Vicki Watzlawick

Those other 2 answers are great, but where would you the downpayment from? Most likely with a short sale on your record you will need 20% down and that is WITH a good credit score. I always recommend that my short sales clients find a rent with option. There are tons of them out there right now. Enter into a 2 year lease and negotiate the purchase price right in the lease. What a perfect time to negotiate the price! Your credit should look pretty good if you keep everything paid and then you can close on the purchase with a decent interest rate.

And you are right. Do the math. If the market isn't coming back for 3.5 to 5 years how much money, at your current payment amount, are you going to be paying to keep the house and to only breakeven and have it at the price you paid for it in 5 years? When you can find a rental in the same neighborhood for 1/2 the amount? Thats pretty simple math in my mind.

Both lenders will be satisfied with a successful short sale.

Vicki Watzlawick
Broker Owner
Exit Platinum Realty
Offices in Chicago and lake In The Hills
847-854-3800

Co-Author "Should I Short Sale My Home?" - Wed Aug 5 2009, 22:40