Loan mortgage to buy a home
Get a loan mortgage to buy a home can be a positive step for you and your family, but if the value of your new home falls sharply, it’s likely that you are in a difficult situation. If you owe more on your mortgage than your house is worth, you may want to consider a short sale. With a sale and you can choose any you want with the buyer, subject to lender approval. You can choose a friend, but this will pose additional questions and issues.
Basics of a Short Sale
A short sale occurs when you receive permission from your mortgage lender to sell your home for less than what you owe for it. For example, if you take a mortgage of $ 200,000 for a house when the market was high, but now owe him $ 150,000 while the house is only worth $ 140,000, you could be a candidate for the short sale. To complete a sale of this kind is necessary to find a willing buyer and present your offer to the lender. In this case, the buyer would be willing to pay you $ 130,000. Everything depends on whether the lender accepts the short sale and lose $ 20,000 or refuses and forces you to keep paying your mortgage, with the risk of a long and expensive if you can not afford to pay foreclosure. Buyer you choose can be any person that the lender approves.
If you select a friend to the buyer in a short sale, you run the risk of a number of potential social and personal problems. One involves the embarrassment of leaving home you were probably very happy to have a short time ago. The request for a short sale is the same, in the minds of some people, to admit defeat. We also puts a world of uncertainty where the lender, not you, has the power to allow a sale to go ahead or not. A short sale also requires patience as you will need to make sure your friend has considered the possibility of the buyer. Lenders can take many months to review the records financial, along with your proposal buyer to ensure that the acceptance of the short sale is a good business decision. Meanwhile, your friend will not be able to buy a house somewhere else or give the money set aside for a down payment, with no guarantee that the short sale ever happen.
Some lenders have a policy that does not allow short sales in situations where the buyer and seller know each other. Lenders restrict short sales among friends can ask the seller to sign a form stating that there is no pre-existing relationship between the buyer and seller form. A short sale is known among friends as a transaction between independent parties, and some lenders use it as a basis for automatically reject a proposed short sale. Other lenders ask for proof that the house had begun trading on the market to ensure that no previous best deals. Lenders restrict arm’s do to prevent fraud that would result if a buyer and a seller conspire to convince the lender to allow a short sale on a lower value than the house can get, or to create a system that the new buyer sells the house quickly returned to its original owner.
Check Real Estate Agent
If you hire a real estate agent to help you sell your house for a buyer of short sale, the agent will have input as selected buyer. Even if you suggest to a friend who is willing to pay cash and be patient, the realtor may want to consider other buyers and try to find someone to make a higher offer. Your real estate agent can help you find someone who is more likely to accept the lender, and possibly not your friend.