Señor Short Sale Says.....
"Don't Let Your Short Sale Explode!"
If you have a home for sale in Orange County there's more than half a chance it's a short sale. Even though a short sale can be a challenge and test your patience there are definitely a few things you shouldn't do that could cause your short sale to explode.
1. Don't stop paying your Home Owners Association Dues
• Unfortunately a short sale can't close until the HOA dues are current; and many lenders will not pay past due HOA dues.
• It is best if you can to keep paying your HOA dues or you can pay them at the close of escrow. The amount is sometimes negotiable and sometimes the buyer or lender will pay them but these issues need to be worked out when escrow opens or else you might get burned late HOA dues.
2. Don't Cash Out Your 401 K
• 401K, IRA or retirements accounts are considered by most lenders to be" untouchable" money. Which means it is money the lenders don't make the seller apply towards the short sale.
• But if you were to cash in your 401K, IRA or any other retirement account then the bank would think that those funds are acceptable and would become "touchable" as opposed to "untouchable" for you to apply to your short sale. Therefore if you would like your retirement funds to stay "untouchable" then don't cash them out during your short sale.
3. Don't File for Bankruptcy
• If you are in an active bankruptcy most banks won't agree to a short sale.
•For the few that will probably want your trustee/judge to also agree to the short sale.
•Then the bank might decide to file a motion for Relief from Stay to remove your home from the bankruptcy and the protection. Thus allowing them to sell the property through a foreclosure never minding the bankruptcy.
•You will have a better chance of closing a short sale if you don't file for bankruptcy during the process.
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