Phillip Fieweger

If I understand what you are asking, then a short sale won't give you more time before your lender(s) foreclose on the property unless they agree to give you more time before they foreclose. A short sale does not stop the foreclosure process. If your lender(s) agrees to putting the foreclosure on hold while you try to sell it, get it in writing from them. That way there is no confusion between you and them as to what timelines you are on before they do the foreclosure process again.

In response to the options that the lender(s) gave you, there are at least two other alternatives that you may discuss with your lender(s). The first is called "Deed in Lieu of Foreclosure." Basically what this means is that you sign the deed to your house over to the lender and they don't foreclose on you. The second alternative is called a "Deed for Lease" program that was started by Fannie Mae recently. The basics for this program are that you sign the deed over to your lender and lease it back at current market rates.

As for pricing the home, no matter what you decide to sell it for, if it doesn't cover what you owe on it (i.e. you are doing a short sale), then your lender(s) have to approve of the sale before you are in a binding contract with a buyer. In the meantime, however, they can still foreclose on the property if they haven't agreed to give you more time to sell it. - Thu Nov 12 2009, 12:39