Cliff-Jessica: What about short sale?

robertt16 · Joined: 21 May 2008 Posts: 1 1.38 Dollars($)

Jessica and Cliff:
Many thx for the initial feedback.
What about pursuing short sale?
With a small 1st mortgage and a larger HELOC different lender second, is it possible early on like I am?
I can go another 6-7 months but would like to be pro-active here but you don't sound encouraging when it comes to dealing with the lenders in question.
Hard to believe they would rather see me 2-3 months behind in payments before they would consider anything.
Current home listed at $687,000. Both loans total $625,000. Would like to think I'm in a better position than most. Realistic selling price in that down market probably around $600-620k.
Any advice on short sale prospects?
Thx,
Robert

jameshogg

Hi Robert,

If you go for a short sale, I think you'll have a lot of balance left to be paid since you have a larger heloc. And then lender may ask for a deficiency payment. So, will you be able to pay the balance not covered by the short sale?

Moreover, it's good to be pro-active but if you are not behind, or cannot convince the lender that you are likely to be behind on payments, he won't approve a short sale. For this, you'll have to write a hardship letter and send it to him.

To know whether lenders approve short sale before you are behind , refer to a previous discussion on this topic.

Thanks

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Robert,

Welcome to the forum.

I think short sale is a good option for you. Even if you can sell the property in 620k then your deficiency will be 5k. It should be affordable for you. So talk with the lender ASAP.

BTW why are you selling out the property? Cannot you make the monthly payments? If so then why don't you go for forbearance or loan modification? Check out the article 17 ways to protect yourself from the foreclosure trap

Hope this will help.

Feel free if you have any further questions.

Best of luck,
Larry

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