If CITI is your second lender then please pray a lot as I am praying for the fate of one of my sellers. They are abnoxious and uncaring. I think they really are under a lot of water so they are not letting me close on my transactions for the second offer I have negotiated on this loan. Most seconds take $3000 from the first lenders, release the lien and call it a day but not CITI. Even though I am getting Citi $8000 on a $70,000 second mortgage, they want $15,000 even if I or anybody does not take anything home, they don't want to listen. The worst thing is they don't even care. The worst thing is that in NJ, they cannot recover anything from the seller, if the seller files for bankruptcy.

Hey V-town seller,

I haven't heard anything about Everhome yet, but we may find out by listing your house & bring an offer to your lender. Banks are more ready to cooperate than ever. If you would like to discuss your home value & listing process, I'd love to hear from you.

Regards,
Ginger Kelley

Coldwell Banker Solano Pacific 707-334-0373

doing a short sale means you must demonstrate hardship, e.g. a current financial statement showing all your income, all your expenses, assets and liabilities. Then the lenders will want you to prove your hardship by getting copies of paystubs, tax returns, bank statements. You also need to write what is called a hardship letter. That is a paragraph or two detailing what led up to to this predicament.e.g. loss of job, illness, resetting of interest rate etc.

In my recent experience second lien holders will release the lien for say 5% to 10% but reserve the right to determine a deficiency after the short sale. That makes the lien an unsecured note after the short sale.

This advice assumes you are talking about your own personal residence, not an investment. You won't have a tax obligation from the forgiven debt on your personal residence which you might have in a foreclosure or investment property. Nevertheless it's always a good idea to run your situation by an attorney specializing in these matters as there are always new ideas floating around.