short sale on house?

[grnfldz]

have a first and second mortgage on home , totals about the value of home.
countrywide told me they would consider a short sale, what will the second do if a shortsale is done, also all loans discharged in chapter 7 back in jan. also i told the finace company that i have someone willing to pay a little less than what is owed on the property,thats when they said they would consider the short sale,they told me to get an offer letter from the buyer and fill out a hud1 form?

[meme]

thats funny i'm in the same position and my lender is countrywide for 157,000 and second for 11,000.00 with american general. so i'm wondering how the short sale would work for me. i converted my old law chap 13 to a chap 7 friday. im surrendering my car and house so i probably dont need to worry about selling it anyway. i just wanted to avoid foreclosure

[SinkingFast]

have a first and second mortgage on home , totals about the value of home.
countrywide told me they would consider a short sale, what will the second do if a shortsale is done, also all loans discharged in chapter 7 back in jan. also i told the finace company that i have someone willing to pay a little less than what is owed on the property,thats when they said they would consider the short sale,they told me to get an offer letter from the buyer and fill out a hud1 form?

In your case, the debt is already discharged in BK. Short Sale saves the Lender from going thru the Foreclosure process. BUT,......... The amount you can Short Sale will depend on what the Lender and/or investor is willing to take. There will be a limit to the Lender's or Investor's genorisity. Our Lender told us that the Investor would accept up to 10% less than we actually owed.

The HUD1 Form is the Settlement Statement that a Title Company prepares when you sell a house. You probably saw one when you bought the house in your packet of docs and just didn't realize what it was. It shows the amount of the purchase offer and the distribution of the proceeds. Who get's paid what, and where all the money goes. If you are approved for a Short Sale, you cannot make a penny on the HUD1 Form.

[SinkingFast]

thats funny i'm in the same position and my lender is countrywide for 157,000 and second for 11,000.00 with american general. so i'm wondering how the short sale would work for me. i converted my old law chap 13 to a chap 7 friday. im surrendering my car and house so i probably dont need to worry about selling it anyway. i just wanted to avoid foreclosure

Filing BK won't help you avoid Foreclosure. The automatic stay will delay the inevitable unless you are able to sell. If you cannot sell, you'll have a double whammy on your Credit Report. BK and Foreclosure.

Short Sale is generally easy to get approved for if you just have one loan. Lenders don't like to have bad loans showing on their books. They'd rather you sell at a bit of a "loss" than to go thru Foreclosure and then have that house hanging around for a while.

With a 1st and a 2nd, it can be a bit tricky. But, since you're in BK anyway, the Lenders have nothing to loose and everything to gain by allowing a Short Sale.

Call each Lender and ask about Short Sale. The Customer Service Reps will put you in touch with the appropriate Dept to discuss this option. They'll tell you the lowest dollar amount they will accept that you can sell your house for. Then you can work from there.

Same thing applies as what I said above. The HUD1 Form has to show all the monies distributed to other people. You cannot make a penny off the Short Sale.