent for short sale - Bullwinkle - 03-02-2012
I'd check with a lawyer - the state statute seems to lean towards making the lender "whole". In many instances leaving the loan holder liable for any losses to the lender........
May be worth a couple of hundred dollars to know the fine points