Foreclosure in 07103>Question Details

Brokefoot, Home Owner in 07103

My home is underwater and I have two mortgages. Have not worked since 9/2009 and savings are depleted. I was approved for a short sale in 9/2011

Asked by Brokefoot, 07103 Fri Dec 30, 2011

Since then I have received no offers. At this point I just want to get out of the property. Green Tree holds the first mortgage and is unwilling to do a deed in lieu because Bank of America holds the second mortgage. My thought is to try to strike a deal with Bank of America to settle the loan by making a partial payment . I spoke to lawyer who recommended that I just let the property go into Foreclosure and file chapter 7 to protect myself from any deficiency judgement. I'm in my mid 40s and the thought of waiting 7 to 10 years for a bankruptcy judgement to clear concerns me. Are there any other options???

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Kimberly "KIM" Wojcik’s answer
Agree with both responses. Do not give up. Your agent needs to aggressively price your home to obtain offers. Also your agent should have short sale experience. Constant professional contact with your lender. Sometimes the sellers lender will not accept the amount of the short, in that case your agent should be able to supply your lender with a letter of explanation of value with recent sold comparable jomes as well as pending and active comparable homes to prove the value in your market. Good luck and keep trying !
2 votes Thank Flag Link Fri Dec 30, 2011
BEST ANSWER
First things first;
If your Shortsale hasn't had any offers in three months, you need to lower the LISTING PRICE!
I presume that the Bank didn't tell you how much to list it for, did they?
It is in your best interest to follow thru on the SS for several reasons, not the least of which, is that the Bank is letting you live there rent-free. They would rather have it occupied, particularly by someone who cares.
It will be better for your credit too.
Has your Listing Agent done a CMA to see where Market is?
With the Hardship approval, you've got half the battle won; don't quit now!

Good luck and may God bless
1 vote Thank Flag Link Fri Dec 30, 2011
If you haven't received any offers on your short sale, you need to reduce the price continuously until the offers start coming in. Did Green Tree give you any idea of what they will accept?
Normally in a short sale situation, the primary lien holder negotiates a payoff to the secondary lien holder. Typically the 2nd gets pennies on the dollar and it's a take it or get nothing proposition. The secondary can then come after you to sign a new note with them for the balance, or will file a deficiency judgement against you. With that deficiency judgement, they can attach it to any other properties you might own.
From a credit standpoint, whether or not they foreclose or you short sale, the penalties are about the same. I posted a great blog about that on my face book page. If you'd like that information, contact me.
If you just want to get out of the property, you can move out. The banks don't like that you do that because there is risk involved, but if you mentally need to move on, do so. Keep the house on the market for a short sale and work aggressively to get it sold with your agent.
The flip side, is that you are probably not paying anything to live there, so if you can stay, you can start rebuilding your savings.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Tue Jan 3, 2012
You can likely still have short sale approved, but it sounds like your home is overpriced. What you need is an experienced short sale agent ( that doesnt necessarily mean certified - and certified doesnt mean experienced. ) Find someone who has a proven track record of success with closing short sales in your area. Someone experienced can probably sort this out for you, and you can successfully short sell and satisfy both the first and second. Dont give up now. Short sales frequently come with many obstacles, and 95% of the time they can be overcome with the right help.
Web Reference: http://www.homesbyminna.com
1 vote Thank Flag Link Mon Jan 2, 2012
You should ask your agent to do a CMA to include research on the number of short sale listings in your area that are on the market. He or she can then determine a competitive price in which to market your home. If you are looking to get from under as soon as possible, then aggressive pricing is the key.

Lastly, find out if your lender participates in the HAFA program. If they do, you could see if you qualify for this program in which BofA also participates.

Good luck
1 vote Thank Flag Link Fri Dec 30, 2011
Is your agent experienced in short sales?

Very often the agent representing the buyer will talk to the listing agent to find out just how experienced the listing agent is. If the listing agent has no experience, a good buyer's agent will try to explain why it is not a good idea to make an offer on that home.

If your agent is well versed in short sales and has either the experience and/or the training, it should be a slam dunk. The only thing preventing you from getting offers in that case would be price or some very unique situation such as updates, surrounding area of the exterior of the home, pet odors etc.

You stated you haven't worked in over two years, so I'm curious as to how many payments you are behind and surprised that they haven't started foreclosure proceedings. Perhaps a little more information from you might be helpful in order for us to help you.

Don't give up.
1 vote Thank Flag Link Fri Dec 30, 2011
Do a LOAN AUDIT on your Mortgage's...( Lots of RESPA were broken)

RELIST with a CDPE Agent....

Call: 721-556- 5472

or Email: Ignacio.Realtor@yahoo.com
1 vote Thank Flag Link Fri Dec 30, 2011
Start by finding yourself an attorney that has experience in this exact situation and explain your concerns. Second, find an agent that has experience and has actually closed a couple homes in short sale. The experience is necessary as the agent with experience in short sales will have an understanding of what it is going to take to get the home through the short sale process and to closing. Finally, lower the price of the home until you get offers on it. Then it will be up to you and your agent to have continual follow up with the bank to make sure it goes to close. A good agent will be able to keep the buyer and their agent involved and in the process so they do not loose interest while you are waiting for bank approval of the short sale. That agent will also understand and be willing to have constant follow up with the bank to make sure things are progressing to approval. Good luck with your unfortunate situation.
1 vote Thank Flag Link Fri Dec 30, 2011
Our solution will allow you to avoid both the bankruptcy and the foreclosure.
0 votes Thank Flag Link Sat Jan 7, 2012
Mr. Brokefoot,

My name is Khalil Bashir. If you could give us some more information about your situation in regards to the loan balance and some minor details, we may be able to purchase the mortgage note direct from your lenders. If we are successful we will waive the deficiency judgement. We already do business with the lenders you have mentiioned above so buying the note would not be hard. Give us a call and we can discuss things in more detail. 281-407-0772
0 votes Thank Flag Link Sat Jan 7, 2012
Continue to try to short sale if they will not do a deed-in-lieu-of, (it is understandable the first does not want to do this if the second is not on board) foreclousre is devastating to ones future, as you can see in the information I will provide below. Do not be foiled short sale and deed-in-lieu-of are not an easy way out they have damaging ramifications as well.

As stated below keep lowering the price.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of Foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like; insurance rates, your job (yes employers are checking credit records these days).

Your credit score will be reduced by 200-400 points, short sale and deed-in-lieu-of a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure – “YES” Short Sale and Deed-in-lieu-of are forms of foreclosure
• Buying after a Walk Away Foreclosure
The waiting period is 7 years
• Buying after a Foreclosure
The waiting period is 5 years with 20% deposit up to 7 years.
• Buying after a Foreclosure with Extenuating Circumstances
The waiting period is 3 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.
• Buying after a Short Sale
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Short Sale with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.

In addition to the waiting period and minimum down payment, you will be required to have a minimum FICO score and the home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.

Good Luck
Bob Patrick
Buy a home after foreclosure, short sale, deed-in-lieu-of or bankruptcy expert
Movin-On LLC
Helping families.people that have or will loss their homes get back into another in as little as 6 months
0 votes Thank Flag Link Thu Jan 5, 2012
You need a CDPE,(Certify Distress Proprety Agent) short sale agent. Short sale is not easy as they sound. Here is you anwser go to this site; http://hosted.cdpe.com/GEUBERT
0 votes Thank Flag Link Sat Dec 31, 2011
First, sorry for your troubles. I'm sure that these problems with your home are not helping your mood, and probably not helping in your job hunt. That said, you're not really going to be able to rebuild your credit until you find a new source of income. I've had several friends who after years of having difficulty finding stable employment have recently found good paying jobs. Hopefully 2012 will bring you good news on the job front.

It sounds like Green Tree and BOA are not on the same page regarding your home, so I doubt a foreclosure will go smoothly or quickly. You can't control their behavior, only learn to live with their actions.

Have you spoken to your lawyer about this partial payment scheme? I think you need legal advice on this.
0 votes Thank Flag Link Sat Dec 31, 2011
If you decide to go with a CDPE agent, please verify the agent has short sale experience or resources to assist with getting your short sale through. Being certified does not qualify a person to work the short sale. Being in business 26+ years I have seen alot of certification and I believe education is crucial and should be taken seriously, but I have also seen many certified (completed a cousre) agents not complete the actual tasks they are certified for. The certification does not automatically determine if an agent is qualified or really knows how to handle your particular short sale situation. I personally was speaking with an agent two days ago who is certified CDPE, he never worked a short sale and admitted to me, he does not have a clue how to go about working the short. I am not loioking for your buisiness, you are not even close to my area - I am not certified but successfully closed 9 short sales in the last 3 years. Please for your own benefit have the agent you are considering give you examples of past experience and/or at least inform you how they are going to market your home as well as communicate with your lender! Again Good LUCK!
0 votes Thank Flag Link Sat Dec 31, 2011
If you have the short sale approved and received no offers at that price you should review with your agent what their thoughts are about your position in the market. Also you should ask them about what they have done to market your property. Lots of agents that take short sales unfortunately do not market the property at all or effectively. You should ask them about what they have done.

You might also consider a price reduction to be more competitive and then try to submit the offer you get to the bank, even if lower than the initial price they approved. Exhaust your options before going the foreclosure/bankruptcy route. It is a much longer road to recovery.

You should check out this post by KCM Blog:

http://www.kcmblog.com/2011/12/29/best-post-of-2011-short-sales/


Good luck!
0 votes Thank Flag Link Fri Dec 30, 2011
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