Jennifer, I was just reading the Fannie Mae announcement 08-16 , Bankruptcy, foreclosure, and pre-forclosure sale policy changes. It stated that, ...

"A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the mortgage, as agreed to by the lender, investor, and mortgage insurer. Due to increased incidence of preforeclosure sales, Fannie Mae is extablishing a 2-year elapsed time period for reestablishing credit following completion of the action"

This meand above the hit you will take to you credit score. You will not be able to buy a Fannie Mae backed home for at least two years. I would amost guarentee that other secondary market lenders will follow suit.

Jennifer:

Unfortunately, there are no guarantees in a short sale. Each bank is different. You often get different results from different negotiators at the same bank. And, the Realtor on your side, who is helping to negotiate the short sale also matters. Make sure you choose a professional who has done this before. They will have some insight into how to negotiate with the bank and help to structure the deal to your advantage.

Here are some of the things you can do:
1. Stress the fact that this is a forced sale, and not something you have chosen to do. This usually plays well with the bank.
2. Stay current on your payments throughout the entire negotiation. (Don't pay attention to the stories that you have to be behind in your payments to negotiate a short sale.)
3. Barter for your credit only at the end. Try to get a commitment, in writing, that they will not report anything negative on your credit. If you can't get that for nothing, then offer something in return. Often, signing an unsecured note for part of the 'short' works. These notes are often interest free and payments are due over 5 years. If you end up short $40,000 and agree to pay back $20 of it in exchange for a clear credit report it might be well worth it.
4. Remember, get all commitments from the lender in writing. That way, if there is something reported to the credit bureaus (often the different departments in the bank don't commicate well between themselves), you can use your written agreement to correct it.

Contact me directly if you need help finding someone to walk you through the process and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty

Unfortanately there is nothing set in stone, different banks handle their short sales different than others. You should ask the person who is charge of negotiating your short sale. If you absolutely have to sell, then you have to do what you have to do and work on rebuilding it afterwards. i would buy your new home before teh short sale closes or at least the same day so the new mortgage company doesnt see the short sale. good luck

There is nothing, unfortunately. I would contact the 3 credit repositories and see if you can get an answer out of them (and I am sure the Pentagon will tell you where they have the nukes hidden).

The other idea is to work with the lender to make a payments on the short part in exchange for not making a bad mark on your credit! Also, let them do the new loan on your home where you are moving (since they can make some money there!). They may even pay for some of the short with a higher rate on your new property.

Let's make it into a positive for you and them!