Caroline York

According to realtyTrac 649,917 homeowners lost their homes to default, foreclosure or some other negative financial situation the first quarter of 2008. It went up the second quarter by approximately 23%. These are facts. In our time of economic crises it is unlikely that millions of people will be banned from owning real estate in the future. Yes, your credit may be hit by a short sale but by working with your lenders and other creditors the future does not mean you will never be able to own property again. - Fri Nov 7 2008, 03:41

It doesn't sound like your realtor is providing you with all of the information you need. Short Sales have strict guidelines and can take up to 6 months or longer to be approved by your bank. You first need to supply the bank with a hardship letter explaining why you need to sell and begin the short sale transaction, It is recommended that you "hand write" the letter. You should make a person to person connection with your bank prior to going into the process. The Short Sales are generally handled by the remediation departments or bad debts departments of the banks. Once you have an agreement with your bank on a short sale and you abide by the terms of your agreement then your credit will not suffer any more than it already has getting you to this point. As you know, Selling short means that you owe the bank more than your house will bring at market price. The bank must agree to accept less than you owe and/or the bank may ask you to sign a promissory note to repay the difference between what the house sells for and what the bank is owed. So even if you sell short doesn't mean that you will eliminate the debt on your house. Remember, The things that hurt your credit are debts that you do not pay back or pay back slower than the original terms of your contract. It generally takes only 6 months to get your credit back on track. - Thu Nov 6 2008, 19:38

You need a financial advisor not a realtor or mortgage broker. Please. Be wise at this time and speak to someone who can protect your interests for the long term. Sometimes it is the tax deductions that will make your money grow so there are actually some "good debts" out there. The best thing to do is interview at least three financial advisors. You may have to pay the one you choose a fee but it may be far less than what you will lose without the proper advice. The last people you should be asking are the people who are going to benefit from your investments. Now, go find an advisor - then find a realtor and a mortgage broker... Congratulations and good luck!! - Thu Nov 6 2008, 19:18

Julia, If you are not familiar with some of the terms that Carmen just said then you need a Realtor® to assist you. Many people do not know what an REO is, where to get comparables to determine if the house is under or over valued etc. Work with a Realtor®. In most foreclosures they are compensated by the seller and you reap the benefits. - Thu Oct 23 2008, 06:58

If you must ask this question then I respectfully recommend you contact a Realtor® in your area that specializes in foreclosures. A specialist has already established a relationship with most banks and although they can't get you special deals they know who to speak to and what rate of return the different banks expect from their foreclosed properties. Once you make the offer and get a contract on the property a realtor will assure that you get it to the settlement table. Many of these contracts fall apart if not handled properly. Also, since you are buying this as a second home it will most likely be considered an investment property and you will be paying a higher interest rate and a realtor can make sure you connect with a lender that is knowledgeable in both foreclosure transactions and investment properties . Much success! Please let us know how you made out. - Thu Oct 23 2008, 06:36

First have it appraised so you know that you are pricing it according to the market and so a mortgage will be approved to the right buyer by a lender. Make sure your Realtor® has a good marketing plan that includes the internet reaching out to sites directed to investors and who has personal connections to some investors. In Prudential Tropical Realty we have a young woman that works with investors looking for investment properties and I am sure other brokers have specialists as well. If you do a little research in selecting your Realtor® you will shorten the time your property remains on the market. Much success. - Thu Oct 23 2008, 06:49

Christine, please keep us informed of how you are progressing. There may be other suggestions depending on how much assistance you have received since you first wrote on October 9th. - Wed Oct 15 2008, 05:19

Since you want to proceed with a Deed in Lieu then I recommend you spend the $1000 on a real estate attorney that will negotiate this action with your lender. Please read the following information provided by Wikipedia that clearly explains the process.

"In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair market value of the property.

Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations." - Thu Oct 9 2008, 18:01

I agree with one thing that was said - DO NOT pay anyone to help you Walk away. You can walk away with out anyone's help. I am amazed at some of the other answers you are getting. It sounds like you have done all you can do within the system and at this point it is fruitless to worry about your credit rating. I think you arIt sounds like you are worrying about keeping the roof over your head and staying in the house that you love. Governor Crist just signed legislation to help homeowners in difficulty. Contact the Governor's office and ask if they can direct you to the right department to keep you from losing your home. I use to work for a Governor in another state and every governor's office has a constituent liaison or staff that help taxpayers get to the right department. The important thing is that you get the kind of help you need NOW. Banks and lenders seem to have let you down and although a real estate agent may be able to help you with a short sale none of us can keep you in your home. Have you been served papers yet? Is there a Lis Pendens? If you need information about the recent Florida legislation go to my website in the Services area and check out Florida Homeowners Updates. Prayers to you and your family in this tough time. - Thu Oct 9 2008, 15:16