Posted on: 09th Nov, 2008 08:50 am
For tax reasons I must dispose of a single family residence property by Dec. 31 this year. This was an investment that has turned into a very bad and costly loss and I will never be able to approach breaking even. I have missed 3 months payments on purpose, and the lender has threatened foreclosure, which is fine by me as a last resort. I have also submitted a short-sale proposal, but the lender is not responding in a timely manner and the end of the year is approaching. Even if the lender accepts the short sale, the escrow process could push the closing into next year, which would be a disaster for me. I cannot get the lender's representative to call me back to discuss the situation. Is there anything I can do to "force" the lender's hand to either foreclose or take a deed-in-lieu of foreclosure so that I can conclude this matter before the end of this year? I am beginning to regret trying for a short sale since it appears to have only put things on hold. I must dispose of this property or face a very bad tax situation.
hi joerow!
welcome to forums!
you cannot force the lender to do anything. it will be totally the lender's discretion to consider the short sale or a deed-in-lieu. i would suggest you to speak to the customer service department of the lender and discuss the issue. may be they can tell you whether your short sale will be accepted or not.
in case, the short sale or the deed-in-lieu process is not accepted, you can opt for chapter 13 bankruptcy. however, in this case, you will be able to save the property which i think you do not want to. in that case, i think foreclosure will be the option for you. you can speak to the lender about initiating the foreclosure as soon as possible.
feel free to ask if you have further queries.
sussane
welcome to forums!
you cannot force the lender to do anything. it will be totally the lender's discretion to consider the short sale or a deed-in-lieu. i would suggest you to speak to the customer service department of the lender and discuss the issue. may be they can tell you whether your short sale will be accepted or not.
in case, the short sale or the deed-in-lieu process is not accepted, you can opt for chapter 13 bankruptcy. however, in this case, you will be able to save the property which i think you do not want to. in that case, i think foreclosure will be the option for you. you can speak to the lender about initiating the foreclosure as soon as possible.
feel free to ask if you have further queries.
sussane
Well, frankly speaking, you can't force the lender to make things fast. At least you can send him a request stating the problems you could otherwise come across. By the way, you said you've sent a proposal for short sale. If it's rejected, you can apply for a deed in lieu as you can avoid paying the deficiency (loan balance – home sale price), if any.
May god bless you.
Samantha
May god bless you.
Samantha
