Posted on: 05th Jan, 2010 04:53 pm
I have been waiting 11 months for the bank to approve my short sale. They will not budge on the PN even though the buyer has offered a higher buying price. My broker thinks that the only way to get around the PN is to have an investor buy the property, then pay me the money to pay off the PN all the while having the investor sell it to the waiting buyer. Do I go for the investor option, just go with the PN of $45k, or foreclose? My credit is already damaged by not paying my mortgage for 11 months! HELP???
By PN, I assume you mean a Personal Note for the shortage on the short sale?
Not sure how that would work ... the investor would have to pay you enough for you to pay off the mortgage entirely, so in reality, the investor would wind up holding the bag for the shortage when they sold it to the subsequent buyer for a lower amount and then you'd owe the investor?
In my personal opinion, a personal note would probably be far less damaging than a foreclosure. It is probably even less damaging than an official short sale where the partial payment is recorded. The problem becomes what you do with that personal note after it's issued. If you can afford the payments and meet the obligations over time, then you should have little additional impact to your credit (which you say is already damaged). If you default on that note, it should be a different kind of default, not a foreclosure, so still less negative credit impact.
The above is an opinion, I have no proof of concept or real world examples to back up the thought process. Just trying to help you think it through.
Not sure how that would work ... the investor would have to pay you enough for you to pay off the mortgage entirely, so in reality, the investor would wind up holding the bag for the shortage when they sold it to the subsequent buyer for a lower amount and then you'd owe the investor?
In my personal opinion, a personal note would probably be far less damaging than a foreclosure. It is probably even less damaging than an official short sale where the partial payment is recorded. The problem becomes what you do with that personal note after it's issued. If you can afford the payments and meet the obligations over time, then you should have little additional impact to your credit (which you say is already damaged). If you default on that note, it should be a different kind of default, not a foreclosure, so still less negative credit impact.
The above is an opinion, I have no proof of concept or real world examples to back up the thought process. Just trying to help you think it through.