It's just negotiating with the bank. Contacting them via fax and phone. It's a lengthy process. I'm an investor and could put an offer in to the bank for a short sale. Call me at 888.605.9190 ext. 1

Regards,
Will Robles

888.605.9190. ext. 1
will@firstcasasolutions.com

I would suggest contacting a real estate lawyer.

Foreclosure or short sale ... either way, you walk out with nothing. Either way, your credit get's damaged but not beyond repair.

Stress will be your biggest payment in this. Try to control your situation the best you can by dealing with your injuries from the accident, loss of your job and home by keeping close to friends and family. I deal with this type of loss a lot in this business. Things do get better and I understand that the loss of a home for any reason is humbling.

Here in Michigan ( as elsewhere ), home foreclosures are becoming common place. I have been selling more bank owned homes than privately owned homes this past few years. For every person getting a great deal on a bank owned home, there is a story of someone’s serious loss. I feel deeply for your loss and injuries. I hope you get feeling better from your accident and find a way to get back to what you had been working so hard to achieve in life. Good luck with everything life places in your path.

Well Faith CW is in the middle of a huge move right now with BofA buying them out. BofA is in the process of moving all California Loss Mitigation back to California from Texas and I think Florida. So I don’t know your exact situation and I cannot really give you advice because you are under contract with another agent, but I hope it works out for you. I just wanted to give you that info.

more specific to your original question "short sale or foreclosure" example of california law is here. You will need to find out if arkansas law shares any of these examples. http://www.sandiegopredatorylending.com/?p=28

agreed, you might be covered under non recourse. A good example of the law is here http://www.sandiegopredatorylending.com/?p=33

Make sure that you are in constant communications with the lender. With having your first and second with the same lender it should make the short sale process easier. You just need to keep calling CW untill you talk with someone who will give you answers. There is a Short Sale Packet that you can get from them that should tell you what you need to provide, also write letters and keep copies to prove that you are trying to take care of the problem.

Anti-deficiency law may apply..you have to do the research and get legal counsel
Why would buyers back out based on the lender?

If your loans were used in the purchase of the property as your principle residence and, the loan was not secured by way of a fraudulent application, your lender may have no recourse other than to take the property back through foreclosure and forgive the balance. Only your attorney would be able to advise you on the consequences of foreclosure in your particular situation. The mortgage and debt relief act of 2007 relives you of the responsibility of paying taxes on any forgiveness of debt in most situations and your tax attorney could advise you on the implications in your specific situation. A short sale may not be in your best interests and may no longer even be a possibility after 5 missed payments. The process is long, draining and can be very frustrating for all parties involved. I wish you the best of luck and quick resolution to your issue. You are not alone.

Proper legal advice should be sought and, the information I provide should not be taken as such.