I would suggest you find a real estate attorney and real estate agent that are short sale experts.
I would also contact an accountant to go over your financial situation. Short selling your home is not your only option. Your attorney or your agent would have to get in touch with your Lender to talk about what your options are. Other options might be Loan Modification, refinancing, although if your credit is compromised that will not be an option, deed in lieu of foreclosure, and some Lenders allow you to waive mortgage payments for several months so that you can catch up with your finances.
I hope that helps, good luck.
As a Realtor, we see so many different situations with sellers. Most recently, a short sale was approved and ready to close, when the seller was told they would need to bring 25% of the deficiency to closing. So happens, this seller needed $25,000 to close. Use a law firm that specializes in short sales.
All the Best,
A couple of ideas for you...
If your future financial outlook has a positive viewpoint, you may want to talk with your current mortage provider about any possible forebearance. That might give you a needed break from having to continue to make monthly payments on your existing mortgage.
You may also want to research the Making Home Affordable program (you can google or bing it, or whatever search engine you use). See if you might qualify for a loan refinance or loan modification program. What is key here is how much you owe on your mortgage versus the market value, and if your payments exceed 31% of your pre-tax monthly income, and also if you can realistically hold on to your home considering your future income.
Work closely with your agent as I'm sure that he/she has your best interest at heart.
One final thought on moving forward with a short sale. Time is your best friend here, the more you have the better for you. Perhaps you can move forward with a potential short sale process and have an agreement with your agent to have the ability to cancel (a listing agreement or purchase contract) if a more favorable avenue opens up to you.
Good luck! I hope it all works out in you favor.
Learn more about a Short Sale: http://ShortSaleHomeExpert.com
Again, no matter what information you receive... Every short sale is different, no two are the same. Consult an attorney, discuss the details of your specific situation, and then decide if it makes sense for you.
Before moving forward with a short sale listing, I put my clients in contact with a good Real Estate attorney, so they can ask questions, know what their options are, and understand how their credit may be affected by the short sale. I would suggest consulting an attorney before signing any further paperwork. Hope this helps.
Best wishes to you.
Peggy, if you decide to do a short sale, your agent will give you an authorization form for you to sign allowing her permission to speak to the bank on your behalf, you didn't need it before now You clearly have a hardship especially when you have to shell out money from your savings every month to survive. Don't continue to throw good money after bad. You do not have to ask the bank's permission to short sale your home, not in this day and age, and it sounds like the deficiency, providing your agent finds a buyer timely, should be minimal for the bank. Do something Peggy, you're probaby priced too high, face the truth and again all the best to you, especially to your health.
I would strongly recommend that you start the short sale approval process with your lender.
Explain your situation.
The other option might be that if you are "close" to the payoff amount the lender might let you pay the balance on a promissory note.
The problem is that as you approach the end of your escrow, the timelines are very strict. Your failure to properly plan ahead could produce legal liabilities that at this point are avoidable.
Being "underwater" as they say is not the only reason to request a shortsale. Underwater meaning owing more than what the market will pay for it currently. There are many factors to which a property owner may want to request a shortsale.
If you are having a hardship, financially, or physically and you are getting drained monthly... it would be another reason to consider a shortsale. If you do not see yourself being able to come up with the monthly payments for however many months from now is another reason. One way or the other, the outlook doesnt look promising... I send you my prayers. Even if the SSi and the Charity do come in for you, how long will that last you? The home prices as you said continue to decline and there is no end in sight, at least, it is not going to drastically rebound and suddenly put you safely in the clear.
The best thing is to be realistic to the situation and to not have all your eggs in one basket... Fill out the hardship and whatever other docs and have them inline as a back up. It is better to be proactive and have everything in place, just in case and hope to not have to go that route.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
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