Jeanne Heroux

Thanks for your response! There's a lot of interesting articles on that website. - Tue Apr 22 2008, 19:10

Hey Chris, I have in a letter (I don't know how to put a pdf. attachment on this format) from an attorney (not my foreclosure friend, but another attorney on Cape Cod) all about short sales, wherein he also staes that credit bureaus have not been amking any distinction between foreclosures, pre-foreclosures/short sales, or delinquencies. They are all getting compartmentalized into one catagory....bad credit. For the next ten years. I have found a lender to give me a loan off another property I own to make up the deficiency---now for an offer!!!

But I have gotten so many interesting and informative comments here in this thread. I hope it has been a learning experience for us all. This whole short sale & foreclosure phenomenon will continue to be with us for some time. I would be interested to see what else we find out along the way. I will be happy to report anything new I find. Thank you for reporting in your FICO find, Chris.

While there are many "get rich with short sale" ideas out there, and perhaps some folks are nailing it, there is no great panacea for the besieged seller, I'm afraid. - Fri Apr 18 2008, 17:38

Speaking of lawyers, the attorney friend I was talking about has his regular real estate site, but he also has his foreclosure defense site -- pertinent to those of us in Massachusetts, but probably some of this applies to anyone. Here it is in case anyone's interested. - Tue Apr 8 2008, 18:19

TMan -- Thanks for clarifying. At the moment, nothing has even happened yet, but it is good to get all this info now, ahead of time, to be as prepared as possible. - Mon Apr 7 2008, 20:14

Thanks Jennifer. I imagine you are hearing a lot about short sales in your area, or at least, in CA. I was just talking to a friend who is a realtor and an attorney, and he says there are so many differing opinions (and actual truths) about the short sale right now. Different people have different experiences. He is going to look at any approval letter I may happen to get, though, which is great. He has worked with our attorney general (Martha Coakley's) office here in MA. on a couple of foreclosure cases. I'm glad you all reminded me of the attorney aspect---I'd forgotten about this guy---he's great, and understands all this. So anyway, no wonder the confusion on this topic. It is really confusing. Whatever I end up doing, I ought to keep you all up-to-date, so you can know what happened, at least, in THIS case :-) - Sun Apr 6 2008, 16:13

Great answer, Tman! But tell me this---You'd rather spend $900 on an attorney to tell you---what? I don't have a choice about the short sale, I have to do it. But is there something else I need to know? I want to be sure I'm covering everything. You mean, once I have a short sale letter from the lender, to be sure the appropriate attorney goes over it carefully? Just need clarification here. Thanks!!! - Sun Apr 6 2008, 07:30

Hi Home-buyer, I am not even looking to get out "free & clear," because I realize I got myself into this mess, but I would like to at least be able to preserve some shred of my credit, which was always around 750 while not lose absolutely everything, and also not have to pay back a large sum of money for the rest of my days. Hopefully we can work out something that everyone can live with! I am single with two kids in college (one recently left the university to transfer back home to our community college to save us money) so I hope not to pay a big prommissory note every month. I'd agree to an affordable one, tho! Otherwise, I'll be right back in the same shape as before----unable to afford payments :-) - Sun Apr 6 2008, 06:17

Good grief, Chris. This is one of those get-rich-quick on foreclosure/short sale programs (foreclosure millionaires). Do these things really work? Sounds like short sales & pre-foreclosures are slow and a lot of work! Can you really turn over a fast buck with them? (And if so, I want to do it. Maybe off-set my pending horrific debt!!! LOL.) Anyway, the point being, I don't know how much of this to believe here... - Sun Apr 6 2008, 04:00

Ute, Thanks for this great article (web reference below) This is full of excellent (albeit depressing) information. Perhaps I'd better get a car now, since I won't be buying one for many years! - Sat Apr 5 2008, 20:26

Thank you. This is very helpful. Mine is a complicated case and there is a lot to the situation. Three attorneys told me three different things. I guess in the end it will be settled in some way or other, but I do like your idea of having an attorney look at the short sale approval letter. Originally. when I spoke with the lender about this, I asked if they would go after me for a deficiency judgment, and they said no. I asked if they would put this in writing and they said no. I haven't done anything but lower the price to below what I owe the lender for now, as the lender said they would agree to a short sale since the BPO came in at $100k below what I owe them. - Sat Apr 5 2008, 18:48

You know what though? I just was talking to our broker and the office has handled three short sales within this last month. He said they heard back within a three days! But, this is Cape Cod. I suppose it varies from place to place. - Sat Apr 5 2008, 10:45

That's interesting that they preferred to let it go to foreclosure, rather than the less expensive short sale. Altho the foreclosure expenses are on the seller, not the lender! And the seller's credit is screwed anyway, whether a short sale OR a foreclosure. Good info! - Sat Apr 5 2008, 05:30

Does anyone know if there was a BPO done and if so, what was it? There's your bottom line. - Fri Apr 4 2008, 13:02

I recently spoke with a lender who said they are issuing 1099s. Here is a form 982 and instructions, which gives some good info. http://www.irs.gov/pub/irs-pdf/f982.pdf - Fri Apr 4 2008, 12:59

Hi Bill,
What a great story!!! I think besides seeing an opportunity to make money, I see these times with potential, with the current market, to get people into homes that would never have had a chance. Not into sub-prime lending, either, but solid, lower-priced homes with affordable mortgages. I loved owning my own first home as a young person in my 20's, when home prices were closer to annual incomes. It would be fun to get as many people as possible a piece of the American Dream. I do kind of sound like the girl in your story! Hopefully I fare as well! Thank you for your encouragement & great spirit! - Sun Mar 23 2008, 04:47

Just when you thought you'd heard of everything, the "Short Re-Fi" comes along. This is why I love this site. Where else would we hear all kinds of weird stuff like this? So, OK, keep us all in suspense!!!
Tell me how to do it! (Or, if I should! LOL) - Sun Jan 6 2008, 17:05

Hi Tatiana,
I did tell the lender I was contemplating not making any more payments, to hopefully gain his attention, but he was nonplussed. The only way they will consider a loan modification or refinance is if I AM in default! Sweet. But I am liking your idea about talking to bankers. (Well, not exactly that part of the idea...I do not like talking to bankers) I did speak with several, already, though, who would not touch this loan, but I think I shall not give up. Thanks for the reinforcement!
In the meantime, I have showings!!!
Jeannie - Sun Jan 6 2008, 10:17

Hi Naima,
I did list it as a rental, and did post the option to buy. Seemed like a good idea. Thank you. - Fri Nov 30 2007, 05:26

Perry, you're a genius. What a great idea. Semantics are everything. I'll try it! Thank you.
Then I think I'll check out the foreclosures on that website mentioned earlier.
Just to remind myself of where I don't ever want to be. - Thu Nov 29 2007, 19:28

I thought of leasing it out, but it does need some work. Even at that, I don't know who can afford $3500/month for a rental (not counting utilities). I even thought of a summer rental, but it is nowhere near the beach. Still, it is a great "nature" location and all, so that has possibilities. - Thu Nov 29 2007, 19:05