to short sale or not to short sale?

We are filing CH7 sometime in springtime of this year. We are surrendering the house as we are about 150k upside down. We just found a really great deal on a rental so we are going to be moving in the next month. We are only about 4 months into the not paying faze so I know with the time frames around here we could easily go till end of summer before any kind of sale is done. The realtor who had the rental asked if we wanted to do a short sale. My first instinct is hell no, they aren't going to approve it anyway, 2 mortgages w/ separate lenders PLUS PMI. But then I thought my poor neighbors have to watch another house look abandoned with weeds etc.. I know the short sale benefits me in no way, but is there any harm in doing it considering we will be filing a 7, that is even if the house were to get an offer and if the lenders would even accept? I just hate leaving another house abandoned around here. Any thoughts?

In my opinion, the realtor is just looking for some (possible) extra commish if the short sale goes thru. Honestly, I'd not add the extra burden of trying to do the short sale, just walk.

Im sure you are absolutely right. He is a salesman and wants to make some money. Other than the obvious headache of dealing with all of that...is there a reason not to do a short sale? Is there any $$$ I will be responsible for? Can I be taxed on the difference if the mtg is discharged? I doubt this place will sell anyway, there are too many lenders that want their money.

http://www.bkforum.com/showthread.php?t=17098

Ask the realtor to split the commission (and specify you mean gross comm, not comm after costs) with you and see if he is still willing to do the short sale (seriously, ask).

But given that you are going to file anyway, there is no harm in doing so. HOWEVER, if you need that mortgage payment to perhaps qualify for a chapter 7 (i.e. for schedules I & J) so you don't get pushed into a chapter 13, then don't do it.

You're worried about your neighbors? Worry about yourself!

A friend of mine is a realtor and she said her agency gives all their agents extensive training in short-sales because they're big business right now. If you have any money at all, say $10,000, when the house goes into a short-sale, the bank could attempt to take that from you to cover their loss.

And fwiw, just because you've abandoned the home, doesn't mean you have to stop mowing the lawn. Dh and I walked from our home 10 months ago and the keys still work and everything. If we had wanted to, we could have continued mowing the lawn and keeping the yard up. Only a few months back did we finally turn off the electricity. Before then, all the spotlights were left on.

I am worried about myself! That is why I am asking! There are 6 houses on my street, 3 are already foreclosed on and vacant with weeds growing everywhere. The other 3 are mine and my 2 neighbors. I do plan on maintaining the lawn and I haven't decided about the electric. My priority is filing bk 7 and getting it discharged...I would like this house out of my realm of responsibility sooner rather than later and if there is no harm in doing so, other than a headache for myself...then I will list it. If a realtor can negotiate both of those 2 lenders AND the pmi people into a short sale, then he earns his commish as far as I am concerned.

Best of luck to you. You may want to contact the water district in your neighborhood. Mine put a lock box on the water meter, but I still had to pay a $12 a month flat rate until the house was put up for auction. As far as the electricity, it's best to turn it off. We waited a while and when I finally called the power company, the woman said it was best to do so and there are a lot more squatters out there than people realize.