I need a smart poeple to answer my question?

Question

I haven't pay my house since may and that month i got a broker and we post it for sale, now my income source it's been really bad and i don't know if i will have the money to pay the the 5% to the guy if we sell it . we have the contract until december if we can not sell it what would it happen? can the bank forclosure before that time?

Answer 1

The bank can foreclose before your listing expires.  I've received new foreclosed listings that were still listing with other brokers from when the owner was trying to sell to pay of their mortgage.  The fact that it's listed doesn't stop the foreclosure process.  What you and your Realtor should do is contact the bank about the possibility of selling the home as a short sale.  A lot of people in preforeclosure are doing this;  however, it really requires that your broker know how to handle this kind of sale and the negotiations with the bank.  What will happen in a short sale is that buyers will make an offer on the home but the bank will be the one to approve or reject the offers, not you.  The broker will also have to negotiate their commission with the bank, not you.  There are also many other ways to deal with a preforeclosure so that you don't get stuck with the foreclose on your credit.  You really should contact your bank and find out what options are available to you.  Contrary to what many people think, banks don't want to have to foreclose.  Most of them will work with you if you just contact them.

Answer 2

If you signed a listing agreement and that contracts termination date is in December, then if you do cancel the contract, the broker could sue you for the commission he would have made if the home did sell.  Most brokers wouldn't do this however and if you requested to cancel the listing, I am sure he would respect your wishes and cancel it without suit.  If you do cancel it you need to then retain the services of an attorney to go in and negotiate more affordable terms for you mortgage.  Check out these guys, they are supposed to be REALLY good.  The website is www.feldmanlawcenter.com.  Good luck....

Answer 3

yes the bank can foreclose while the house is listed.  The bank doesn't care that it's listed or not.  If your home does not sell for enough to pay the bank, it's a short sale.  And the bank will send you a 1099, and you get to pay taxes on the "short" as income.  If you have an agreement, you'll have to bring in the money to pay the r.e. agent, unless you can renegotiate.

Answer 4

I suggest you should talk to your bank.  Like you, banks do not like foreclosure either.  You will probably able to come up with some payment term with them. At this time, you are not the only homeowners has housing crisis.  I am sure that there are some agencies in your area whose mission is to help out trouble homeowners.

Answer 5

You should contact the bank who carries the mortgage on your home they are the best to get that answer from...

Answer 6

The bank can and will foreclose--it is just a matter of  when will they foreclose.  They will probably start the legal process when you are 90 days behind in paying the mortgage which would be September.

If you sell it the broker's commission is paid to him at the closing from the buyer's funds.  You don't take the money out of your pocket--it never goes into your pocket to start with.

Answer 7

To avoid the foreclosure you have 2 options:

If you want  to save this house work with the lenders on loan modifications or use the loan modification firm - to change your loan term and interest rate.

Or try to work with the lender on short sale ( sell your house for less, then you own)- bank need to approve the short sale price.

Answer 8

Yes, the bank can foreclose. Talk to your agent and tell him your problem. Perhaps he will be able to reduce his commission. There are times when the seller comes to the closing table owing money. Not every real estate transaction is a winner. If you don't have enough equity in the home for settlement, talk to your lender about signing over the house to them and walking away. You should see a real estate lawyer/bankruptcy/foreclosure attorney before you make another move. Yes, it will cost you $, but it is a lot less costly than making mistakes that you can avoid. good luck.

ps frak1a gave you bad advice. You can owe the money to the agent at settlement and it is not the contractual obligation of the buyer to pay a commission to your agent. That is just plain Wrong!!!