Foreclosure to a short sale

[mzbunny26]

Well, I was going to let my house go to foreclosure and yesterday I talked to a realtor about a rental property I was interested in and she "kinda" talked me into going for a short sale on my house. I am so confused! I'm not sure what to do! My discharge for BK is Aug. 17th and my house goes to auction Aug. 8th. Anyone change their mind about foreclosure to a short sale? By the way I am waiting for lawyer to call me back with his advice but thought I would other opinions on here too.
Thanks,
Bunny

[HHM]

The ONLY person who benefits from the short sale is the realtor...so that should tell you something

There is no difference in the long run, if the house is already set for foreclosure, it can be very difficult to get a short sale done, all you get are super low ball offers and the bank has already incurred a lot of the expense to foreclose, so they are usually better off just foreclosing and putting it on the market at that point...it really just depends.

[mzbunny26]

Thanks HMM! I spoke with my lawyer and he said the same exact thing. Too many risks involved. Not going to do it.
Bunny~

[StartinOver]

If your bank says they don't do cash for keys on foreclosures, only on short sales and DIL (and they won't give a DIL offer unless you tried to short sell), would it be worth 'going along to get along'? In other words, starting the process and not really working it very hard, just hard enough to have been in the short sale program for the duration and get the C4K offer for a DIL?

[despritfreya]

HHM and your attorney are soooooooo correct. A short sale is a complete waste of time and energy. The ONLY one who benefits, assuming that after you have done all the work that is required (sending financials a dozen or so times, filing out papers etc.) and get the lender to agree, is the realtor. Run, do not walk, run away from any realtor who wants you to waste your time as they are only in it for themselves.

Des.

[screentest]

Same situation with my current next-door neighbor. He is in the final phase of foreclosure and hired an agent to find his family a rental.

The agent talked him into signing a SS agreement with her and also told him she had "investors" that would probably buy his home and then rent it back to them. She could only present it to her "investors" if they signed an agreement.

They stopped packing and looking for rentals and have now put all their eggs in her basket. Their foreclosure date is 20 days away.

I am on the sidelines watching how this plays out.

ST

[despritfreya]

The agent talked him into signing a SS agreement with her and also told him she had "investors" that would probably buy his home and then rent it back to them. She could only present it to her "investors" if they signed an agreement.

Wonder what's going to happen (if a SS is "approved") when your friends read the Affidavit provided at or just before closing that they have to sign that states that there is no "understanding" between seller and buyer that seller will remain on the property. Should scare the crap out of them.

Des.

[drowning123]

Des, you rock! LOL.

[espo1357]

Well, I was going to let my house go to foreclosure and yesterday I talked to a realtor about a rental property I was interested in and she "kinda" talked me into going for a short sale on my house. I am so confused! I'm not sure what to do! My discharge for BK is Aug. 17th and my house goes to auction Aug. 8th. Anyone change their mind about foreclosure to a short sale? By the way I am waiting for lawyer to call me back with his advice but thought I would other opinions on here too.
Thanks,
Bunny

This looks like an easy dump of the home, in a 7.

Of course, if you want the home a 13 would make sense only if you have a great income and its your dream home.

good luck. keep us posted!

[bulletproof77]

Wonder what's going to happen (if a SS is "approved") when your friends read the Affidavit provided at or just before closing that they have to sign that states that there is no "understanding" between seller and buyer that seller will remain on the property. Should scare the crap out of them.

Des.

And this is currently what is happening to me. Owner "short saled" this rental..After a long stream of sleazy investors and agents walking through and disrupting our lives, we were told "Mr. Investor" intends to occupy the house and we have 30 days to pack and move. Leased another home (owned outright/saw the deed) and am moving this weekend. Once that offer is accepted by the lender, you are done. "Mr. Investor" (in our case) really doesn't like the rental rate we are paying and wants to do Section 8 for more money. Good luck with that, we are so done..

[CCsAreEvil]

I've heard of at least a couple of success stories if short sales. Isn't the main difference that you won't have a foreclosure on your credit record? This is assuming you land a buyer and the bank approves of the short sale.

[despritfreya]

I've heard of at least a couple of success stories if short sales. Isn't the main difference that you won't have a foreclosure on your credit record? This is assuming you land a buyer and the bank approves of the short sale.

When one files a bk their credit report is in the tank anyway. Worrying about what is subsequently reported should be the least of one's concerns and certainly is not justification for time and energy involved in completing a ss.

Just IMHO.

Des.

[drowning123]

I agree Des. That's what I've always thought.