Desperate home seller need help!!!

**shalo** · 04-13-2008, 07:23 AM

Hi Every one,I have a 2 years old house in Tennessee, my payoff ballance is $213,000 - my Payment is about $1550 fixed rate interest only (for 120 months)- the house is in a excellent condition, fair market value (as some realtors say) is $205K-$216 - I have to move to California to start my own Biz,ASAP.
I did FSBO since July 2007 , we had almost 60 open houses (360 hours)and 40 people came in, our biggest problem is , we are in a new sub-devision and the builder is still building Houses and will build for next 2 years I guess.
the rental place in California I found is $1600 -
I called the auctioneer they said they will start the bid from $150Kand they willcharge $1500 for Ads plus 6% commision
I called investors they said they'll pay not more than $160K
I found this company for taking over Payments, they said I have to sign the Deed to their name(which I dont want to do that).
and Finally The realtors said we can list the house and for $203K or even less for quick sell( I dont know How quick!!)in 6% commision.
I am not going to do a short sell, I will put the balance on my credit card.

So which way do I need to go if I want to move by the end of April??
considering $1600 rent on the top of my mortgage.
Thank you so much for all the Help

**Codythebest** · 04-13-2008, 11:10 AM

In TN, selling by the end of April? It's not going to happen unless you take a loss...
I'll go with an investor taking over payment and quit claim the deed to him...Make sure he can pay or what's his plan (refi-flip-etc..)

**shalo** · 04-13-2008, 12:04 PM

Thank you Cody, the investor seems like a nice guy but who knows, evreyone can open a website and get a 1-800 number. he said he will try to find some people willing to lease purchase, for couple of years then he will sell the house, but the thing is I dont want to get locked up on a loan so incase I find a sweet deal in California i can put an offer,(for getting a good interest rate and not being affraid of having another loan on my back)

**Jim** · 04-13-2008, 02:23 PM

What would it rent for? It may be better to rent it out.

**Executive Home Buyer** · 04-13-2008, 05:47 PM

I called the auctioneer they said they will start the bid from $150Kand they will charge $1500 for Ads plus 6% commision

First of all, $1,500 for advertising costs IS LOW, VERY LOW! No wonder why they're only charging that amount!

However, what else you need to know is that THE SELLER does not pay commissions. In fact, it's THE BUYER that pays the commission in the form of a 10% buyer's premium. Which means, they pay 10% on top of what they have bid and purchased on!

Sounds like this Auction company is trying to fleece you!

Second of all, I WOULD never have an investor take my house "Subject To" which is the same as them "taking the payments over"!

These so called investors ARE NOT actually taking possession and taking over your mortgage payments. What in fact here is happening is that they will find a Tenant/Buyer to take over those mortgage payments.!

However, what you need to be aware of is "what if they can't or don't pay that mortgage payment(s)! Guess who's on the hook still? YOU!

You are opening yourself to a MUCH bigger problem by doing that than selling your house for a few thousand less!

I wish you luck in your sale!

Tell me! Have you thought about a home swap???

**shalo** · 04-14-2008, 05:52 AM

Dear Executive thank you for your respond, so what you are saying is my best option would be list with an agent for 205K and leave the state till the house sell and give almost 20k out of my pocket.(I guess that would be the safest way right?)
how long do you think I should give them a chance to sell( 2 months or more)?
also If i wanted to change he realtor do I have to come back here and do the paperwork or we can do it via Fax.?
Who would you pick to be you realtor? a person that works for a big real estate companies Like "Keller Williams, Coldwell, BobParks.... "
or someone who open their own company with a new name,(considering that most of the buyers now searching online fo house) ?

**TomAnto** · 04-14-2008, 10:11 AM

Hi there,

Exec. is right don't quit claim the deed to anyone and keep your name on the mortgage. Banks don't like that either, they bargained with you for the financing and could accelerate the loan if they discover what you've done. You don't want to be on the hook for a loan on a home that you can't sell.

Taking the initial loss is the best way to go with the TN home. In the big picture a loss in TN is not as bad as those who are in CA. If you can scrape enough together in CA you may have an opportunity to purchase at the bottom there which is way better than selling at the top in TN.

The market is tight, use an established broker in TN and follow their advice. If it is quick sale that you want, take the measures they recommend. Try to focus on getting into a home in CA, my wife and I did this in 1999 during the dotcom bust. I think the market in CA is poised to repeat history in the near future.

**jron** · 04-16-2008, 07:28 PM

I agree with Executive, that is something to look into your best choice for my personal point of view is list with an agent that you know and trust. In this market nowadays is survival of the fittest. Home swap I think can be an option but you have to find someone who'll be willing to.