http://www.trulia.com/voices/Home_Selling/How_do_Short_sales_work_-69636I am going through a divorce and need to sell my house. I have not missed any payments yet, but will not beable to keep making them in January. Is short sale the best way to get of this mortgage, as we are upside down and will not make a profit if we can sell it outright. Am I required to keep making payments during the short sale?en-ushttp://www.trulia.com/voices/profile/Real_Estate_Pro-Frisco_DFW_Metroplex-672971/http://www.trulia.com/voices/profile/Real_Estate_Pro-Frisco_DFW_Metroplex-672971/I will be happy to answer all your questions if you call or email me. My number is (972) 757-4527 Barbara@Powerteamtexas.com If you make payments during a Shortsale, the bank will not be anxious to work with you! If you definately are looking to Sell this home? You need to get it on the Market. You have to show the bank, that you did try to Sell it at the higher price, so that you could pay them back. A Shortsale, is asking them to take a loss, because your home is not worth more.Fri, 17 Jul 2009 07:08:04 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Dallas_TX-646561/http://www.trulia.com/voices/profile/Real_Estate_Pro-Dallas_TX-646561/Anja Short Sales are a new wave of norm now in this industry. The option has always been around, its just so popular now that everyone unfortunately has to consider this remedy. You can go to our website, www.whitehawkrealty.com and read the tab about short sales. We got permission and statements directly from the lenders to post so you can receive accurate information. We were doing these types of transaction before they became popular. You obviously have a hardship which is your divorce but you need a COMPLETE package to submit to the lender which includes an offer on your property. You need to contact your lender to make the notation on your loan file. You should then hire an agent who is well equipped with KNOWLEDGE and SKILLS necessary to close a short sale transactions. Otherwise you willl have an agent with their sign in your yard, and eventually a foreclosure. There are lots and lots of agents that tell you they know how to do a short sale and really don't, they waste precious times and what you get is again a sign in your yard and a foreclosure. Be careful and selective. Ask the agent how many SHORT SALE transactions have they closed on either side, buyer or seller. If its 3 or less than 2, then RUN! Also ask them how long it took for them to get the transaction completed and what process do they use in order to get things done.Mon, 02 Feb 2009 15:39:24 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Dallas_TX-646561/http://www.trulia.com/voices/profile/Real_Estate_Pro-Dallas_TX-646561/Anja Short Sales are a new wave of norm now in this industry. The option has always been around, its just so popular now that everyone unfortunately has to consider this remedy. You can go to our website, www.whitehawkrealty.com and read the tab about short sales. We got permission and statements directly from the lenders to post so you can receive accurate information. We were doing these types of transaction before they became popular. You obviously have a hardship which is your divorce but you need a COMPLETE package to submit to the lender which includes an offer on your property. You need to contact your lender to make the notation on your loan file. You should then hire an agent who is well equipped with KNOWLEDGE and SKILLS necessary to close a short sale transactions. Otherwise you willl have an agent with their sign in your yard, and eventually a foreclosure. There are lots and lots of agents that tell you they know how to do a short sale and really don't, they waste precious times and what you get is again a sign in your yard and a foreclosure. Be careful and selective. Ask the agent how many SHORT SALE transactions have they closed on either side, buyer or seller. If its 3 or less than 2, then RUN! Also ask them how long it took for them to get the transaction completed and what process do they use in order to get things done.Mon, 02 Feb 2009 15:31:56 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Tampa_FL-238814/http://www.trulia.com/voices/profile/Real_Estate_Pro-Tampa_FL-238814/Step 1 is get a notebook. You will need to keep track of when you called the lender, who you spoke with and what the conversation was about. The lenders are very busy and it is doubtful you will speak with the same person twice. With your notebook ready then you will want to call your lender and discuss your options. Hopefully your lender will be willing to work with you and you won't have to stop making payments. Best of luck, TreyMon, 01 Dec 2008 09:24:42 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Dallas_TX-123371/http://www.trulia.com/voices/profile/Real_Estate_Pro-Dallas_TX-123371/Happy to assist you I have been a short sale listing / buyers agent. You need lender approval first however does not prevent us from not listing your home. The lender will require for you to complete info. it can take up to several months for their review. You must start TODAY, The short sale could show negative on your credit report however better than a foreclosure. Sorry to hear about your personal circumstance. Contact my office 972-699-9111 Lynn http://www.lynn911.com http://www.homes-for-sale-dallas.comMon, 01 Dec 2008 09:02:31 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Sebring_FL-199573/http://www.trulia.com/voices/profile/Real_Estate_Pro-Sebring_FL-199573/First step: Contact your lender and ask to restructure your loan. You have a hardship (divorce). You might just be able to stay in your home with new loan terms. Second step: If your lender will not restructure your loan, ask for a forbearance. This means the lender and you agree to you not making payments for a certain time (the terms will depend on the lender). The missed payments may be added onto the loan or be repaid otherwise. Additional fees may apply to a forbearance. Third Step: Your lender might agree to a short sale. As many have explained already, the lender will accept less than your mortgage payoff. You will have to take a hit on your credit and might also be required to repay the amount short of your payoff. There might also be tax ramifications. Most lenders I have worked with will consider 70 cents to the dollar (that's the payoff dollar, not the market value dollar), Bank of America won't seem to budge below 80 cents to the dollar. You need an experience short sale expert to navigate you through this and by experienced I mean someone that has actually successfully closed short sales. The key to all these steps is COMMUNICATION WITH YOUR LENDER. I understand you might feel embarrassed and you are going through emotionally tough times. Nonetheless, make the call and talk to your lender.Fri, 21 Nov 2008 13:33:44 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Glendale_CA-54633/http://www.trulia.com/voices/profile/Real_Estate_Pro-Glendale_CA-54633/Anja I am very sorry to hear about your situation. At times like this the stress you are under may make it difficult to make the best decision for your family. Knowledge is power, and right now you need someone that can provide you with options and their pros and cons, then you make the choice. First, what would you prefer to do - stay in the home, or move? Second, if you wanted to stay, do you have the income to pay a mortgage payment? Third, if you wanted to move, do you have the cash to pay first and last month's rent? So let's take these one by one: If you want to stay in the home, you need to try to negotiate with your lender for a loan modification. Most lenders are open to modifying your loan, but only to a point. One proposal I recently read about was a loan that would have a payment no more than 38% of your income, and 90% of the value of your home. You could find out what the current market value of your home is, and have a Realtor compute the numbers for you. If you want to move, then you'd need to show "hardship", which divorce certainly qualifies. In the "hardship letter" you explain how you were able to make payments at one time, and now, due to the divorce, are unable to make the payments and do not see that picture changing in the near future. They are going to ask for a financial statement of your income, assets, and liabilities. Note that a loan modification and short sale process are two opposite paths and probably do not mesh well. I recommend talking with a Realtor who can analyze your situation and help you work out alternatives. So far as the decline in value of your home, I would not focus on that issue. Many people have had the market value of their home affected, but the majority will just have to keep paying. If your home went UP in value, would you give the lender the extra money? Of course not, so when the value drops, same rules apply. I would be happy to refer you to an expert in short sales in your area. Just contact me via my Trulia profile. Good luck.Fri, 21 Nov 2008 11:50:46 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Tampa_FL-298754/http://www.trulia.com/voices/profile/Real_Estate_Pro-Tampa_FL-298754/Your first call should be to your lender to see if there is anything they can do to help you stay in the home and continue making mortgage payments. Several large lenders are coming to the realization that it is in their best interest to work with their customers on revamping the loan. Chase, for example, just announced that they are placing a moratorium on foreclosures for 90 days so they can work with their customers to help them avoid foreclosure. If your lender is uncooperative or doesn't seem to want to offer any assistance, you should call a local Realtor who is familiar with doing short sales.Fri, 21 Nov 2008 10:24:11 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Poulsbo_WA-160846/http://www.trulia.com/voices/profile/Real_Estate_Pro-Poulsbo_WA-160846/A short sale is a sale in which the proceeds from the sale will not be sufficient to pay the amount owed, and the seller in unable or unwilling to make up the difference. It does not change the seller's obligation to continue to make payments. The property is sold through a conventional sales process (I'm assuming you are planning to list it through a real estate agent) with one important variation - the bank has to approve the sale amount. Different lenders have different policies on what they will accept relative to the shortfall - some forgive it, others want to make arrangements for you to pay it back over time. And lenders also vary on their level of co-operation - it can often be hard to find the right person at the lender to talk to. But it is best to start the conversation with the lender before you have a buyer. Look for a real estate agent that understands the process, because it can be tricky getting to the right people and negotiating concessions from the bank. Good luck in your difficult period. Wayne PaulsonFri, 21 Nov 2008 10:20:49 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Palm_Desert_CA-180396/http://www.trulia.com/voices/profile/Real_Estate_Pro-Palm_Desert_CA-180396/A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. Not all sellers or all properties qualify for short sales.Fri, 21 Nov 2008 10:17:52 -0800http://www.trulia.com/voices/profile/Real_Estate_Pro-Texas-61252/http://www.trulia.com/voices/profile/Real_Estate_Pro-Texas-61252/You need to check with your lender first. Tell them you need a short sale package. You need to try to get the most for you home that you can. The best thing we can do is market the home, try to get offers, and submit the offers to the bank that are acceptable to you and see if they will sign off on them. They'll want to see your tax returns and financial statments to see if they will accept a short sale. If you have assets they may want them....like 401k, savings, etc. If you don't have any then they may take what they can get.Fri, 21 Nov 2008 10:17:32 -0800