short sale or no? Minny, Edya??

[sobroke]

I'm sure you all remember me posting a thread about a man who wants to buy my house before foreclosure goes through. Well, I looked on my CR and my mortgage lender already states that it is IIB. If the house is foreclosed upon, that couldn't possibly hurt my credit anymore--right. I feel uncomfortable with supplying all the paperwork for this short sale. I've already been through enough with paperwork and legal stuff. This gentleman needs me to write a hardship letter (as if bk isn't enough), paystubs, tax refunds, blah..blah..blah....I guess I am scared that if I don't do this short sale, then my credit will be absolutely crushed (I know it already is) And according to this man, if I have a bk AND a foreclosure, I will not be able to get another house for SEVEN YEARS!! From everything I have read here, I think he is FULL OF IT! Any comments suggestions? It would be nice to hear from a mortgage expert. Thanks!

[Minnymouth]

I'm not a mortgage broker but don't be forced into a short sale unless you want to be.
First why the "hardship letter"?????
A foreclosure is not going to hurt your credit anymore than a BK..... about the same.
And I hate to break it too them, but you can buy another house within two years with right downpayment and credit score.....
Their trying to use a scare tactic to get you to hurry up and do a sale for them....
Is it in your interest??? What are you getting out of it??
The reason for the "hurried sale" is the buyer doesn't want to have to go to auction to buy it........

Use your own judgement, but don't let them push you into anything.

Did you use a lawyer to file? If so consult him about it.

Wish I knew more about short sales, but I don't.
I may not be any help at all concerning this...

Minny

[sobroke]

You are right Minny. I think I just needed to hear it from someone else. I do feel pressured and hurried. Bad combination. My CR already states IIB for my mortgage, so how can anything else be worse? I think it is horrible that this man tells me that I am financially doomed if I don't get out of this foreclosure before it goes to auction. I am hoping to get a house in about 10 months. BUT, if not doing a short sale means I am looking at renting for 7 years, then I will do it. I just think that the company is getting a little personal with my life (they also need a complete financial statement similar to a schedule E, and bank statements) Does anyone know how long the foreclosure process will take? The lift on the automatic stay was just granted.

[BassBoy]

Does anyone know how long the foreclosure process will take? The lift on the automatic stay was just granted.

My understanding is may take 3 to 4 months.....could be less than that though.....or it may be longer. It really depends on the lender. Some are quick, while others may lag behind...........tough question to answer.

[sobroke]

Thanks for your input bassboy. I guess time will tell.

[Minnymouth]

Is the house being discharged in the BK???
If so, let them foreclose and go to auction with it......

Getting another house in 10 months may prove difficult considering you are still in BK... unless your doing a land contract.

You can buy a house within 2 years with a good downpayment and decent credit score.... Quicker if you want to pay a high interest rate....

I still don't "understand" the hardship letter they are asking you for and all you financial affairs.

The buying of your house (the one that's being discharged) during foreclosure should have little bearing on your purchasing a new home.

If you don't want to fool with a short sale - don't!!!

Now if the house is NOT included in your BK - a short sale would be too your advantage because it would sell for more than at auction. If the house is not included in your BK then you would have to pay the difference of what is owed and what the house sells for.

Hope this helps,

Minny

[EdytaHome]

Sobroke,
I sold one house on a short sale and declined to sell the second one this way. The first home had enough equity to cover the 1st mortgage and I was able to work out a quick deal sale for the 2nd mortgage without having to go through the extensive paperwork of a short sale. I do not recommend a short sale if you are discharging the house in BK anyway. Why? As you know now, the paperwork is very extensive and forces you to give allot of personally disclosing information. A hardship letter is just a small part in the whole process. What I found troubling is a paper I was asked to sign that basically stated that if for some reason they didn't agree to the short sale/if it didn't go through, than I would be responsible for all their expenses related to processing of the sale. Scary! Basically, you were signing your life away. Either way, the mortgage company came out on top.

As far as buying another house, it's true that having a BK and a foreclosure on your CR is much worse than just a BK. But if you have a BK on your CR and go through a short sale than it's just as bad because by the time you go through a short sale the mortgage company will report a foreclosure “status” on your CR (unless you are current on your payments).

So basically, don't waste your time.
Hope this helps. You've already gotten some excellent info from all the other folks. Forgive me for not responding right away, I'm out of the country at present.

[sobroke]

Thank you guys so much. I had a feeling that the short sale wasn't in my best interest. I am discharging the house in my bk. My mortgage co. has already reported foreclosure status on my cr. I just didn't feel right about helping someone make a lot of money on my unfortunate financial situation. Clue #1 was when this guy would call us 3 times a day wondering if we've looked over the paperwork. I will have a foreclosure and bk on my cr, but our score isn't horrible and I think in a year or so, we will have an adequate down payment and our scores will hopefully be above 600. Does anyone know what kind of rates we are looking at? 10%? 12%? or lower? Thanks again everyone. You all are a great resource!
Have a safe trip back to the US Edya

[Genenco]

Well, regarding interest, the larger the Down, the lower the amount as you're putting up cool old cash to "Help the deal along" and all bankers/brokers and such just love that