Question about short sale?

Question

I met with a real estate agent today to put our home up for sale. After doing some research, he came up with a number. Its lower than what we owe...considerably lower. He told us about a few options, 1 being a short sale. He explained it to me and I pretty much understand, but I have a few questions. Does the lender not agree to do a short sale often? Do we keep paying our monthly payments? Is this a good alternative?

Answer 1

Does the lender not agree to do a short sale often? It’s really a case by case basis. I think the lender usually considers how much they’ll lose on the short sale vs. the cost of foreclosing and then selling themselves.

Do we keep paying our monthly payments? Talk to the agent about this. My understanding has always been that you need to have missed payments for your lender to even consider this option. Then again, by not paying, you take the risk of being foreclosed.

Is this a good alternative? Alternative to what? The best choice is not to sell if you don’t have to and can keep up with the payments. It’s certainly better than foreclosure, though in some states your bank can come after you for the balance.

Answer 2

My aunt used a loss mitigation company to "redo" the terms of the loan at an interest only payment at 3.5% for 4 years.  The company did some arm twisting with the bank to get them to accept these terms to avoid a foreclosure.  She went through the free evaluation form at www.totaldebtsolutionsllc.com and a rep called within 24 hours.  Best of luck whatever you decide.

Answer 3

You keep making your payments.    If they will agree or not depends on how short you are.

You should start getting the approval now, without a buyer, as it takes about 12 weeks to get the short price approved.