Foreclosure in Suwanee>Question Details

Deltadawn502, Home Buyer in Suwanee, GA

In an upside down mortgage, with an 80/20 loan. First loan for $160 with Greentree (Fannie Mae), second with another bank. Need to find a buyer...

Asked by Deltadawn502, Suwanee, GA Fri Jan 18, 2013

I am current on all payments... but the near future is going to be a problem. Is short sale my best option? I don't want to think about foreclosure. The second loan for $40,000 said they could work out a workout plan since I am current on my payments. How do I escape this house without worrying about a deficiency judgement in the future with a short sale? Do both banks need to agree on a short sale? Can a attorney put in a clause at closing so both banks don't pursue deficiency judgments? Need advise. I've lost so much money already, and don't wish to lose anymore. Losing 80-160 points in credit wouldn't hurt as bad as losing more cash. Where do I begin??

Help the community by answering this question:


Solomon Greene’s answer

You have already begun by asking the question. So many others don't even bother to inquire and that often does lead to foreclosure.

You ask how to "escape this house," so we may assume that you no longer want to own the property because "the near future is going to be a problem." That is an interesting opportunity for you. There may be retention options available if you want to continue owning this property, anticipate that this problem expected in the near future is temporary and you're current on your mortgage payments. On the other hand, this problem could likely be the hardship needed to get the short sale approved in a timely manner so that you can move on with your life.

You may want to consider contacting The Impact Group in Norcross, a Hope Alliance Partner who is certified by the Department of Housing and Urban Development to provide free housing counseling to home owners with questions exactly like yours. They don't sell houses nor write mortgages, so you'll get objective answers about all of the options available to you at this time and the help needed to implement your plan (loan modifications, special forbearance, etc.).

If a short sale winds up being the right decision, I'd welcome the opportunity to speak with you. But this course of action should provide some peace of mind that the decision you're making is the right one.

Solomon Greene
Associate Broker, REALTOR®, Certified Distressed Property Expert (CDPE), Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners
1 vote Thank Flag Link Sat Jan 19, 2013
I may have a solution for you.
Call me
0 votes Thank Flag Link Sat Dec 27, 2014
There's a ton of scenarios and options, but short sale seems like the best option here. If you have questions. you can view a bunch of answers at

Greentree overall is more aggressive than most other lenders, but I wouldn't worry too terribly much about a deficiency unless you are strategically defaulting. To answer your questions though without just trying to plug my site.

1. A short sale is your best option to avoid a deficiency (that bank has the same rights in a foreclosure). We can negotiate it out more than likely.

2. Yes, all parties holding liens/mortgages have to agree. Typically this is why most agents hate more than 1 loan. Very, very doable though.

3. Not likely. Most short sale approval letter are not "editable." However, we can often get them to re-word their own letters.

4. Sounds like you need an experienced short sale specialist. They can walk you through the process. There's at least one other respondent that I know that can do a great job for you as well.

Sorry I missed this earlier.
0 votes Thank Flag Link Tue Jan 22, 2013
Joshua Jarvis, Real Estate Pro in Duluth, GA
A Short Sale is when the bank/mortgage company agrees to accept a payoff of less than the current balance owed on the mortgage account. Generally, the seller must demonstrate a financial hardship (i.e. job loss, serious illness or death of a primary wage earner, and sometime, divorce) to be able to qualify for a short sale program. A decline in the property’s value would not be an acceptable reason alone for a Short Sale Approval and acceptance by the seller’s mortgage company often takes weeks to months. If there is a 1st and 2nd mortgage, both mortgage companies would have to agree to the final terms.

If you have a Fannie Mae or Freddie Mac loan, then you might be eligible for a HARP Refinance on your 1st mortgage. If you would prefer to keep you home, you might want to explore this as an option. To do so, you can submit a request online at There is no celling on how upside you are in the home for a HARP Refinance.

If you decide that a Short Sale is the best option for your, then working with a knowledgeable and seasoned Short Sale Listing Agent is critical in today's market.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Sat Jan 19, 2013
First of all, I would like to sincerely thank everyone for their time in answering my questions. I don't believe proving a hardship will be a problem even though I am current on my payments thus far. Medical expenses, upside down mortgage, and simply can't afford the payments anymore. My name is the only borrow on the loan, since closing I got married and had a child... Along with a diagnosis of a debilitating disease(been on out on short term disability twice in the last 2 years). My credit score is approx 800. My assumptions about this situation were... Short sale with agent, sell the property hopefully what I owe for the first loan ($160) and free up money to do a unsecured loan work out plan with the second bank for the (40) so they will release the lien and pay them back... which probably sounds crazy, but I could afford to do so if I didn't have the first mortgage payment, or short sale with hafa program. Either way we have family that are willing to allow us to live with them during this transition which is helpful. Any other suggestions?
0 votes Thank Flag Link Sat Jan 19, 2013
In my humble opinion, you don't likely want to go through the Short Sale process if the deficiency judgments cannot be forgiven, Deltadawn502. Based on what you have shared, however, you might have only a couple of options other than continuing to hemorrhage money. And yes, both Lenders would have to agree on a Short Sale. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
0 votes Thank Flag Link Fri Jan 18, 2013
Start with an agent experienced with short sales (ask to see proof of closed short sales).

Good luck!
0 votes Thank Flag Link Fri Jan 18, 2013
A short sale is usually your best option if your bank will let you. I would be glad to try to help you.
0 votes Thank Flag Link Fri Jan 18, 2013
Thank you for your question. To qualify for a short sale your must have a hardship, and the list of acceptable hardships is long and includes too much debt. Yes, both banks need to agree on a short sale (at the same time which can be tricky). Yes, you can put in a clause regarding no deficiency judgement. There is a great deal more to talk about and I am available to you. It is my goal to help you reach your personal real estate goals....never any pressure, just information. Sharon RE/MAX Center 770-846-5252.
0 votes Thank Flag Link Fri Jan 18, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer