Loan Modification Forum - LoanSafe.org - View Single Post - Short Sale

aurers · 05-26-2009, 07:40 PM

Hi Kaye,

I too live in California and have been living in my condo for over 2 years. After 2 kids, a falling market, and a decrease in my husband's salary, I went to B of A for a loan modification only to get denied twice. I bought my condo at $585K (I live 5 - 10 minutes south of San Francisco). The current market value is $399K. Because of the situation, I have talked to my real estate broker to discuss a short sale and this is what she discussed with me:

1. No deficiency judgment will be collected because the home is our primary residence, we never refinanced our loans (2 loans both with B of A), and we live in CA and lucky for us, CA is a forgiveness state.

2. There will be a 1099c, but she said we will deal with that when the short sale closes escrow.

3. Short Sale process will take about 6 - 10 months on average depending on the lender. Notice of default will appear on my credit report after my 1st missed payment. So my agent said to stop payments for June, July and August. Then we will meet in August to get ready to put the house on sale in September. We may be out in March, depending if all goes well.

4) The bank will cover the costs and I do not need to hire a lawyer if I don't need to. She did tell me that B of A will harass me for payments, but she told me to tell them we are in financial hardship and that we were denied for a loan modification twice, so we are trying to get the money. When the house goes on sale, my agent told me to revert all of the B of A calls to her.

My agent is dealing with 11 short sales in the SF Bay Area, so I trust her. But like other people have posted, you can't go wrong by asking a lawyer to look at your documents.

Good luck!

05-26-2009, 07:40 PM	#7 (permalink)
aurers Member Join Date: Jan 2009 Posts: 24 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Short Sale - California Hi Kaye, I too live in California and have been living in my condo for over 2 years. After 2 kids, a falling market, and a decrease in my husband's salary, I went to B of A for a loan modification only to get denied twice. I bought my condo at $585K (I live 5 - 10 minutes south of San Francisco). The current market value is $399K. Because of the situation, I have talked to my real estate broker to discuss a short sale and this is what she discussed with me: 1. No deficiency judgment will be collected because the home is our primary residence, we never refinanced our loans (2 loans both with B of A), and we live in CA and lucky for us, CA is a forgiveness state. 2. There will be a 1099c, but she said we will deal with that when the short sale closes escrow. 3. Short Sale process will take about 6 - 10 months on average depending on the lender. Notice of default will appear on my credit report after my 1st missed payment. So my agent said to stop payments for June, July and August. Then we will meet in August to get ready to put the house on sale in September. We may be out in March, depending if all goes well. 4) The bank will cover the costs and I do not need to hire a lawyer if I don't need to. She did tell me that B of A will harass me for payments, but she told me to tell them we are in financial hardship and that we were denied for a loan modification twice, so we are trying to get the money. When the house goes on sale, my agent told me to revert all of the B of A calls to her. My agent is dealing with 11 short sales in the SF Bay Area, so I trust her. But like other people have posted, you can't go wrong by asking a lawyer to look at your documents. Good luck!