Quote:
Originally Posted by Choker
Having nothing to show for it is better than having to bring 18k to the table to close a sell on it, or like you suggest let the bank take the hit for the 18k she would be upside down on and walk away? Do you really think banks will still be doing short sells in 5 years? As far as I know it has the same effect on a debtor as a foreclosure does, if not it should in my opinion. Rent would be about $900 to $1000 for the home anyway.
I advised her to rent until there are signs of depreciation slowing down or reversing. She won't listen to me though, she's got my hard head. LOL
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Short Sales are a bargain. The bank knows they have a troubled property and that's the best way out. If the owner is foreclosed, the bank has to buy it at the courthouse steps at the amount of mortgage owed. Basically buying it from themselves. Then turn around and put the property on the market for a lot less than the current mortgage. Short sales means the house isn't trashed and most foreclosed houses are and the bank is willing to get what would the current price.
House behind me is appraised at $105K went for $22,500. Worth $150K a few years ago. Prices might go lower but this is a hell of a good time to buy. In 10 years you'll be going "why didn't I buy those houses?" Nobody is smart enough to know the exact moment of a bottom market, being houses or stocks. But you can see the trend.
Last year, I helped a almost homeless friend buy 2 houses for $17,200 he borrowed from family. Got him 2 houses at the tax sale. Now worth close to $100K and has a place to sleep, not a friend's sofa. Found a house for GF's brother $17,500 fixed & flipped for $85,000. He blew a $50K profit on a house I asked him to buy.