Need Advice On Short Selling My Own Home
I've been asking a lot of questions but please bear with me - I'm completely new to this whole concept.
Facing BK or foreclosure if we don't sell soon. Have been listed with an agent 18 months with lower and lower pricing. Now offering the house at less than what we owe.
If/when I get an offer - can I approach the lender about accepting a short sale? Do I approach the 1st mortgage holder, the 2nd mortgage holder or both? What is the best strategy for approaching the lender(s)?
Heres the scoop - we owe 409k on 1st, 98 on 2nd. Asking 489k - and figuring we'll get offered even less. Once commissions and closing costs are factored in we don't have the liquidatable assets to cover the difference. This month is our first missed payments on both mortgages but we are completely out of cash. Bankruptcy lawyers (2 of 'em) have advised we stop paying mortgages and use our available cash for the purchases we've been putting on credit cards (groceries, gas, etc ). Expecting to file chapter 7 by end of December.
Do I approach mortgage lenders BEFORE we get an offer and explain what's up - or do I wait until I (hopefully) have an offer in hand?
Any and all advice greatly appreciated!!!
you'll need to be on the same page with your real estate broker (presumably you've used a real estate broker to list and market your home) and offer the house for sale subject to mortgagee's short sale approval... there is some special, restrictive language that an experienced, short sale broker will know...
You should immediately contact your lenders and explain the situation, ask for an application for short sale consideration as an alternative to foreclosure. The first probably won't consider a short... but the second might. Best not to surprise them with this... best to lay the prerequisite foundation.
If your broker needs a quick tutorial in the administration of preforeclosure short sale listings....
have him join the TCI family and PM me.
You might also try calling the "we buy houses" ads in your paper and explain your situation. You might find someone to buy your house!