Please clarify for me.. are you talking about a short sale... or one of these guys that presented you with a "give me power of attorney" and you have no more worries... "Investment guys" They call that a quick sale.
There are some people out there that have taken a course on how to finagle people that are in trouble into signing over power of attorney to them and they â€œsayâ€ they will buy the house and take care of your mortgage.
I have run into a few.. Unlicensed individuals that actually have gotten some people in adult communities to sign over the right to sell the house.. These guys then list the house cheapâ€¦ get an offer and try to get the bank to take even less.. pocketing the difference. These people tell you they are investors and you donâ€™t have to worry about your mortgage any longer.. in the mean time.. they try to sell the house before foreclosure.. if they do not sell the home they walk away.. And you get stuck with the problem.
Short Sales are misinterpreted many times even with real estate agents, Knowing how to conduct a short sale is important and not for just any real estate agent. Having years of experience in real estate I have seen short sales go on for a long period of time, many times leading into a foreclosure, I often blame the agents for this because of their lack of knowledge of how conduct a short sale. Although other circumstances have occurred to cause such longevity of a process, it's generally the process that olds up the works.
The whole point for a short sale is to get you out of trouble. This will relieve you of your obligations and no you will not be responsible for any mortgage going forward. The Law enacted by Bush forgives you any obligations( http://www.irs.gov/individuals/article/0,,id=179414,00.html ) of repayment or even being 1099'ed the difference for the next tax year, which is how a short sale difference is actually handled. As was said already there are mortgage companies trying to get you to sign a note for the difference but do not sign. The main ingredient of non taxable relief is that the home be your principle residence... You still have to report the forgiveness on your tax return, but it is not taxed.
The biggest hurdle you have is getting it sold before foreclosure proceedings take place.
Make sure you have an agent familiar with short sales. Protect yourself...
Remember this... You are still the owner of the house until foreclosure. You are th one who makes the decisions until you have an offer. Any missed taken steps can cost you time and the difference is selling your home and being foreclosed. The process is critical. And No; short sales don't have to take months they can easily take 30-60 days. Taking months is when something is held up in the works, paperwork not provided, no followup, the whole process is critical. You do not have to have a pre approval. It is critical you have someone who knows what they are doing!
Just you asking about this worries me that your agent has not explained this to you and also that you may not have an attorney yet.
If you need assistance please contact, I'd be glad to help you. I work in the Camden/Gloucester County area
If the bank approves your short sale, then you're generally off the hook regarding responsibility for the mortgage. I've heard of situations where the lender asks the seller to sign a note for the difference. Avoid that if at all possible. The whole point of a short sale is that the lender is coming up "short"--that the lender loses the amount of money between: (1) what the seller owes on the mortgage, and (2) the sales price.
And a side note: short sales are seldom quick. People confuse those terms. Short sales can easily take months to accomplish. Some go on for more than a year. So don't assume it's an easy or quick way to resolve your problems.