IN MY EXPERIENCE WITH SHORT SALES, I WOULD HAVE TO SAY THAT IT WOULD BE IN YOUR BEST INTEREST TO MAKE WHATEVER PAYMENTS YOU ARE ABLE TO MAKE. ONCE YOU COMPLETELY STOP MAKING THE PAYMENTS, IT IS ONLY A MATTER OF TIME BEFORE THE BANK WILL START THE FORECLOSURE PROCESS ON YOUR HOMES. I BELIEVE THAT A FORECLOSURE WILL HARM YOU UCH MORE THAN A SHORT SALE. THE SHORT SALE PROCESS IS NOT STARTED UNTIL THEY RECEIVE A CONTRACT FOR THE PROPERTY. ONCE TEHRE IS A CONTACT, THEN THERE IS A PACKAGE THAT MUST INCLUDE THE CONTRACT, MARKET ANALYSIS, HARDSHIP LETTER AND OHER ITEMS FOR THE BANK TO APPROVE THE SHORT SALE. YOU MUST BE ABLE TO SHOW TRUE HARDSHIP AND PROOF THAT YOU ARE UNABLE TO MAKE YOUR PAYMENTS.
IF YOU HAVE ANY OTHER QUESTIONS, FEEL FREE TO CONTACT ME AT 708-646-6533
HAVE A GREAT DAY AND GOOD LUCK,
MCCOLLY REAL ESTATE
If we do go through with the short sale, we should continue to pay the mortgage?? From my understanding, our realtor will just lower and lower the price every few weeks until we have a buyer, at which point in time, we can say yes or no, and then we have to apply to the bank, which can take a few weeks for them to approve and accept the lower offer??
Also, stupidly, my husband and I have our primary checking account with Chase, a savings (with nothing in it), and a credit card with Chase. Our checking does have auto-deposit and every 2 weeks a large chunk is deposited there, but it goes to pay bills as well as almost $4200 in mortgages/taxes/HOA dues. If we were to stop paying the mortgage, would Chase just start auto-debiting the account for the mortgage??
Truly, other than the fact that we cannot sell for anywhere near the market value, we have two places with a LARGE bill for mortgages, and my husband took a $15000 pay decrease, we have no "real" hardships (as I have read with many people with kids, losing jobs, etc). Do you think we would even qualify for a short sale??? Thank you!!!
Also, I had heard that some 2nd mortgages are subordinating in order to refinance the first one and lower your payment. Ask the second mortgages if they have a plan to do that. As long as you are current, you could be able to do it.
Check with your county / city for a foreclosure prevention.
Call your lenders and ask if a Forbearance could be for you. If you do not want to keep neither of the properties you could try: Deed-in-Lieu
If you stop making payments and the homes do not sell you could face foreclosure.
Read more about short sale on my web-site