Short Sale On House

[freshstart32]

Has anyone here every had any experience with short selling their house?

We are currently working with an investor who is going to be buying our house and he is working with the bank on short selling it. He has done it many of times and says that it can be a long process because the bank doesn't always want to agree to it so fast. So we have done all the paperwork with him and signed all the papers that basically state that he bought it on the condition that the bank will accept the short sale and if they don't then he rips up the papers and well we are left with the house we don't want anyway. When we signed the papers he wanted a date that we would be able to move out by to put on the papers and we said Sept. 1st. When I called to talk to him the other day to see how things were going he said that he has sent them the short sale papers and that he is waiting to hear back from them. He also mentioned that after or on Sept. 1st we would need to set up a time to meet with him at the house to turn over the keys and the garge door openers. He basically buys houses to then do a lease to buy option for people well like us that have blemishes on their credit and need a year or two to get their score built back up. So he can't lease it out until all the paperwork is done with our bank and they agree to it so why does he need our keys and stuff?

Does that make any sense to anyone? Should we turn that stuff over to him or wait until it's over?

We are just worried I guess. We got screwed by a broker on our refi and that is why we are in the mess we are in now and we have been so leery of everyone since then. Our attorney was the one who pointed us in his direction. I just didn't know if anyone else has had any experience with this at all.

[lrprn]

Should we turn that stuff over to him or wait until it's over?

I don't have experience short-selling, but I do know that I would not turn my keys, etc over to anyone who did not have signed papers in hand stating that they owned my home no matter who recommended them.

We have forum members who have sold their homes in a short sale before filing. Hopefully one of them will jump in here.

[freshstart32]

See that was what my gut was telling me also. I mean we signed papers but he hasn't paid anything and I still hold the mortgage on the house until the bank decides to accept the short sale so I think I should still hold the keys and stuff.

Please if anyone else has any other information or experience I would greatly appreciate it. We are so new to this and never even knew that anything called a short sale even existed.

[keepmine]

You're filing bk. Why worry about a short sale? Just include any defiiency balance in the Chapter 7 and move on.

[freshstart32]

Well we are doing the short sale because our attorney said if we could get the house sold on a short sale that would look better on our credit than having a foreclosure listed and when we went to talk to him about the bankruptcy we had the house on the market and it just wasn't moving. We are upside down in our mortgage due to a overappraisal on a refinance last year. We made all the payments up until the day we decided to do the short sale and they said to stop paying them because we would have a better chance of the bank short selling if we were behind on the payments. We are now late 3 payments

[lrprn]

Well we are doing the short sale because our attorney said if we could get the house sold on a short sale that would look better on our credit than having a foreclosure listed

Go back and speak to your attorney. Run this short sale situation by him and get his advice.

Also the last thing you should be worrying about right now is your credit report. Once the bankruptcy hits, it's going to be trashed anyway. Don't believe the stories that tell you you won't ever get credit again. Most Ch 7 filers get decent offers for everything (home loans, car loans, etc) starting about two years after filing with a sterling on-time credit payment record after filing.