Advice/Options for Me After a Short Sale

6 Replies

Thanks for reading! My current Townhouse is going up for Short Sale in a few days. I have already set a goal for myself to have my first investment property by the end of the year, but now I also need a residence :)

I really do not want to rent (though I realize it may come to that), and I really don't want to have to move again (I have a lot of large things--I collect pinball machines for one). I have been looking in Baltimore City, as there seems to be more options (some rent to own, and even better owner financing). I don't have much to put down (at the moment anyway), but I have a decent job with steady income. I also plan to have a roommate or two to help with whatever I end up doing.

Many of the owner financing ads/offers and companies I have seen are pretty shady. 

Any thoughts or advice would be AWESOME. 


reestablish/repair credit...then proceed to step 2

Brian,  you are probably on the right track with owner financing.  But your comment about shady companies offering it is noteworthy.  If that is someones business model they are going to charge you a premium for the owner financing. They shady ones a VERY HEAVY premium. 

You best deal is going to be negotiating with a seller who hadn't even thought about owner financing before.  Great deals often aren't found - they are negotiated. 

Don't be afraid to rent. For long term wealth building it's important to keep you housing expense in line with your income and if that means renting for now, so be it. 

Since you want investment property maybe the best for you would be a 2-4 unit multifamily and live in one unit.

How much time do you estimate before you need to move out of the townhouse?

If you could find a mufti-family or something w/ a rental in the basement, you could have your residence and investment all-in-one.

@Ned Carey you beat me to it.

I can only wonder, if you have a decent job and make decent income then why is your primary residence going to Short Sale?  If your home value is lower then what you owe that should not matter, you can still make the mortgage payments.  

Also, if your in trouble you might consider getting rid of your pinball machines.  Sounds like your priorities might not be in line with what should truly be important.  Not trying to sound like your mom but you should follow Dave Ramsey's advice. 

Renting might be the sensible option at this point.

With little to no money to put down, it's going to be tough to get owner financing or a lease with an option given the impending deadline.  I'm usually pretty risk adverse, but now may be a good time to step-back and regroup.  Put the big stuff in storage, sign a short-term lease on the smallest place you can tolerate and start laying out your world domination plan.  Purchasing the MF prop @Ned Carey  mentioned to use as a base of operations and an income stream would be an excellent first step.  

I am behind because of a job loss 3 years ago. I have tried over and over to work out a way to catch up, and sent in several "good faith" large lump sum payments to HSBC. They did not approve a loan mod each time, and put my payments towards thousands in late fees, legal fees, billing fees, etc. HSBC is evil :)

The mortgage got sold several months ago to some trust fund, with Caliber Home Loans servicing it. They finally offered a mod, but it was not very good. Short selling, getting out, and starting over seems like the best bet. 

I did sell several of my Pinball machines when I was trying to catch up with the large lump payments, but as mentioned above it didn't help much. I am now sort of determined not to have to sell any more unless I really need too. 

Thanks for all of the advice everyone, I am really loving this site. Been doing the podcasts on my commute too--they are awesome!

Any more advice on doing or finding Owner financing would be great! 

Thanks everyone :)

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