Kimberly Kale, Both Buyer and Seller in Port Saint Lucie, FL

My question about Short Sale

Asked by Kimberly Kale, Port Saint Lucie, FL Fri Jul 25, 2008

I lost my job and my husband still continues to work.Half of our monthly income went to out mortgage which is a interest only. I have tried previously to work with the bank(Chase) and let them know about 8 mos ago I would be losing my job and they stated they couldn't do anything until I was 90 days behind. So I did consult an Attorney and he said to go short sale, because do to certain bankruptcy laws I could not file. I have heard of others buying properties that's why I asked.
As far as hardship, with one income and 2 children yes I do qualify whether the bank thinks so that's a different story, they have yet to respond to my realtor only to acknowledge they received the release forms me and my husband signed. I just want to know about my credit I have a score now about 700. I heard to let it go into foreclosure, because either way I am going to get a damaged record. I have worked so hard to have perfect credit and I am not getting any younger.

Help the community by answering this question:


If you cant pay your mortgage with late pays will lower your credit scores. If the house goes is SOLD prior to a foreclosure would not lower your scores as much as a foreclosure. Sorry to hear all that has happened, however keep in mind many in the country are in the same spot.
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1 vote Thank Flag Link Fri Jul 25, 2008
If you work already with the realtor on your sale your home then goodluck.
But if no and you need real estate service please contact me at 772-342-2585
I can assisting you with the short sale.
Sincerely,Bogumila Kowalec form Real Estate of Florida
0 votes Thank Flag Link Wed Nov 24, 2010
Kimberly 8 months ago and today in the housing crisis are two worlds apart. Call Chase and ask for a modification again they have other programs since 8 months ago. If your loan is with Fannie or Freddie you do not have to be late to qualify. If you want to find out if you have a Fannie Mae or Freddic Mac loan email. This is not a solicition just helpful advice email at

You said they only received the Autorization to release. - Did your realtor submit a contract and a short sale package? Do not let it go into foreclosure as that is the worst of situation for you.
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0 votes Thank Flag Link Thu Oct 1, 2009
I have a Short Sale listing that the owner just bugged and hounded their bank until they would talk. As a result we listed the property, had it under contract in less than a week and got the bank approval within 35 days. They were simple persistant and would not take no for an answer. Bankruptcy is the most harmful to your credit. You may also ask them about a Deed in Lieu of Foreclosure where you just give them the house back. There is no hard and fast rules regarding short sales. It is not easy and it is emotional. We can provide a list of documentation that you will need if you want. The hardship letter is very important. That is the only rule I can find....No Hardship...No Short Sale...or...Deed in Lieu. I really hope this helps you!
Debbie B. Albert
Coldwell Banker Residential
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0 votes Thank Flag Link Thu Oct 1, 2009
Please do not let it go into foreclosure. Although foreclosure drops off your credit report in 7 to 10 years, it stays on the public record forever. Chase is a tough lender to work with but not the toughest, you just need an agent who unserstands and can feel out their current criertion and expectations for a short sale. Let me know if I can help
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0 votes Thank Flag Link Tue Jun 23, 2009
Hire a Real Estate attorney. Another option is modify loan or Deed in Lieu.
See you attorney for your best option of your situations.
Good luck!
Bogumila Kowalec
United Realty Group
0 votes Thank Flag Link Tue Jun 23, 2009
Falling behind on your mortgage payment or dealing with the dreaded possibility of foreclosure can be a traumatic experience. If you foresee that you will soon be unable to continue making your payments – take heart: you do have options. The best thing you can do in this situation is to get fully educated on your options and to be proactive about solving the problem. Visit my website for for FREE advice, check out the FAQ page or give us a call to learn your options.
0 votes Thank Flag Link Fri Jul 25, 2008
There have been some great answers on this site. All are correct really. You shoud try exhausting all you options of course and you should speak with a compitent attorney. My answer is under the assumption that all your options and resources have already been tapped. If then you find there is nothing that can be done, then you go with the short sale only to protect your credit from foreclosure. In the short sale package it should clearly state that the reports to the credit agencies should be stated in a certain fashion to minimize the impact on your credit. Also, the Mortgage Forgivenss Debt Relief Act of 2007 was established to help lenders recouperate any money or make you claim the money saved due to the short sale. This bill was vetoed by Bush in December of 2007. Other than the negative impact on credit there will be no other remifications. All fees to do a short sale should be paid by the bank. Short sales are a little tricky, so please get compitent advice before agreeing to one. Again try to exhaust all of your resources before turning to a short sale, but keep it in your mind as an option or you may run out of time before your realize that a short sale is the only option. Good luck to you and your family. I hope some of this was helpful.
0 votes Thank Flag Link Fri Jul 25, 2008
I am really sorry to hear about your situation. I think I can shed a little light on the subject. I help people who are exactly in your situation. I am not a realtor, nor an attorney. It is partially true that they can not help you until you are 90 days past due. Most banks tell you this to try to get as much money out of you before they actually foreclose. There are many things that can go awry when trying to short sale. The bank requires you to make sure all the paperwork is in good working order. Over there years of doing this I find that if you do not submit a fully completed short sale package, they more often than not disregard the package. What I find that what usually happens when you give someone authorization to speak with the bank on your behalf, they usually have trouble putting together a short sale package. Due to the time sensitivity of foreclosure, they usually do not have enough time to put everything together and find a buyer before the foreclosure sale. The bad thing in this is that anytime this happens and good people are put in the position you are in, their credit is damaged no matter what unless you can reinstate the loan. Reinstating the loan is catching up to all missed payments and any penalties or fees. If this is done the next time you can do this is in 5 years. The good thing about a short sale is that your credit can be repaired in as little as a year, whereas if you were foreclosed on, it would stay on your record for 12 years. The reason why you can repair your credit so fast is because the loan on the house will show a status of settlement. It is a huge upgrade over the foreclosure status. The incentive for a bank to accept a short sale and agree to take less for your house is because the effects of them repossessing the house greatly affect the amount of money they can lend. For example, let’s say a house is going to be repossessed, and this house is worth $200,000 in market value. The bank must withhold 16 times the price of the house. Due to federal regulations you must hold back funds for every house you have on record as repossessions. Meaning this $200,000 house is forcing the bank to withhold $3,200,000 from their lending funds. So by having this house on their records they can not lend this money to anyone until the house is off of their books. That is 3.2 million dollars that they can't lend and can't collect any interest. Please if you have any more questions or you would like my help please give me a call at (224) 875-0330, my name is Reggie.
0 votes Thank Flag Link Fri Jul 25, 2008
In order to do a "short sale" you have to stop paying your mortgage. Have you tried refinancing with another company to a fixed mortgage even to buy you time until you are able to sell? Rates are still good. Once you are 30 days late, it appears on your credit report and stays there and only gets worse from there if you don't pay. And the further behind you are, the harder it is to catch up. You will then deal with foreclosure fees and costs, attorney's fees, etc. and run the risk of having the mortgage co. sue you for any deficiency after the foreclosure is completed and they attempt to sell the property at Sheriff's sale, auction, etc. If at all possible, try to keep paying your mortgage and trying to sell it for what is owed. Even if the Bank accepts a short sale price, it will still harm your credit but possibly not as bad as a foreclosure would. It all depends on how they report it to the credit bureaus. However, if the bank accepts a short sale, due to some new tax laws, you may not have to claim the amount you save(difference between sale price and amount owed on the mortgage). I wish you luck. There are a lot of people in this situation unfortunately. So, the bank may be willing to work with you in order to avoid another loss to them if it goes into foreclosure. If you have already stopped paying your mortgage to do a short sale, I would suggest getting in touch with a loss modification supervisor at Chase. Get a name, and call, write, fax, email constantly until you get an answer from them especially once you get an offer on your house. Make sure it is priced right so it will sell quickly. Again good luck!
0 votes Thank Flag Link Fri Jul 25, 2008
Short Sale or Foreclosure, expect a huge drop in your FICO score, typically around 300 (+) points. As for getting another home, if you go short sale, most banks consider it seasoned after 2 years (per Freddie Mac and Fannie Mae) however, a foreclosure isn't seasoned till after 7 years.

In other words, the benefit in a short sale is that your default seasons faster and therefore you can get another home loan sooner.

Pros and Cons exist with both so, be sure to contact a CPA and Attorney about your particular situation.
0 votes Thank Flag Link Fri Jul 25, 2008
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