Michigan-Detroit

Am I crazy?...

For wanting to sell my house right now while planning a wedding?
I think I am,but honestly we have two mortages and next year the one is going to balloon,leaving us screwed.
Since our house now is in my name,we figure we should try to do this before we get married because then if we wait both of our credit will be horrible.We are thinking of doing a short sale.
Has anyone done this?Or any adivce on the best way to go about this?TIA

Re: Am I crazy?...

  • edited December 2011
    I don't have any advice about shortsales but once you guys are married I believe both of your credit scores/histories will be evaluated regardless for most inquiries. So you might want to try and sell it regular and see what happens, you might get lucky and if not then evaluate the other options. Have you considered renting it out or do you not want to deal with tenants?
    Lilypie Second Birthday tickers
  • edited December 2011
    I was under the impression that a short sale killed your credit...am I wrong?
    Warning No formatter is installed for the format bbhtml
  • Julz629Julz629 member
    2500 Comments Combo Breaker
    edited December 2011
    I know that short sales have to be approved by the bank.  They also affect your credit ALMOST as badly as a foreclosure.  Not quite as bad, but close.  Are you upside down on your house?  Would you have to take a short sale? 

    Balloon mortgages are the worst, I'm sorry to hear you're in that situation.  Are you POSITIVE you wouldn't be able to refinance into a new mortgage?

    This is going to sound semi-shady, but let my tell you what my uncle and his FI did with her house.  They are both older (late 40s) and they got engaged last Christmas.  They wanted to live in her house, but she was upside down on it so she got approved for a short sale and sold it to my uncle, who the bank had no idea was her FI.  So they get to keep the house and they actually owe less on it.  They were only able to do this because the house was in her name only, and his credit was good enough to qualify him to purchase it alone.  So now that the whole short sale process is done, they are getting married (JOP) and it doesn't matter that her credit sucks because the mortgage is in his name only.
    Photobucket Lilypie Second Birthday tickers BabyFruit Ticker
  • terbear_86terbear_86 member
    100 Comments
    edited December 2011
    In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/local-wedding-boards_michigan-detroit_am-crazy?plckFindPostKey=Cat:Local%20Wedding%20BoardsForum:88Discussion:f41f9663-9682-4f8f-9d6a-1120b7248a2fPost:1b2c8e30-5970-467b-8d71-56bcae1ed8c8">Re: Am I crazy?...</a>:
    [QUOTE]I know that short sales have to be approved by the bank.  They also affect your credit ALMOST as badly as a foreclosure.  Not quite as bad, but close.  Are you upside down on your house?  Would you have to take a short sale?  Balloon mortgages are the worst, I'm sorry to hear you're in that situation.  Are you POSITIVE you wouldn't be able to refinance into a new mortgage? This is going to sound semi-shady, but let my tell you what my uncle and his FI did with her house.  They are both older (late 40s) and they got engaged last Christmas.  They wanted to live in her house, but she was upside down on it so she got approved for a short sale and sold it to my uncle, who the bank had no idea was her FI.  So they get to keep the house and they actually owe less on it.  They were only able to do this because the house was in her name only, and his credit was good enough to qualify him to purchase it alone.  So now that the whole short sale process is done, they are getting married (JOP) and it doesn't matter that her credit sucks because the mortgage is in his name only.
    Posted by jholbel[/QUOTE]

    Well that is one way to do it Julie :)

    OP, another thing about short sales is that yeah they affect credit badly, but what happens is this: Example. If you owe 150,000 on your house, the bank says ok, short sale, we will sell it for 125,000. The bank writes off the extra 25K that you owe. Catch: You have to claim the 25 k on your tax return as income for the year and pay tax on it, because it literally is income, money you receive that you originally owe.

    A short sale is not something to be taken lightly,  plus they have the added fact that most short sales RIGHT NOW, take more than 6 months to process. In a good economy it can take 3 months, but its much worse right now by sheer volume.

    If you can finagle a way around it, ie: renters or selling to a member of FI family or something, you might want to look into that first.  Where is the house? PM me if you have any more questions.
  • edited December 2011
    I would rather not deal with tenants.Yes we are upside down in the house.Although selling to FI is a great idea,we kind of need a bigger house.I talked to a friend/agent and she said my credit will be screwed for about 3 years.A forclosure I thought screwed your credit for 7 years.Thanks for the advice,it's good to know!!I will keep you all posted
  • edited December 2011
    I sold my condo as a short sale (closed in August) and have yet to actually look at my credit score to see how bad it took a hit (I had an awesome score... oh well ha). As for them taking forever, knowing that going into the process, my agent (awesome) got the ball rolling with my mortgate co. and put in a fake offer to see if they'd bite. So she was connected to a live person and could hit the ground running when we actually did get an offer. I think it took about a month to 2 mos. from the time the offer came in to the close.

    So as for your original question if you are crazy for selling, no, but it will add stress... at least for me it did, knowing all the money I kept dumping into my condo could've been for the wedding! Good luck on this.
    June 19, 2010
    Photobucket Anniversary
This discussion has been closed.
Choose Another Board
Search Boards