If I start to negotiate a short sale on my house can my retirement (403b, IRA) be touched?
I know that banks look at your assets when negotiating short sales, but are retirement accounts included. Is there a way to hide that money or any money? I am drowning under my mortgage, but I don’t want foreclosure and bankruptsy. I owe 556,000 combined two mortgages and I still can’t sell my house at 540,000. It was appraised at 640, 000 at the beginning of the summer, but there is too much inventory and too few buyers. HELP!!!
Home foreclosures have become a huge problem as of late. Many people can’t even afford to pay their credit card bill much less a house payment. It has even become harder to get a reasonable home loan due to the economic crunch. This is why some homeowners have turned to the mortgage short sale. The problem with this line of thinking is that it could negatively affect your credit score. Keep in mind this is only an alternative to filing bankruptcy or going into foreclosure.
With the housing market in a downturn and hundreds, if not thousands, of homes going into foreclosure, people are beginning to talk more about and pursue foreclosure investing. But, what is it and how does it work? Well, for answers to your questions on foreclosure investing, keep reading.
What is foreclosure?
Foreclosure is a process that is initiated when a homeowner is not able to pay the mortgage on their property or sell the home quickly or efficiently enough. The financial burden is no longer manageable and the house then becomes the property of the lender or bank. Typically, the property is later sold at a below-market prices in order to settle the outstanding debt.
How do short sales work? What are the down sides about buying a “short sale” home?
The biggest down side is that it can take months.
Also, the home owner may not have actually cleared the sale with the lender first. It is entirely possible that the sales price is a bait and switch. Low enough to get you interested, but even at full price there is no possible way the bank will agree to the sale.
If you’re on the lookout for a reliable and effective way to earn money, you might want to check out how to make money flipping real estate. Flipping real estate is the hottest way to make money in the real estate business these days.
Especially with the current credit crunch, if you have the capital, there are plenty of cheap real estate deals since there are more foreclosures and seized real estate auctions available.
