When the short sale program ends and the house is still unsold (foreclose, accepting)

[Rich Cabeza]

What will happen? GMAC told me they'll do a deed in lieu if the house doesn't sell by mid Novemeber. Do I get a letter saying show up at a certain place and hand the keys over on this date? How does the process work and about how long will it take?

[Modification Specialist]

Originally Posted by Rich Cabeza

What will happen? GMAC told me they'll do a deed in lieu if the house doesn't sell by mid Novemeber. Do I get a letter saying show up at a certain place and hand the keys over on this date? How does the process work and about how long will it take?

It is different in every state as to the amount of time it takes to foreclose on a home. Noting your in New Mexico, your state is a judical state where the bank has to go through the courts in order to foreclose.

By you working with them to do a deed in lieu, you are making it cheaper and easier for them to get you out of the property. You have probably sent them all your income information. You left it to them to determine there is no affordability to save your home.

Even if your bank accepts a deed in lieu, they go after a deficiency judgment against the borrower. They are allowed in your state. Although if they realize they will not profit from a deficiency judgment, You are going to receive a 1099c for the difference what was owed on your loan, the what the loan is settled at.

You accepting a deed in lieu - you have to be really careful in the future, there is no further recourse against you. Banks are really skillful in how they word they are their documents. People across the country are being burned by their lenders...

Good Luck..

[bbronston]

Rich, I obviously don't know the details of this program you mentioned but did the bank tell you a specific selling price at which they would agree to a short sale? If not, or maybe even if they did, why don't you lower the price each week right up until your deadline? If you get a contract, you can demonstrate that the property wouldn't sell at a higher price. If it doesn't draw a contract you are no worse off than before.

[Rich Cabeza]

Originally Posted by bbronston

Rich, I obviously don't know the details of this program you mentioned but did the bank tell you a specific selling price at which they would agree to a short sale? If not, or maybe even if they did, why don't you lower the price each week right up until your deadline? If you get a contract, you can demonstrate that the property wouldn't sell at a higher price. If it doesn't draw a contract you are no worse off than before.

Yes the bank told me the min price I could sell the house. GMAC also told me I would not owe anything, they won't come after me, etc., etc. I just want to know what happens when the short sale's over and the deed in lieu period starts.