Need help ASAP have short sale question (loan, personal property, approved)

[Drew303]

I have a offer in to both my 1st and 2nd mortgage companies for a short sale. I spoke with the 1st the other day and the offer is under review. The 2nd mortgage company (citi mortgage) who has been harrassing me non stop for the past 6th months called me just now and said that If I dont make a payment TODAY, that my account will be a "write off" and they wont be able to do a short sale because my file will be "with their lawyers." I have been told from different sources that they are just trying to bully me. What are your thoughts? I have money but I need it for my deposit for my apartment.

[Modification Specialist]

Originally Posted by Drew303

I have a offer in to both my 1st and 2nd mortgage companies for a short sale. I spoke with the 1st the other day and the offer is under review. The 2nd mortgage company (citi mortgage) who has been harassing me non stop for the past 6th months called me just now and said that If I dont make a payment TODAY, that my account will be a "write off" and they wont be able to do a short sale because my file will be "with their lawyers." I have been told from different sources that they are just trying to bully me. What are your thoughts? I have money but I need it for my deposit for my apartment.

Let me told in - the reason your second mortgage is crying, because they are behind the first mortgage in lien holders position. Mention to them (not doing so), you have been speaking to an attorney about filing chapter 7 bankruptcy. That will really get them shouting at you.....

Seriously - the correct way to walk away from a property with minimal damage to your credit score is through a Deed in Lieu. By doing just a short sale - if the house doesn't sell, it can continue into foreclosure, and a foreclosure can be listed on a credit report for up to ten years.

With only doing a Short Sale (worst case) - the lender has two options (either one or the other) hitting you with a deficiency judgment. Which is the difference from what was owed, and what the property sold for. I have spoken to individuals that have had their new house stripped, and cars taken (personal property) to satisfy their judgment. The other option your lender has is sending you a 1099-C, which was the difference from what you owed to what it sold for. Then you have the IRS casing you for taxes owed.

Again the best option is through a deed in lieu handled by an attorney.

What I am seeing on loan modifications having second mortgages, lenders have been greatly reducing the principles making the new payments very small. I guess since you have one foot out the door, you don't want to save your home.

Good Luck....

[Mar19]

I have been involved in a short sale for about 3 months now. The bank did the BPO twice and has "unofficially" accepted our offer as per the sellers agent. They have asked for a prelim HUD which my lawyer has emailed to them today. My concern is that there is no "official" acceptance even though the sellers realtor, who has been very realiable and the driving force behind this whole deal, has given me this unofficial info. What should I be thinking now?? Am I close to getting this officially approved?? Why would the sellers agent tell me this unless there was some truth to it? Help!!!

[SmartMoney]

Find out if your first trust lender is participating in HAFA, Home Affordable Foreclosure Alternatives. If so, there are incentives for the second lien holder (not a whole lot, but more than a foreclosure). If so, then you could receive indemnification from both lenders if a short sale is done under this program (plus, you could receive some relocation seed money - $1500). I've had two short sales (and subsequent purchases) with this program. (FHA has very limiting circumstances where the short sale seller can purchase directly after a short sale).

HAFA LINK: Making Home Affordable - Home Affordable Foreclosure Alternatives (HAFA) Program