we're thinking about doing a short sale...advice?

[sadness]

This is my first time posting in the short sale section. I previously posted under the Chase loan mod section and loan mod section.

Brief summary. Was trying to do a loan mod with Chase since Feb '09 because my pay was cut 20% and my husband started a new job. Anyways we didn't find out until October that we were denied the loan mod because even though more than half our income goes to our mortgages, the investor says we don'y qualify because we make too much money still. Yea right...whatevers.

We are current so we thought maybe that was hindering our chances. Last week we decided that for Nov, we should just stop paying. But now after thinking about it, they probably still won't help us since they denied us before because we were making too much money still.

So now we're thinking about doing a short sale. Hopefully during the time that we are waiting for a buyer, we can save up all that money that we aren't paying for our mortgage.

So a couple of questions:
1) are short sales pretty successful?
2) i live in northern california, from what i read in this forum, the banks can't go after us for the difference right?
3) is it really true that the 2nd mortgage company are willing to settle for only 10% of the actually loan amount?
4) do we also not pay our property tax due in dec?
5) what do we do with our HOA payment? do we keep that payment current?
6) any other advice or things we should know about short sales?
7) can i still live at my home while it's being put up for short sale?

(we will be working with a realtor that specializes in short sales)

Ok, sorry that was more than a couple of questions. . I'm so glad I found this website. Everyone has such great info, and it's nice (well not nice but I guess somewhat comforting) to know that I'm not the only one having to deal with greedy banks. If everything goes as planned, and if we can stay at our place for free for at least 6 months, we can finally have savings again and pay off all our credit cards and never have to deal with banks ever again!!!

[HopingtoFind]

Originally Posted by sadness

This is my first time posting in the short sale section. I previously posted under the Chase loan mod section and loan mod section.

Brief summary. Was trying to do a loan mod with Chase since Feb '09 because my pay was cut 20% and my husband started a new job. Anyways we didn't find out until October that we were denied the loan mod because even though more than half our income goes to our mortgages, the investor says we don'y qualify because we make too much money still. Yea right...whatevers.

We are current so we thought maybe that was hindering our chances. Last week we decided that for Nov, we should just stop paying. But now after thinking about it, they probably still won't help us since they denied us before because we were making too much money still.

So now we're thinking about doing a short sale. Hopefully during the time that we are waiting for a buyer, we can save up all that money that we aren't paying for our mortgage.

So a couple of questions:
1) are short sales pretty successful?
2) i live in northern california, from what i read in this forum, the banks can't go after us for the difference right?
3) is it really true that the 2nd mortgage company are willing to settle for only 10% of the actually loan amount?
4) do we also not pay our property tax due in dec?
5) what do we do with our HOA payment? do we keep that payment current?
6) any other advice or things we should know about short sales?
7) can i still live at my home while it's being put up for short sale?

(we will be working with a realtor that specializes in short sales)

Ok, sorry that was more than a couple of questions. . I'm so glad I found this website. Everyone has such great info, and it's nice (well not nice but I guess somewhat comforting) to know that I'm not the only one having to deal with greedy banks. If everything goes as planned, and if we can stay at our place for free for at least 6 months, we can finally have savings again and pay off all our credit cards and never have to deal with banks ever again!!!

We have completed a short sale with Wells Fargo and had a closing last week, so let me see if I can help you out with your questions.
First and foremost prepare yourself for a long process.... ours took about 7 months.

1) are short sales pretty successful?

From what I have read and heard most of the attempted short sales do not succeed... from what I understand about 25% to 30% succeed.


2) i live in northern california, from what i read in this forum, the banks can't go after us for the difference right?

It depends... if you have a 2nd which you have re-financed and you're currently underwater it will most likely be charged off and they can go for the difference.

3) is it really true that the 2nd mortgage company are willing to settle for only 10% of the actually loan amount?

Generally they are willing to settle between 5% to 10% of the loan amount... but that is not a guarantee.

4) do we also not pay our property tax due in dec?

If you're proceeding with a short sale, I wouldn't pay property tax, unless you're planning to stay current with everything...property taxes are first in line and will be taken care of by the lender in case of short sale or foreclosure.

5) what do we do with our HOA payment? do we keep that payment current?

I have heard many times advice to keep up with HOA payments. As they can come after you even after foreclosure or short sale.
I would also keep up with insurance payments.


6) any other advice or things we should know about short sales?

Just prepare yourself for a long a tedious process.

7) can i still live at my home while it's being put up for short sale?

Yes, you can live in your home, it is yours until short sale completes or it gets foreclosed on.