Foreclosure in Memphis>Question Details

Tomik Carter, Home Buyer in Cordova, TN

I owe way more than my house is worth. I am thinking about letting my house go into foreclosure. Bank will not accept a short sale.

Asked by Tomik Carter, Cordova, TN Sun Jan 10, 2010

My neighborhood has become not so safe and the schools are terrible. Both of my kids are suffering. I really don't want to ruin my credit but I have to do what is best for my children. Bank would not accept a Short Sale because I am not late on my mortgage.

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First let me say that I am not an expert on this issue, but there are agents who are (they are also agents who say they are and are not). I would be happy to refer you to a local agent who has had experience dealing with the banks and can give you sound advice on this issue.
Joe Spake
Web Reference:
2 votes Thank Flag Link Sun Jan 10, 2010
Though we never advise people to stop paying, if you want to get out from under your property, you may have to. Have to spoken to a Memphis short sale specialist yet? Check -
0 votes Thank Flag Link Tue May 24, 2011

In some cases you don't need to be late. You do however need to claim financial hardship. You can be late on other things and prove financial hardship. The banks DO understand that because most people try to continue paying their mortgage before credit card bills. Unless you are selling to relocate because of a job, a short sale is not out of the question. Keep trying and get the right agent on your side.
0 votes Thank Flag Link Mon Jan 11, 2010

You are smart to be thinking about your credit. So many just bury their heads in the sand, but remember - you will have to pay for your actions at some point. My suggestion is a last "situation reccommendation" - lease out your house. Contact a property management company, if fact contact a few. See what your rent range would be and then move for the sake of your children. You will probably be leasing yourself, but when the market turns.....and it always does (I have been through 3 shifts in real estate), then sell it. PROTECT your credit if you can.

By using a property management company, you will take the emotions out of a crucial finanacial decision, plus they have far more resourses than you. TRY NOT TO LEASE TO AN ACQUAINTANCE - that is a recipe for heart break!

I can refer you a list of property management companies. You are not alone, but there is help.
0 votes Thank Flag Link Mon Jan 11, 2010
So what i hearing is you do not want to live in the house any more because of personal reasons. If that is true and you have had no hardship and your current on your loan the bank will not do a short sale. If moving is important to you, then you should move but you will most likely have to incur the loss of the move. Sorry for the bad information, but given the information you have supplied, I can not see another option. Bankruptcy does nothing to transfer your home ( but it may have something to do if you wish to discharge debt).

Wish you Luck

Keith Manson
First Weber Group
Certifed Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Sun Jan 10, 2010

First it is going to depend on your bank as to the process and what they will and will not allow. Usually it is true most banks will not discuss a short sale until you are in default. It is most unfortunate. Of course either way your credit will be damaged. I will say that your credit will be affected more by a foreclosure then by a short sale. Some of this is going to be determined by what your plans are as to where you are going to live next. The first step if you decide to pursue a short sale is to contact an experienced short sale agent. You need someone that is experienced in these transactions since it is not an easy sale. They take time and patience for sure. If you like I can put you in touch with someone in my Short Sale network so that you can at least discuss your options. You will definitely need to figure out what you are going to want to do after you leave your present home.

Hope this helps,
0 votes Thank Flag Link Sun Jan 10, 2010
Tasha, you might want to also speak with a bankruptcy attorney very quickly. They may be able to guide you through a process where you could have negotiators deal directly with the asset managers in charge of your loan. It amazing how often a third party negotiator is taken more seriously than the homeowner.

Best of luck to you in protecting your financial situation throughout this ordeal, but mostly I wish you and your family all of the good fortune you need. Hang in there Tasha.
0 votes Thank Flag Link Sun Jan 10, 2010
Most banks are not going to agree to a short sale unless you are behind in payments. I would suggest you have a real estate agent do a full workup on your house to see exactly where you stand as far as what you owe and what it is worth. Depending on those numbers, it may not be as bad as you think and there may be a way you can make this work and not ruin your credit.

I would be more than happy to put together the information for you.

0 votes Thank Flag Link Sun Jan 10, 2010
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