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Shortsale he…, Home Buyer in Chicago, IL

Our shortsale is terrible and noone has any sort of clear answers. What can we do?

Asked by Shortsale help, Chicago, IL Tue Sep 18, 2012

We needed to get out of home for job relocation and didn't want to be landlords. The realtor advised us that a short sale was our best option considering the influx of short sales on the market within 1 mile of our unit. Against our better judgement we started the process and now are four months behind and were scared to death we just ruined our credit...

We can easily just walk away, but were trying to minimize damage to credit score. Both of our credit was above 800 before the process, now were already below 700. We are professionals with exceptional careers and zero debt...
Our realtor takes days to respond back and i feel he has way too many listings to juggle and we are just old news.

What can we do? We need to leave for work, can we walk away, just give the keys to the bank?

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Answers

16
I find it hard to believe you got into that situation. Your credit is already screwed up, but walking away from the property will make it worse and since you have good careers and make $$$ when the property does go to foreclosure the bank will come after you for the deficiency because you ave $$$. You should cancel the listing because the agent is an A hole. If they will not do it complain to their managing broker and refuse to allow showings. They will cancel it. Then speak with the bank directly and get caught up in payments. Speak with an attorney about your financial situation and do not listen to some of the stupid responses I have read below.
1 vote Thank Flag Link Wed Sep 19, 2012
Why did you stop paying mortgage ? Since you have a job relocation issue you could have been current and asked for a short sale approval without damaging your credit by not paying for a mortgage,
0 votes Thank Flag Link Thu Oct 18, 2012
I have found that working with an agent that specializes in short sales provide the most successful results. Many agents may tell you that they are specialist in SS, so you need to ask a few questions: 1. How many short sales have you completed within the last six months? 2. how many of those deals were with my bank? 3. How will you go about getting my property approved for a SS? 4. Ask for a couple of referrals of clients he has taken through the process of a successful short sale.
If the agent is skilled he/she should be able take care of your property for you fairly quickly.
0 votes Thank Flag Link Mon Sep 24, 2012
Contact your agents broker and request assistance with this issue. It sounds like you may have listed with an agent that doesn't have alot of experience with short sales but you won't really know until you talk with the broker in charge.
0 votes Thank Flag Link Wed Sep 19, 2012
Against our better judgement we started the process and now are four months behind and were scared to death we just ruined our credit...

Trying to sell your home and being behind on your mortgage are two seperate events.
Why are you late on your payments? ...were you told this will have sell your home faster?
Selling your home for less than what you owe may be considered a short sale only if your lender says you qualify. The relocation may qualify you for this.

As per credit, YES it is ruined, but not forever.



What can we do? ...talk to your Realtor and if you do not like what you are hearing, dump him/her
...obtain the services od an attorney to represent your interests.

We need to leave for work, can we walk away, just give the keys to the bank?
...ofcourse you can, but be prepared to be renters for at least the next 3-5 years because you will not qualify for a mortgage anytime soon regardless of your income.

As per selling a home best options are:

Sell as a regular sale
Sell as short sale - 2nd best option - affects credit but not as much as foreclsoure
Foreclosure - worst option
0 votes Thank Flag Link Wed Sep 19, 2012
Very sensible answers and suggestions. I'd definitely learn from the last decision and weigh my options before making the next move because almost everyone will promise you a solution.
I'm a Realtor, Mortgage Loan Originator and an Investment Adviser Representative. I've negotiated over 500 shortsales in the last 10 years and we're now using a slightly different approach to accelerate a shortsale. By the way, this strategy also guarantees NO 1099 and NO DEFICIENCY BALANCE.
This program is based on a note purchase. Here's an example: The seller's loan is with Bank of America. So instead of negotiating a shortsale (or it can be done simultaneously to see which ones goes faster) we have our institutional investor buy the note from Bank of America. At that point your lender is no longer Bank of America but our institutional investor who purchased the note at a discount and will now approve a reasonable short payoff without having to submit all that paperwork and waiting for months for an answer. So you get to sell your property and your agent gets his or her commission.
Now, buying notes is not a new concept. This is done on a regular basis. I'm sure you've seen cases where your loan is with let's say Chase. Then you get a letter saying that your loan is being transferred to another lender, Wells Fargo, for example. All the terms of your loan remain the same; the only difference is you're now dealing with Wells Fargo, and Chase is history.
I've taken more space than I intended. Please contact me at 773-517-0345 or financialcoach1@gmail.com and if any realtors would like to explore this possibility with any of their shortsales I'll be more than happy to share my contacts.
0 votes Thank Flag Link Wed Sep 19, 2012
I'm sorry about your situation.

But there's a lot of red flags that tell me someone doesn't know how to negotiate a short sale. The market is flooded with agents claiming to have the skills, but experience is what matters.

- You do not have to be late or behind on mortgage payments to qualify for a short sale.
- You can start negotiations with your bank without an offer.
- Depending on your situation, you may qualify for relocation assistance.

If your agent is not providing providing you with the service he/she promised, call the Managing Broker and terminate the contract.

Please talk to an attorney that specializes in short sales.

Good Luck!

Jose Hernandez
Coldwell Banker
312-788-7079
0 votes Thank Flag Link Tue Sep 18, 2012
copy this note and tell the managing broker your going to put the name of the company on the site if he does not let you out of the contract for poor performance,..what you describe is fraud..your screwed because the broker did inot do his job,,
0 votes Thank Flag Link Tue Sep 18, 2012
I'm sorry to hear this!
At this point, it seems your agent has not done their job and you are in a postion to cancel the listing and move on to someone who does care about your situation and knows how to handle short sales.
Find an agent who has extensive experience in short sales and works in your area. Just b/c they have a "certification" does not mean they are experienced. And, one that is partnered with an attorney who is experienced in short sales. To note, no-you are not on the hook for the commission or the attorney's fee in a short sale.
You do NOT want to walk away. This will unnecessarily cause extensive damage to your credit. A short sale really affects your credit for about 2 years. (sometimes less). A foreclosure/walk away is move like 7-10 years. You will want to speak with a real estate attorney if you choose the foreclosure or deed in lieu (keys to the bank) as even the terms of this can be negotiated with the bank.
There's so much more involved here and would be so much more to write. Normally, I meet with my short selling clients for at least an hour or more to go over the whole situation. Please feel free to call if you have questions or would like a recommendation for an experienced short sale attorney.
Sincerely,
Debbie

Debbie Maue GRI, CRS, ABR, CIPS
Short Sale Expert & 23 yr Real Estate Professional
2010 & 2011 Jameson Top "20" Agents

http://www.DebbieMaue.com
773-406-1975 c
312-335-3252 p
312-229-9187 f

A Few of My Current Listings:
http://www.1142michiganavenue7ab.epropertysites.com
http://www.2126lincolnavenue.epropertysites.com
http://www.2314lincolnparkwest.epropertysites.com
http://www.345fullerton2006.com
http://www.345fullerton1307.com
http://www.4912saintlouis.com


Jameson Sotheby's International Real Estate
0 votes Thank Flag Link Tue Sep 18, 2012
I'm sorry to hear this!
At this point, it seems your agent has not done their job and you are in a postion to cancel the listing and move on to someone who does care about your situation and knows how to handle short sales.
Find an agent who has extensive experience in short sales and works in your area. Just b/c they have a "certification" does not mean they are experienced. And, one that is partnered with an attorney who is experienced in short sales. To note, no-you are not on the hook for the commission or the attorney's fee in a short sale.
You do NOT want to walk away. This will unnecessarily cause extensive damage to your credit. A short sale really affects your credit for about 2 years. (sometimes less). A foreclosure/walk away is move like 7-10 years. You will want to speak with a real estate attorney if you choose the foreclosure or deed in lieu (keys to the bank) as even the terms of this can be negotiated with the bank.
There's so much more involved here and would be so much more to write. Normally, I meet with my short selling clients for at least an hour or more to go over the whole situation. Please feel free to call if you have questions or would like a recommendation for an experienced short sale attorney.
Sincerely,
Debbie

Debbie Maue GRI, CRS, ABR, CIPS
Short Sale Expert & 23 yr Real Estate Professional
2010 & 2011 Jameson Top "20" Agents

http://www.DebbieMaue.com
773-406-1975 c
312-335-3252 p
312-229-9187 f

A Few of My Current Listings:
http://www.1142michiganavenue7ab.epropertysites.com
http://www.2126lincolnavenue.epropertysites.com
http://www.2314lincolnparkwest.epropertysites.com
http://www.345fullerton2006.com
http://www.345fullerton1307.com
http://www.4912saintlouis.com


Jameson Sotheby's International Real Estate
0 votes Thank Flag Link Tue Sep 18, 2012
I'm sorry to hear this!
At this point, it seems your agent has not done their job and you are in a postion to cancel the listing and move on to someone who does care about your situation and knows how to handle short sales.
Find an agent who has extensive experience in short sales and works in your area. Just b/c they have a "certification" does not mean they are experienced. And, one that is partnered with an attorney who is experienced in short sales. To note, no-you are not on the hook for the commission or the attorney's fee in a short sale.
You do NOT want to walk away. This will unnecessarily cause extensive damage to your credit. A short sale really affects your credit for about 2 years. (sometimes less). A foreclosure/walk away is move like 7-10 years. You will want to speak with a real estate attorney if you choose the foreclosure or deed in lieu (keys to the bank) as even the terms of this can be negotiated with the bank.
There's so much more involved here and would be so much more to write. Normally, I meet with my short selling clients for at least an hour or more to go over the whole situation. Please feel free to call if you have questions or would like a recommendation for an experienced short sale attorney.
Sincerely,
Debbie

Debbie Maue GRI, CRS, ABR, CIPS
Short Sale Expert & 23 yr Real Estate Professional
2010 & 2011 Jameson Top "20" Agents

http://www.DebbieMaue.com
773-406-1975 c
312-335-3252 p
312-229-9187 f

A Few of My Current Listings:
http://www.1142michiganavenue7ab.epropertysites.com
http://www.2126lincolnavenue.epropertysites.com
http://www.2314lincolnparkwest.epropertysites.com
http://www.345fullerton2006.com
http://www.345fullerton1307.com
http://www.4912saintlouis.com


Jameson Sotheby's International Real Estate
0 votes Thank Flag Link Tue Sep 18, 2012
I would speak to a short sale attorney. Maybe they can help you out. have you called any yet?
0 votes Thank Flag Link Tue Sep 18, 2012
Hi there,

I'm really sorry to hear about your situation but unfortunately a lot of people are in your same situation so just now that you're not alone.

Couple questions:
- Did your Realtor advise you to stop mortgage payments?
- Are you under contract with a Buyer - just waiting on bank approval?
- Are you working with a real estate attorney who specializes in short sales?

If your Realtor told you to miss payments they did the wrong thing. For all of my short sales I work with an attorney who specializes in working directly with your specific bank(s) and she also helps to negotiate and coordinate EVERYTHING. One bonus for a short sale is that her service is free as the bank pays for the closing costs - she may just ask for a retainer up front due to the amount of work she does. The great thing about my short sale attorney is that she knows exactly what each bank wants to see, she knows how to structure your hardship letter and information and she will advise you accurately. I've had many short sale Sellers who have never had to miss payments and when she sees that a specific bank wants to see a Seller who is delinquent she advises.

If you're not currently under contract with a Buyer I really must advise you that working with a different Realtor who is experienced in closing short sale listings is something you desperately need. I've got to say that over the past couple years the majority of my business is helping Sellers short sell their homes. I've got a very methodical approach to short sales and I'm very organized which definitely pays off in the end. I also give regular updates to both you, the Seller, and also the Buyers which helps keep them invested in the process.

Please feel free to call or email me right away to chat.

Jeff Stewart
REALTOR®, @properties
3101 N. Greenview Avenue | Chicago, IL 60657
309-269-3499 CELL | 773-305-0480 FAX
jeffstewart@atproperties.com
0 votes Thank Flag Link Tue Sep 18, 2012
We currently close over 70 Short Sales and REO transactions per year. We have developed many relationships with several Banks. You can call or email me at 773-843-7220 or leo@statebancrealestate.com. We use an automated short sale system the connects us directly with the bank negotiator. At no time should it be a mystery as to what the status of your Short Sale is.
0 votes Thank Flag Link Tue Sep 18, 2012
SS Help,

How was your credit damaged? Simply listing your property as a "short sale" shouldn't affect your credit, unless you stopped paying your mortgage. Was the short sale approved prior to listing it? There is so much more to your situation that everyone will need to know before advice can be given.

Feel free to contact me separately with those details, if you don't feel comfortable sharing on Trulia.

Best,
Mark
Re/Max Edge
Web Reference: http://www.MarkBazzetta.com
0 votes Thank Flag Link Tue Sep 18, 2012
Consult an attorney right away! A Realtor should never advise you to stop paying your mortgage. You're in a very dangerous situation. Walking away from the property and doing a foreclosure will severely damage your credit, and you may be left on the hook for the remaining balance of the loan after the bank resells the property after it has foreclosed.

The relocation may be enough to get you qualified for the short-sale. I'm also sorry to hear about your disastrous experience with your current Realtor.

Keep in mind that your credit will take a slight beating as a result of the short sale. However, it will not be nearly as bad as it would if you go through the foreclosure.
0 votes Thank Flag Link Tue Sep 18, 2012
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