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Procedure for a Short Sale

Posted on: 10th Aug, 2010 05:41 pm
Hello everyone,

We have an apartment for investment and because the renter does not pay on time, we are in a situation where we can not pay the mortgage, association fees, etc.

What is the procedure to start a Short Sale?

Please advise!

J
Hi jsnunez,

You need to contact your lender and apply for a short sale. The lender will accept your short sale if you're delinquent on your mortgage payments for 2-3 months. Let me tell you that a short sale will reduce your credit score by 75-100 points and it would remain on your credit report for the next 7 years like any other negative item.

Thanks
Posted on: 10th Aug, 2010 09:20 pm
James,

What other options do you suggest? We were able to pay our mortgage until now, but from now on we will have to find other solution

Please advise!
Posted on: 11th Aug, 2010 03:23 am
Hi jsnunez!

Welcome back to forums!

Apart from short sale, you can even apply for a deed in lieu of foreclosure with your lender. If the lender accepts your request, then you can get rid of the property and you won't be liable for paying the deficient balance which results after the property sale. However, it would have a severe negative impact on your credit report and would lower your credit score by 250 points.

Feel free to ask if you've further queries.

Sussane
Posted on: 12th Aug, 2010 12:24 am
What about Obama's Administration Home Affordable Foreclosure Alternatives (HAFA)? Who do I contact for that? Wehre should I go?

Please advise!
JSN
Posted on: 12th Aug, 2010 04:00 am
Hi jsnunez,

If you want to take advantage of HAFA, you need to contact your lender. If your lender participates in the HAFA program of the Obama government, he might offer it to you.
Posted on: 13th Aug, 2010 01:08 am
I have not missed a payment yet . I bought the house in 2005. Can i file for a deed in lieu or a short sale without missing a payment yet. I have been unemployed for some time now and I mam running out of money.Will I end up having to pay taxes on either of these.
Posted on: 26th Sep, 2010 02:16 pm
Welcome cisco,

Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/deedinlieu-unemployed.html#184119

Take a look at it. Hope it helps you.
Posted on: 26th Sep, 2010 11:56 pm
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