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I've been unemployed now for 9 months, and have gone through my savings, hoping things would get better.
I was thinking of trying to short sell it, to try to salvage a little credit, and not just be a bum.
I just read the other post that Bank of America wants people to foreclose so they make more money, I have private mortgage insurance, and live in AZ, bought in 2005, and never refied or borrowed against the house.
I talked to one place that says they will short sell it for me, and the bank pays them, I don't pay anything (I assume the buyer's bank would pay him)
He claims you need a pro to do a short sale.
Says once you get a offer, and the bank accepts, it can be 30-90 days until it closes, he said my credit would go down 50-150 points, but would look better on my report than a foreclosure.
I've been unemployed now for 9 months, and have gone through my savings, hoping things would get better.
I was thinking of trying to short sell it, to try to salvage a little credit, and not just be a bum.
I just read the other post that Bank of America wants people to foreclose so they make more money, I have private mortgage insurance, and live in AZ, bought in 2005, and never refied or borrowed against the house.
I talked to one place that says they will short sell it for me, and the bank pays them, I don't pay anything (I assume the buyer's bank would pay him)
He claims you need a pro to do a short sale.
Says once you get a offer, and the bank accepts, it can be 30-90 days until it closes, he said my credit would go down 50-150 points, but would look better on my report than a foreclosure.
What should I do?
Thanks, Mike
Does this "pro" accept cash after the short sale approval or does he want money up front? Stay away from the "pros" who want money upfront. You need to conserve cash at this point.
Yes, if you are unemployed, you stand a better chance at getting a short sale (once you start missing your payments) than a loan modification.
Get listed with a real estate agent. And the banks will usually require an offer on the home.
There are very specific requirements to qualify for HAFA, though. Definitely do the research.
I believe that you have to have been refused (in writing) for a refi, or else give the bank written notice that you don't want to refi.
Also, many of the banks (including the big banks, like Chase and Bank of America) are telling people when they call up that they aren't doing HAFA, or else they have rules that are different than the rules they are supposed to be following. So it is a very complicated process.
The one thing that you didn't mention that the agent told you is that yes, it takes a couple months to close after the bank approves it, but getting that bank approval can take anywhere from 60 days to 9 months. So the entire process can take as long as a year AFTER you get an offer.
As for needing a pro: You not only really need an agent to get through the process, you specifically need an agent who knows how short sales work. And even more specifically, you need an agent who knows how a Bank of America short sale works, including their new equator.com website.
I don't think it's that they prefer people to walk.
But it's more of who wants to blink first.
The troubled homeowner or the bank.
What the banks don't realize is just how many people are living paycheck to paycheck with no savings. These are the people who absolutely have no assets. These are the people who are giving the banks the middle finger and walking if they don't get a loan modification/short sale. These people have nothing to lose. This makes up the majority of the short sellers out there.
However, I estimate there are 10-20% of potential short sellers who do have assets outside of retirement account who want the free get out of jail card too. It's these people the banks are playing games with. They will bet these sellers will try to do everything to savage their credit.
I don't think it's that they prefer people to walk.
But it's more of who wants to blink first.
The troubled homeowner or the bank.
What the banks don't realize is just how many people are living paycheck to paycheck with no savings. These are the people who absolutely have no assets. These are the people who are giving the banks the middle finger and walking if they don't get a loan modification/short sale. These people have nothing to lose. This makes up the majority of the short sellers out there.
However, I estimate there are 10-20% of potential short sellers who do have assets outside of retirement account who want the free get out of jail card too. It's these people the banks are playing games with. They will bet these sellers will try to do everything to savage their credit.
I don't think that your estimate is correct in the number of short sellers who just want a get out of jail card..... You really should read what is going on in the mortgages thread.
It irritates me to no end when I hear or see people saying that is what people want.
Yes,granted,there ARE people who do want a free ride, but there are people who have tried to do everything they can to maintain their credit and their morals by paying for their mortgage on their home.
I am not ,not going into our situation again,but you can read about it elsewhere.
We don't want a get out of jail card, we want BOA to allow us to sell our home at a loss and they won't do it. We have a viable buyer, and BOA keeps coming back with a different counter and they are going to FORCE us to lose our buyer and force us to foreclose.
Sorry, but people really need to stop assuming that everyone wants a free ride. If that were the case,we would have stopped paying our mortage a long time ago, because the only ones getting a free ride at this point are the ones who decided they could live in a $400K house on their $50K income and then when their ARM adjusted and they realized what was happening, they just stripped their home and walked away.....
Those are the ones getting a free ride.
There are very specific requirements to qualify for HAFA, though. Definitely do the research....it is a very complicated process.
Quote:
Originally Posted by aneftp
Get listed with a real estate agent...
If you are going to do this on your own, get listed with a real estate agent first. Then contact your bank to discuss a deed in lieu. If the property doesn't sell after three months through a short sale, it can continue into foreclosure. With a deed in lieu, if it doesn't sell, with a deed in lieu you can walk away free and clear.
I can not tell you how many people I have spoken to saying "we are working with our bank", We are working with HAFA", "We are working with...". The truth is, people are getting what they paid - nothing, if not turned down.
You have been unemployed for 9 months, do something about it!
My advise to you is to re-invent yourself. Look another job. Last Oct I spoke to a man in Ohio who got laid off for his accounting job. He discussed opening up a cleaning business, we talked on the weekends about putting fliers on windshields at the home depot parking lots. In January I spoke with him, I was so busy he was hiring people.
Does your unemployment office offer any free training. Last year I took advantage of a $5800 CISCO course, paid for by the state. It looks really good on my resume. On the weekends I now fix computers part time.
Spoke to another person in Florida - he had a different type of cleaning business he started. He contacts real estate agents and he maintains foreclosed homes.
Look around what are people spending their money on? Stat working in that type of business. If not create your own business.
In this economy we have to be more creative!!!!
Good Luck.....
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