Selling House In Foreclosure?

[Lilyat108x]

Hi,

I have a discharged Ch 7 and did not reaffirm my house. I have about $700.00 in HOA fees since filing my bk and since the discharge. There is a lien on house from HOA that was put on before filing bk and I know I only owe the fees since my filing bk if I do not stay in the house. I have received a intent to accelerate letter from BOA that this house is in foreclosure and I could do some workout to stop the foreclosure if I paid almost $20000 fees and back payments to bring it current. The mortgage is a FHA. I owed appox $132000 before bk and now BOA says somewhere around $150000. I looked on zillow and estimate value for my house is $117,150. Someone from my neighborhood stopped my adult kid in front of the house and wanted to know if the house is for sale and that he was interested in buying it. He supposedly already owns 4 houses in the neighborhood.

I have not had the chance to speak to him yet to get any other information. Should I even consider this and if so, how do I know what to ask for or am I better off not considering any sale and walking when it's time?

Thanks!

[justbroke]

If you wanted to do it, you'd still need to work with BOA for what is known as a short sale, since you owe more than it is worth. It is usually not worth your time to do so, and in many cases, ends with the short sale offer, from the bank, being pulled at the last minute. It could be worth the headache if you have a good Realtor and the bank is willing to play ball (on the short sale).

I had some people offer to buy one of my rentals. The deal fell through. After that, I just let the bank go through the normal foreclosure process as I had surrendered the rental in the bankruptcy.

So, what to ask for? You could hire a Realtor to deal with the sale. The speculator, which is what I call that person, probably wants fire sale pricing and will probably not pay market value anyhow. It would really be up to you if you wanted to do this short sale and, again, you'd need to work with your bank.

[HHM]

Probably not. As stated, what you are looking at doing is a short sale. And with outstanding fees and such that cloud title (the HOA lien), that will need to be dealt with in order to sell the property (meaning you would still need to come out of pocket $2000). Also, if there is a 2nd mortgage (or HELOC) that must be dealt with as well.

The only benefit (and may make it worth trying) is that doing a short sale may get the house out of your name faster so you stop accumulating HOA dues. The harm in trying, however, is that a short sale process will likely delay any foreclosure process that is ongoing (and in FL, I understand the process is already molasses slow). In reality, only around 10% of short sales ever close. But, at least in your case, you have an already identified buyer (speculator) so at least you can short circuit the process of trying to find a buyer and listing the property.

In the end, probably not worth it, but it is up to you.