Our Short Sale

Last week we closed on a short sale here in Virginia. Our house sold for about 158,000 dollars less than we paid for it. It lost that much in 4.5 years. Some lessons learned:

* The sale took about six months to complete. The process restarted at least once and the closing date was extended a few times.

* The banks are government-sized bureaucracies. The left hand doesn’t know what the right is doing. You aren’t dealing with a person, but a system. One side was pushing along a foreclosure while the other was working with us on the short sale.

* We had to stop making our payment in order to play this game. Although our payment really was killing us, you can’t do anything until you fall behind. The bank only works with those who quit paying. For us, this was no huge loss as we wanted out of the house and had a good situation to get into on the other side. It made eminent sense for us to do this, but it’s not for everybody.

* We maintained our homeowners policy on the property and continued to pay utilities throughout the six months. The house was well-maintained and I think that helped us, although I’m not sure.

It is good to be free as Mr. Gallagher said!

4 thoughts on “Our Short Sale”

  1. Sorry to hear that you had to give up your house thru a ‘short sale’. My dad in Florida just explained to me last weekend all about that process. He himself is 85 years old and living unassisted in a small rented home. But my step-sister in Illinois lost her police dept job and has lost her house too, only a short sale was not an option. She had bought it not long ago, with no money down, on a GI loan, so by walking away from it she has lost very little. She stopped paying her mortgage some months ago so that she could pay her bills with what little resources she had at her disposal, because she was denied unemployment benefits for some reason. My dad has agreed to take her in, buy another house, and let her live with him, as he says he might be needing some assistance soon. Florida, where he lives, is full of houses being disposed of by short sale and auction, and he says it won’t cost him much to buy another house. He has money, and will pay cash. Not so for many other retirees down there, like the parents of a friend of mine, who lost their house and could not buy another.

    Lord, have mercy.

    Hope your new situation works out for you.

  2. Thanks, getting the short sale done for us is a real blessing. Florida is one of the worst places out there housing-wise.

  3. Glad that you were able to get it done. We looked into buying a house that was a short sale last fall. I think that the loan was sold off in pieces to different and it would have been difficult to get the different owners to agree. So the house will probably just sit there decaying. What a crazy system.

  4. It is a crazy system and a total mess that will drag on for years to come. I think it is best not to own right now.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.