Short sale offers

[IRAKENJI]

Hi. I'm currently doing a short sale on my house. I turned down the final modification that Chase offered due to a balloon payment ($297K!!) plus we're about $230K underwater so it's not worth it for me to pay for a house that's been "devalued."

Questions:

1. We received 6 offers but 2 identical high offers -- do we submit all offers to the lender or just the 2 highest offer?

2. I only have 1 loan (no HELOC) - should this process go smoothly compared to having a 2nd? BTW, I live in San Diego, CA.

3. If at the end of the short sale process, the lender wanted me to sign a promissory note and I decline to sign it -- does the house then go into foreclosure?

4. How long after the short sale process if there is no deficiency judgment can I buy another property?

Any input is highly appreciated. Thank you.

[HopingtoFind]

Originally Posted by IRAKENJI

Hi. I'm currently doing a short sale on my house. I turned down the final modification that Chase offered due to a balloon payment ($297K!!) plus we're about $230K underwater so it's not worth it for me to pay for a house that's been "devalued."


Any input is highly appreciated. Thank you.

Questions:

1. We received 6 offers but 2 identical high offers -- do we submit all offers to the lender or just the 2 highest offer?

I would submit the 2 highest offers.

2. I only have 1 loan (no HELOC) - should this process go smoothly compared to having a 2nd? BTW, I live in San Diego, CA.

It should be much easier without the 2nd.

3. If at the end of the short sale process, the lender wanted me to sign a promissory note and I decline to sign it -- does the house then go into foreclosure?

If you can't come to an agreement then, yes the house would go into foreclosure.

4. How long after the short sale process if there is no deficiency judgment can I buy another property?

According to Fannie May guidelines you should be able to purchase another property about 2 years after short sale.

[IRAKENJI]

Thank you HopingtoFind.

How long after the short sale process if there is no deficiency judgment can I buy another property?

According to Fannie May guidelines you should be able to purchase another property about 2 years after short sale.

If after 2 years we applied for a home loan (this time with credit repaired) and the underwriter from the lender found out about the short sale or foreclosure --- would that be a reason to deny the loan?

Thanks.

[HopingtoFind]

Originally Posted by IRAKENJI

Thank you HopingtoFind.

How long after the short sale process if there is no deficiency judgment can I buy another property?

According to Fannie May guidelines you should be able to purchase another property about 2 years after short sale.

If after 2 years we applied for a home loan (this time with credit repaired) and the underwriter from the lender found out about the short sale or foreclosure --- would that be a reason to deny the loan?

Thanks.

Of course lender could potentially deny, but most try to adhere to Fannie and Fraddie's guidelines, since that is who eventually will purchase most of the loans. So, if I had to guess, I don't think you will have a problem purchasing two years after short sale.