Foreclosure....short Sale

No, but we did a loan modification. My husband is self-employed so in addition to all of the stuff that they're asking you for, we had to supply 6 months' worth of bank statements and 3 years' worth of taxes including his detailed income and expense statements from his business. No joke over 2 years we submitted this package 6 times to 4 different organizations. Every time we faxed this stuff it was over 100 pages. It's a total nightmare.

Just get two big file folders and clip a list of everything that you need to the front of each so that you have a check list. Then as you locate the documents, make a copy of everything and put the original in one folder and the copy in the other. If you fax things, this will make sending them easier - your "copy" folder will take the 2-sided copies (bank statements, etc.) and have them one-sided so that when you send the fax, everything will be transmitted in order. Sounds stupid but that was one of the most maddening parts...making single-sided copies of all the 2-sided documents. Keep all of your originals in one folder, the copies in another and when you have to fax or mail everything, just send the contents of your "copy" folder and if they lose anything, you have your originals as back up.

Work on this for 15 minutes at a time until it's done. Set a timer for 15 minutes, work on some documentation, then take a break. In a little while, go back for another 15 minutes, continuing until you have everything.

Then, if they don't accept the short sale, there's really nothing you can do. Your credit is trashed anyway and if they want to foreclose rather than sell your property to a willing buyer, that's the bank's problem. Good luck!

Have you spoken with an attorney that specializes in foreclosure defense? Most realtors really don't know what they are doing when it comes to short sales and foreclosure, and the laws surrounding these situations are so tricky. I'm not sure what the law is in your state, but it would be smart to talk to an attorney to help get all your ducks in a row. Good luck to you!

I know its overwhelming but hang in there. I am an attorney who handles a lot of short sales and what you are being asked for is completely normal. And I guarantee they will ask you to update the paystubs and bank statements, so for your own sanity keep them handy. What I will tell you is typically the banks are looking for 85% of the fair market value of the property (as will be determined by an appraiser). So your realtor is the best person to determine that - - ask him.her what they really think the fair market value of the property is and take 85% of that to see the likelyhood that the offer will be accepted. That is a generalization, some will go as low as 80%, but this is a fairly safe number. Also, make sure whomever is handling the short sale (whether it is the realtor or an attorney) accounts for every possible expense that is currently outstanding and that may be outstanding by the time the sale comes in 3-4 months.

If you want to message me privately with any questions feel free and good luck.

I have never been through any of this but I do know some. The only way a bank will allow a short sale is to avoid foreclosure since the remaining balance becomes unsecured or could be written off.

A lot of people have been going after short sales to get out from under an upside down mortgage when they can actually afford the mortgage payments. The banks will not allow that and that is most likely what they are looking for with all the documents you are providing.

If they say no you can still sell the house short but you will have to secure a loan for the remaining balance. The other option is that you will be foreclosed on.

Were you approved for the short-sale yet or not? We went through that whole process as well, and it is overwhelming, but it worked in our favor. We first got approved for the short-sale and the bank came out and did it's own appraisal before we listed it. The bank approved the first offer we received. Now, my sister had her home listed at one price, never had her bank do an appraisal, received an offer, and her bank would not budge and actually went up 30K on the price. They had to relist at that price and no one is offering. It is up to the bank at this point, but what's in your favor is they will lose more money going through a foreclosure than settling on a price at short sale. My sister has opted for a "in lieu-of" instead of foreclosure. Basically, from what they have been told, they are signing their home over to the bank instead of the bank foreclosing and their credit only takes a hit for the same amount of time as the short-sale (2 years). Something to possibly look into. So, the bank could say no to the price, and if they do, maybe the people who put the offer in will go up on the price. Probably not. Keep showing the home, and get backup offers. The bank will only not approve you for the short sale if your financial statements show you can afford it.

Not me, but I'm sorry for what you are going through. Alot of people are losing out on real estate and their credit, too, has been demolished by this economy b/c of it.

Hope you get it all figured out. Sorry I can't offer any advice.

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