Need help with starting a short sale

[shaung]

I want to start a short sale in California but don't know where to start.I am planning on not paying Mortgage after this month.

1)Do I call them to tell them or will they call me after I miss the payment?

2)I read something here that said as of Jan 1,1009 we do not get taxes on the neg equity.Is that for state or federal taxes or both?

3)since I will no longer be able to write off the intrest and property taxes how do you keep from getting your paycheck taxed?

4)Since I won't be paying th payment anymore should I pay all my debt or will the lender pull my credit and see I have been paying other things off with the money and deny short sale?

Thanks sooo much for all the help in advance........

[Moe Bedard]

1)Do I call them to tell them or will they call me after I miss the payment?

I would call them.

2)I read something here that said as of Jan 1,1009 we do not get taxes on the neg equity.Is that for state or federal taxes or both?

Not sure.. I hesitate to offer any opinion on tax and accounting issues.

3)since I will no longer be able to write off the interest and property taxes how do you keep from getting your paycheck taxed?

See answer above

4)Since I won't be paying th payment anymore should I pay all my debt or will the lender pull my credit and see I have been paying other things off with the money and deny short sale?

They may see that and see that you have the ability to pay. Make a list of the debt you need to keep to live and the debt you do not because you can only have so much. In their eyes they are priority #1 and of course they want you to have a car to drive to work etc. so that would be an allowable debt if it is within reason and not more than your mortgage payment.

I really think you need to speak with an attorney or non-profit and go over everything. Your debt needs to be looked at as well and your income to make a game plan.

Good luck!

[shaung]

Do you recomend anyone or can you point me in the right direction please?Thanks again....

[Moe Bedard]

Nathan Fransen is a California attorney and California real estate broker. He is also an advertiser here on the forum. Even if they stopped advertising, I would recommend him and his team. He has two ladies that are awesome Realtors for his real estate company. Two of the best I have seen at getting these deals done.

Even if you are not in Southern California, they can refer you to an agent and then work in tandem to complete the short sale.

888-756-2652

[shaung]

Thanks again Moe,I know you get a lot of questions everyday and you reply to 2 out of 3 of my threads.I will give them a call today

[mbmullen]

It is important that you go ahead and list the house with a Realtor. I originally list at the payoff+closing costs (atty's, commissions, etc.). The lender will want to see that you are attempting to sell the house without them having to take a loss. They will also need to see that it is unsellable at that price. That's all part of convincing them that they need to approve a short sale.

I would also recommend putting together a short sale package (very much like a loan mod package) for them to review. Each lender has different guidelines as to what documents they'll want and someone in the loss mit department should be able to give you a checklist.

You will need to submit that to them so they can order the BPO. Once you have a BPO number, your Realtor can drop the price to where it needs to be to get a contract.

One last thing; keep your info in your package updated (bank statements, etc). When you get a contract on the house it will need to be re-submitted along with the contract.

Hope some of this helps and please, whatever you do, hire a Realtor with short sale experience. If they don't know what they're doing, the negotiator will not want to work with them.