Got an offer on our house...

[aherrmie]

Hi all -

Any advice anyone can give me would be great.

We've had our house on the market since January. Tons of people looked at it, but we didn't get any offers. We finally got an offer yesterday, which would end up as a short sale after subtracting commission & back taxes that we owe. Countrywide would have to eat about 10k.

We are in foreclosure, and the auction date is this coming Friday. I called Countrywide this morning and they told me this:

We can request a short sale. We have to fax over the offer, proof of income, and a letter of hardship. Once they receive our fax, it takes 7-14 days to ASSIGN SOMEONE TO REVIEW IT!!!!!!!!!!!!!!!!!!!!!!!! WTH?????

Does anyone know if they can still put the house up for auction if there is a sale contract pending? I'm thinking that we could accept their offer contingent upon CW accepting the short sale, but I'm just not sure what would happen on Friday.

Thoughts?

Thanks,

Amy

[SinkingFast]

We've been thru Foreclosure with Countrywide.

Only the Investor can approved a Short Sale. Countrywide cannot. When you apply for a Short Sale, it's like applying for a loan in reverse. They want documentation of your income and a listing of your expenses. You'll also need to submit a copy of the offer and some sort of documentation that the buyers are qualified to complete the purchase. Then the Investor decides if they will accept the Short Sale or not.

Do you have the name and phone number of your Foreclosure Technician?? If you can speak with them directly, the Foreclosure Technician may be able to speed along the process of forwarding the paperwork for the Short Sale. Your Real Estate Agent can fax all necessary paperwork directly to the Foreclosure Technician.

With this being Monday, and your Sale scheduled for Friday (??), you may not have enough time for Countrywide to process and present the Short Sale offer to the Investor.

We barely made it in a week to stop our Foreclosure Sale. We had an offer that would pay the loan in full and all costs to sell.

[tadbitconfused]

a question about this question

Isn't it true if you have a short sale and assuming that there is a second mortgage, can't the mortgage company send you a 1099 for the difference that you have to list as income on your income taxes?

[frankies_mom]

I would be interested to know this too. Does anyone know?

[avega]

On a short sale any lien holder technically can issue you a 1099 for gift income on any losses that you would have to pay income taxes on.. worst if your state requires state income tax.. So, yes, both companies can issue a 1099 on a short sale, something that those investors trying to save you from a forclosure by short selling usually forget to tell you.. same thing applies if you settle on a credit card for less that the full balance if the deficiency is over $600.00..