Posted on: 01st Feb, 2011 12:52 am
I have a condo in AZ that I was renting out for three years after moving out of state for work. I've lost about $5000 on it every year, not able to get enough rental income to cover all the payments. The market tanked in AZ and my property is now worth $25,000. My mortgage is $70,000. Last summer, the tenants complained about the air conditioner being broken. I spent $600 to fix it but it broke again the next week so I decided to spend the $5k to buy a new AC. The next day, the tenants gave 30-days notice. I have not been able to find new tenants. Meanwhile, I moved again for work, to a different state, and it is very expensive where I live now. I found an old 1-bedroom apartment to live in. The irony is that my condo in AZ is nicer and bigger than the apartment I live in now, but I pay 4 times as much in this place.
So last fall I decided to put my property in AZ up for short sale. I got an offer the following day, and we submitted everything to the bank with my hardship letter detailing my moves and losses on the property and the fact that I haven't been able to find tenants. I really have done everything in my power to be responsible to the property etc and have continued to make my payments because I didnt want the negative effect on my credit report.
I've waited and waited and felt like my realtor and her contact that goes between her and the bank have not been aggressive at all in my behalf. I have to constantly call them to stay on top of it and even then they dodge me. About a month ago they said the bank didn't like the offer price and wanted an appraisal but didn't want to pay for it so the realtor ended up doing a BPO and sending it to them. Its a smaller bank, the lender actually took over servicing the loans after TBW went bankrupt. Anyway the realtor says its the investors that back the bank that dont like the offer. So I kept calling and emailing the realtor last week to follow up on whether the bank has the BPO and what their response was. And the realtor finally emailed me today saying that the bank has the BPO but she doesn't think they're going to move on it and something about how my loan is just under 100k and the bank will only make 15k after all is said and done and the realtor said she wasn't telling me to stop making my mortgage payments but she didn't see why the lender would ever allow the short sale while they were still making money off my payments - that they have no incentive.
i'm really frustrated because i feel like thats not taking into consideration my circumstances - i'm not just someone who has been living in my residence and is tired of being there and wants to get out of it for the sake of convenience. i moved three times for work and have all the other issues with the monetary losses and the lack of tenants. I really dont know what else to do and I dont know if I should stop making my mortgage payments./ What else can be done to convince the bank to allow the short sale??
So last fall I decided to put my property in AZ up for short sale. I got an offer the following day, and we submitted everything to the bank with my hardship letter detailing my moves and losses on the property and the fact that I haven't been able to find tenants. I really have done everything in my power to be responsible to the property etc and have continued to make my payments because I didnt want the negative effect on my credit report.
I've waited and waited and felt like my realtor and her contact that goes between her and the bank have not been aggressive at all in my behalf. I have to constantly call them to stay on top of it and even then they dodge me. About a month ago they said the bank didn't like the offer price and wanted an appraisal but didn't want to pay for it so the realtor ended up doing a BPO and sending it to them. Its a smaller bank, the lender actually took over servicing the loans after TBW went bankrupt. Anyway the realtor says its the investors that back the bank that dont like the offer. So I kept calling and emailing the realtor last week to follow up on whether the bank has the BPO and what their response was. And the realtor finally emailed me today saying that the bank has the BPO but she doesn't think they're going to move on it and something about how my loan is just under 100k and the bank will only make 15k after all is said and done and the realtor said she wasn't telling me to stop making my mortgage payments but she didn't see why the lender would ever allow the short sale while they were still making money off my payments - that they have no incentive.
i'm really frustrated because i feel like thats not taking into consideration my circumstances - i'm not just someone who has been living in my residence and is tired of being there and wants to get out of it for the sake of convenience. i moved three times for work and have all the other issues with the monetary losses and the lack of tenants. I really dont know what else to do and I dont know if I should stop making my mortgage payments./ What else can be done to convince the bank to allow the short sale??
Welcome jennifer,
It is completely the lender's discretion whether or not they will allow the short sale. You will have to convince the lender for a short sale or apply for a deed in lieu of foreclosure in order to get rid of the property.
It is completely the lender's discretion whether or not they will allow the short sale. You will have to convince the lender for a short sale or apply for a deed in lieu of foreclosure in order to get rid of the property.