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MH_Sucker · 05-23-2009, 01:14 PM

Our escrow closed yesterday!!! Here is our story. I am posting for others who may be in similar situations because this site was super helpful to us throughout our process!

We stopped paying in November 08. We were offered a loan mod that put us into a fixed interest rate and normal loan but increased our payments by about $300 a month. The whole reason we stopped paying was due to finances so we did not take the deal.

We put the house on the market in December. I really did not think it stood a chance of selling because we lived in a town with a lot of inventory (foreclosure, short sale, etc.) and we were in a townhome community with HOAs and the difference in price between our attached unit versus a detached single family was not very great so we thought no one would be interested. We were kind of hoping for 90 days on the market with no offers to pursue a deed in lieu.

We received a cash offer of $184,000 (list was $189,000 and we had purchased the home in 2007 for $432,000) in February. It took the bank until May to approve the offer.

We ended up signing a promissory note for $12,000 over 10 years with zero interest. The note was put in place because the loan had PMI on it and the insurance company refused to approve the offer unless we signed.

It was important to us to avoid foreclosure because we would really like to buy again in the future and did not want to wait the 7 years that a foreclosure would have caused.

I have not looked at my credit report for some time now because it was just depressing. I will wait a month or so and check out the total effect on us.

If you are considering a short sale it is possible but it does take patience and persistence with the lender to jump through all the hoops. Good luck!!

05-23-2009, 01:14 PM	#1 (permalink)
MH_Sucker Senior Member Join Date: Nov 2008 Posts: 30 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Short Sale Success Our escrow closed yesterday!!! Here is our story. I am posting for others who may be in similar situations because this site was super helpful to us throughout our process! We stopped paying in November 08. We were offered a loan mod that put us into a fixed interest rate and normal loan but increased our payments by about $300 a month. The whole reason we stopped paying was due to finances so we did not take the deal. We put the house on the market in December. I really did not think it stood a chance of selling because we lived in a town with a lot of inventory (foreclosure, short sale, etc.) and we were in a townhome community with HOAs and the difference in price between our attached unit versus a detached single family was not very great so we thought no one would be interested. We were kind of hoping for 90 days on the market with no offers to pursue a deed in lieu. We received a cash offer of $184,000 (list was $189,000 and we had purchased the home in 2007 for $432,000) in February. It took the bank until May to approve the offer. We ended up signing a promissory note for $12,000 over 10 years with zero interest. The note was put in place because the loan had PMI on it and the insurance company refused to approve the offer unless we signed. It was important to us to avoid foreclosure because we would really like to buy again in the future and did not want to wait the 7 years that a foreclosure would have caused. I have not looked at my credit report for some time now because it was just depressing. I will wait a month or so and check out the total effect on us. If you are considering a short sale it is possible but it does take patience and persistence with the lender to jump through all the hoops. Good luck!!