Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
More than a year ago we applied for a loan modification and we were "put" on a "probation period" for 07 months- at that point our mortgage was reduced $500 -. When that period ended, we found out we were not considered for a loan modification but we were put on a moratorium period- meaning - we had a ballon to pay at the end. And, we were denied a loan modification because I was unemployed- We were never told this - if not we were never tried it.. We put the house on the market on, on Jan 2010, and got an offer within 30 days (short sale). Unfortunately, the buyer, back off her offer the same day the counter offer from the bank was received
The Short Sale certificate is valid 'till Sept 2010, and, the bank does not want less than $200k in the house.
The current balance is $207K, plus all the fees, unpaid balances and penalties for a year $20K-
In the meantime, my husband got a transfer to another state, and we moved. The showings have decresed a lot - we have not received any offers and we are running out of time-. At this moment, we don't care about our credit anymore. It is messed up already, but we need to have closure!
We are 3K miles away from our house. We left it in perfect condition. painted , cleaned, shows like a model home- But now we can't check it, we can't pay it and we are worried about waiting 'till who knows when for a sale or a foreclosure. We are thinking about turning the property to the bank.
If this better than a foreclosure?
Can it be done now - with a short sale certificate appoved?
Can we wait 'till the end of the certificate to do it?
Can we avoid foreclosure?
Were should I call for info the bank?! I don't trust them.. they were the ones who lied to us for a year, and every time you call you get conflicting info..
What is the right choice for you depends on your state and deficiency judgments. Deed-in-lieus can be a good thing if you are exposed to a deficiency judgment because you can have an attorney make sure you have full settlement language. That is kind of the point of a short sale too.
Honestly, you need to chat with an attorney and/or a CPA who knows your state laws regarding foreclosures. There are some national tax implications, but each state is just a bit different in these rules.
OP, for numerous reasons a short sale or Deed in Lieu is always better than a foreclosure. Continue to try to get the short sale done and consult the bank or an attorney on d-i-l procedures. You said the market is changing, so perhaps the offer the bank will now accept has also changed. There is no harm in reducing the price and taking a lower offer to the bank in hopes they'll take it. Worst they'll do is tell you no and you're situation will still be the same as it is now. Best is they take it so at least you have a chance.
Why is a foreclosure the worst possible solution?
-public filing so it public info and shows up on background reports, could afftect ability to get housing and jobs in the future
-shows up on credit reports
-damages credit much more than a short sale
-affects ability to get loans (house, car, personal, etc) and when you do will have much worse interest rates
-higher insurance rates
-could affect children's ability to get college loans
OP, for numerous reasons a short sale or Deed in Lieu is always better than a foreclosure. Continue to try to get the short sale done and consult the bank or an attorney on d-i-l procedures. You said the market is changing, so perhaps the offer the bank will now accept has also changed. There is no harm in reducing the price and taking a lower offer to the bank in hopes they'll take it. Worst they'll do is tell you no and you're situation will still be the same as it is now. Best is they take it so at least you have a chance.
Deed-in-lieu is vs. foreclosure is similar to turning over the keys to your car versus the bank sending a truck to come and get your car. They effect on your credit is the same, the difference is you negotiate how the turnover occurs. If you're going to do a deed-in-lieu, before you sign anything, make sure the bank can't come after you later with a deficiency judgment. I wouldn't totally give up on the idea of selling short since the amount you owe isn't far off from what the bank will accept. I'd suggest getting a more aggressive agent with short sale experience...and it may help to do a pre-settlement occupancy agreement with the buyer whenever you get one....that is, if it's something that's allowed in your state.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
And, we were denied a loan modification because I was unemployed- We were never told this - if not we were never tried it.. 
We put the house on the market on, on Jan 2010, and got an offer within 30 days (short sale). Unfortunately, the buyer, back off her offer the same day the counter offer from the bank was received 
