And yes, there are hundreds of thousands of people facing this dilemma, so you are not alone. To qualify for a short sale, you have to be facing one or more of these hardship reasons that a lender will accept:
_ Reduced income
_ Medical bills
_ Too much debt
_ Death of spouse
_ Mortgage payment increases
_ Business failure
_ Job relocation
_ Damage to property
_ Military service
If you haven't already done so, engage a realtor who is experienced in short sales to list your property. When I say experienced, make sure it's someone who has already successfully represented sellers in a short sale for the reason that this is a time-consuming, energy-zapping, frustration-laden listing that will take a long time to process.
Here's an article on how to do a short sale; There are other articles related to this that you will see....but start with this http://homebuying.about.com/od/4closureshortsales/a/shortsal
And get yourself a good realtor! There is hope, but keep the faith!
It has been a while since you post this and I want to offer you an option to own a home again if you haven't find one yet.
I sell houses with owner financing. I have a program that is specially designed for people who have recent foreclosure, bankruptcy, judgment, collection, liens, etc. How you had credit issues now is not the main concern, we know that things happen and especially in this economy many people are experiencing financial challenges. However, we want to make sure the payments are comfortable for you and the house match your preference.
I may or may not already have a house that could match with you, but when you are willing to work with me on this no credit check program, I will be happy to find a house for you.
I Sell Houses - Owner Financing Available for ALL Credit Types
If you do a short sale make sure you get everything in writing...followup in writing, record phone conversations if you can especially with Chase...they are ruthless ....
Starting 8-1-08 for all FHA loans;
If you forclose you will be unable to get a goverment backed loan for at leat 5 years depending on wht else happens to your credit
If you short sale you can be back in as little as 2 years.
Short sale shows the lendor that despite your hardship you at least worked out a solution.
I have not had anyone I have helped with a pre foreclosure not be able to rent yet. I don't know your details but chances are you will be able to find a place.
Best of Luck
1. Remember, the owner can rent to anyone with bad credit.
2. There is a strategy called Lease Option to Purchase. In short, you write a contract to purchase from the owner on the basis of a lease with the option to purchase say 18 or 24 months later. This gives the purchaser enough time to fix credit before obtaining a loan. Basically, you rent the home with the option to buy at the agreed terms of the contract....
3. Seller financing is another way. Remember, all these techniques are conditioned that the owner of the property agrees to enter a contract.
In short, you can have bad credit, and still secure property....
It is hard to really answer your question without having the hard facts such as:
1) Location of the property
2) Condition of the property
3) What other properties in the neighbourhood are selling for and how long they take to sell.
If I were in your shoes, I would take a deep breath, and write down all the facts as follows:
1) What do you owe?
2) What is your income?
3) Can you leverage your income to change the way the mortgage is structured?
4) NOW have a Realtor give you an idea/report from the MLS as to the options and risk associated with putting your home on the market
5) Look at selling with alternatives like owner financing, rent to own and so on.
6) Now take 1-5 and systematically look at each option.
7) Avoid at all costs foreclosure.
Email me if you have any further questions / need some more solutions.
...and remember....do NOT allow national news, nor the gloom and doom of the national market sway YOUR needs, desires and wants....news broadcasters do not make advertising revenues by producing positive news headlines...it is the scare and dare tactic to get people to watch that electronic box.