[oc949]

For those of you following my story, here is my update. It is now the end of July.

1. I found a buyer and submitted my short sale package to the lender. It includes a hardship letter and a financial worksheet. The offer was submitted with a competitive price for current market conditions. Do not lowball shortsale offers below current market price.

2. BofA (formerly Countrywide) acknowledged receipt of my short sale package in writing. It may close in 40 days. There is 20 days of review followed by 10 days of investor review followed by 10 days of escrow. But anything could happen: the lender may reject my package after review; the investors may reject it; the property may fall out of escrow if the buyer pulls out. You want to find a solid buyer.

3. I endure repeated calls from collections agents at Bank of America (formerly Countrywide). The left hand does not know what the right hand is doing. Their policy is to continue the collections process until the house sells under short sale. My credit is getting dinged badly I am sure but I don't have the heart to check how much (my score was 860 in April right before all this started).

4. I researched tax consequences of short sale. On your primary residence there is none. The forgiven amount by the lender is not taxed to you as income. It will be on your secondary home.

5. Now I wait, and I wait some more. At least BofA is better about acknowledging things in writing than some other lenders. And my realtor tells me they are more streamlined and organized than the others. So for now, I am praying that this will all work out for me.

More soon. Please share your stories. No one has yet responded to this thread. Come on guys, I'm putting my experience out there. Please do the same.