Need Advice On Selling Short
Starting this month we are no longer able to pay our mortgage. I knew this was coming and filled out a loss mitigation pkg for our 1st mortgage company, and spoke via phone with the 2nd mortgage company. But they haven't been willing to deal with us yet because we
are still current. We will not be able to make this month's payments.. and we desparately want to get out of this house before our credit is wrecked.
We've been approached by an investor who has offered to negotiate a short sale with the two lenders. It seems like a good solution (if we don't sell we'll definitely be filing bankrupty.. and two BK attorneys told us we'd have to do a Ch. 7
So.. here are my questions
Investor wants me to sign a blank sale agreement - with no money amounts listed. I am wary of signing anything blank. Is this standard operating procedure.
He also asked me to sign a blank authorization to release information form and said he'd fill in the lender information. Surely it would be better to have than info in writing on the form before I sign it.
I woud also appreciate any information on how to best protect my own interests in such a sale. Any pitfalls I should avoid? I only want to do this if the investor is legit. Any way I can find out?
Thanks in advance!
PS we've had the house on the market 18 months and lowered the price 4 times - asking price is now less than what we owe (so basically a short sale is our only way out - or we end up pulling a hardship withddrawal from the 401K - and paying all those nasty taxes.
You'll need to sign the "blank" purchase agreement. But it doensn't have to be blank.
Make sure that it states clearly that the purchase is "Pending Bank approval of a short sale"
You shouldn't have to sign it until he/she is about ready to send in the package.
The other thing is you can do the short sale yourself.
Just contact the bank and ask for the loss mitigation dept. Give them your story.
They'll help.
Sam