[carolynpep73]

Without going into a tremendous amount of detail, I'm looking for anyone who can give me some insight on going into foreclosure vs short sale. I don't expect anyone to post personal info, so please PM me. Thanks!

[magicgirl]

With a short sale you request a short sale pkg from your loan company if you have two loans on your home you have to request from both. You have to prove a hardship as to why you cannot pay the loan. While doing this you have your home for sale with a realestate company they will list the house as a possible short sale therefore when the interested party makes an offer it will be for less then what is owed. The catch is if the lein holder accepts the sale you need to have an agreement in writing that they will not seak a judgement for the balance. Sounds crazy if you couldnt make your house payment how is it they expect you to pay them? If you have additional questions on a short sale please feel free to ask, I will tell you it is a slow process....

[nannyisme2004]

Just pm'd you

[mommytoEli]

banks are not always this cooperative, however. i know a few people lately whose homes have foreclosed...even though they could have sold in a short sale.

Originally Posted by magicgirl

With a short sale you request a short sale pkg from your loan company if you have two loans on your home you have to request from both. You have to prove a hardship as to why you cannot pay the loan. While doing this you have your home for sale with a realestate company they will list the house as a possible short sale therefore when the interested party makes an offer it will be for less then what is owed. The catch is if the lein holder accepts the sale you need to have an agreement in writing that they will not seak a judgement for the balance. Sounds crazy if you couldnt make your house payment how is it they expect you to pay them? If you have additional questions on a short sale please feel free to ask, I will tell you it is a slow process....

[AdoptAmiga]

From my understanding, one usually needs to be behind in payments (same as a foreclosure) before a lender will consider a short sale. One still would need to pay off (eventually be sued) the amount that is "short".

Example - amount owed on a property is $100k, it sells for 90k. The 10k difference is owed at closing or if it's a short sale, the money will be owed at a later date. The lender just agrees to "wait". It is better if one can come up with the difference (sell something, get another loan, etc).

It's not an easy process. One needs to work with an experienced short-sale realtor as lenders are not so cooperative. It will also put a hefty ding in one's credit.

[kim wski]

My husband is a Finance Manager and as far as your credit is concerned a short sale with a secondary loan to cover the short sale would be best for protecting your credit score. A foreclosure can take a while to recover your credit and in the end you may owe even more with a foreclosure. I understand sometimes the money is not there, so he always recommends making sure you keep your car payments current and a credit card if you have can, it will help to rebuild your credit after a foreclosure or bankruptcy. We did some short sales on equipment with a business we closed, and it stinks to make the payments (from our personal funds), but I know our credit is still in good shape.

[angelkisses0102]

Talk to a lawyer...regardless.

I have been very open about our financial situation and we got our foreclosure paperwork about a year ago. We tried to short sale it but it didn't work out. (We are in South Florida, btw, and our situation is becoming more the norm than the excpetion, sadly, so I lost all stigma feelings a long time ago.)

We were in Chapter 13 bankruptcy but the IRS just decided it is time for us to go Chapter 7...now the bank will try to rework our loan...they couldn't do it while we were in the 13 and we were facing foreclosure again.

We have been doing this for almost two years (Jan 2007)and we are still in the house (our credit is a disaster but that's another story.) We are hoping that come October 1st, when the 'bail-out' plan is supposed to become available, we will be able to finally rework our mortgage and stay in the house. Our mortgage issues are because DH was umemployed for almost a year...after being downsized three times in 18 months and me being home with DS for a year....yikes. But I've back to a well paying position and DH is making decent money (just started back to work about a month ago.) In our neighborhood...we are the norm...we have two foreclosures to the right of us and two pre-foreclosures across the street...there have been quite a few short sales and many more are in the same position in our 100 house development.

PM me if you want specifics. Good luck!