Listing a short sale while purchasing another home

By
Real Estate Agent with Century 21 New Millennium

Hopefully, my friends on the Active Rain site can help me with this question.  I have buyers that have just contracted on a new home to be built here in Virginia. Home to be completed in April.  Buyer's own a home in Florida in which they are very upside down on but have had the house rented for the past two years and the lease ends next June. The buyers are very credit worthy.  Here is the issue.  The buyers are considering a short sale for their Florida home AFTER the settlement on the Virginia house.  If the Florida property is put on the market now, does this effect their credit since the house must be listed showing that it will be a short sale?  Should they just wait until their lease ends and after settlement on the Virginia home?

Comments (1)

Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

too much legal eze to make a judgement call like that... the things to consider are the credit is only affected if they are late now or after the short sale. If they buy something else and then do a short sale, the bank can then hold them responsible for that deficiency especially if they find they bought another property. The bank will determine their ability to pay the defieiciency or if they have anything to attach that balance too. That is where professional advice is needed form their attormey and or cpa as to what type of ownership they should use on their next property. A professional negotiator may be able to get them to release them from the deficiency as opart of the short sale to avoid the bank trying to collect it.

Dec 15, 2010 04:22 AM