Home Selling in Otsego>Question Details

Heather, Home Seller in Minnesota

I am desperate! I am doing a waiting to get a PA on a short sale. The bank already did a BTO and I just got

Asked by Heather, Minnesota Wed Jun 11, 2008

the price down to wear I think it will sell. I have been told to skip a payment and the bank will pay more attention to me, but I feel they are going along with the process. Is the bank laughing in my face because I haven't missed a payment? Should I miss a payment to show I am desperate??

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5
The bank's definition of hardship is probably far different then yours. Hardship to the bank means that you are destitute and the bank gets as much money as they can from you.(this is reality).
0 votes Thank Flag Link Fri Sep 2, 2011
Heather,

STOP!! Whatever you do don't skip a payment. You hold far more cards if you can prove hardship to the bank without being late. You need to get the help of a good real estate agent who specializes in helping people work on short sales. It is a specialized skill and shouldn't be done by just any agent.

The bank wants to see that you have lost your ability to pay the mortgage and more than anything they want to see that you aren't trying to take money away from them needlessly. First things first you want to list the home for a break even price and your agent will need to keep very good records of everything they have done to obtain the break even price. It isn't a fast process but you will then need to increment the price down until you get an offer. Once the offer is received your agent will need to submit it to the bank along with their marketing report. I hope that helps.

Please don't hesitate to contact me if you have any further questions.

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Thu Jun 12, 2008
It's unclear as to whether or not you've actually gotten an OK from the bank that they will accept a short sale. if they have answered you that they will accept a short sale, then I'm not sure what you're desperate about. As one of the other answerers indicated, the bank won't just verbally agree to a short sale, you have to prove to them that you are in a hardship situation. More and more these days, banks are accepting a short sale situation even though there have been no missed payments. And, Aaron, nowhere does this seller indicate it was an agent that advised him to miss a payment. You need to make sure the lines of communication are open about what you're trying to do. You can't just expect the bank will accept a short sale because you know it needs to happen, there are steps to be followed. Establish contact with someone at your lender's office in the department that handles short sales. That way, you'll always be able to operate with a human being with which you have a rapport. If you have an agent or a lawyer, that would be a good assistant to have in the process. Good luck!
0 votes Thank Flag Link Wed Jun 11, 2008
That's stunning that the agent is recommending you miss a payment... he/she should not be giving such advice. If you've shown enough of your financial distress to the bank, they will work with you. Being honest and persistent with them is best.
0 votes Thank Flag Link Wed Jun 11, 2008
Heather -

The bank is not laughing at you. If you have asked the bank if they will accept a short sale, and they have said yes, they should ask you to fill out a financial packet which verifies your income, assets, and liabilities. Getting this to the bank asap will speed up the acceptance process once you have a purchase agreement. Skipping a payment is not the answer...you will do more harm then good, in my opinion.

I know someone in the short sale situation. She has been in contact with the bank constantly and given them a time frame when she will no longer be able to make payments. They have so far been very understanding and are willing to work with her and keep the home out of foreclosure. The banks know how desperate people are because they have so many people in your situation. So far your credit has not been hurt by the situation, missing a payment could put a dent in that, as well as your relationship with the bank.
0 votes Thank Flag Link Wed Jun 11, 2008
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