Real Estate Home Mortgages/selling home as is or other options
My wife and I are attempting to buy a home. We have the down payment and are approved for the loan. We had hoped to sell our current home after closing on the new one. But the old house has been needing floor (wooden) repairs and just found out yesterday it will cost thousands of dollars to repair it just to sell it.
The floor is deteriorated badly and could be fixed at great expense. Can we do a short sale? How does this affect our credit. Will the lender expect us to pay the negative equity?
We are in our early 60's and live in Oklahoma.
I'm afraid I am not the bearer of good news. You could possibly do a short sale, but here is what you are up against:
1. Short sales are long in time; it takes months to get the lender to agree to it.
2. Unless you repair the floor before the sale, you are limiting yourself to buyers who are willing to take care of the repairs themselves (they can get an FHA 'fixing-up' loan. Such buyers are few and far between.
Short sales do affect your credit adversely. If your credit right now is very good (750+) you should still be able to get a new loan. Also, if you can arrange financially to close the new loan before the short sale, you'll circumvent any potential credit dings.
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