So scared...if short sale doesn't happen, do we walk?

[tiredofwellsf]

So after MONTHS of skullking around loansafe and getting a great education while at it... we have decided to attempt a SS with Wells. We have been at war with them for about 2 years... many sordid details. Chp 7 was converted into 13 after mortgage was caught up...at that time Wamu sold our loan to Wells, Wells said we were way behind after bk discharge, went into mod after mod, forbearance after forebearance. Now we are at our wits end. Husband lost substantial income last year, it is now a third of what it once was, ironically he is in the construction biz, so here we are.

Anyway, we contacted a RE agent who emailed us with a list of info he needed (bank statements, etc), a release of info, and a contract for the sale of our home. The contract already list the name of a buyer but no monetary offer. He said the name is a potential investor. He assures us we will need nothing at closing. He has done 40 SS's this year, including a condo of his own. His conversations with my husband have been informative but relatively short, basically, this is what I need from you and this is when I need it.

We called today with a LIST of questions and he answered each and every one, seemingly competently. I know it's just the begining but he is making us feel like it could actually happen, but made no promises. We found a very nice rental that was built in 2007, and the builder can't sell it, imagine that, and he has actually offered to lease purchase, should we choose which we probably wont, the house is nicer than ours, bigger, but 200$ less per month, and only 5 minutes away.

SO, one of my many questions is do we risk putting a deposit on a rental or wait to see what happens with a SS? Also, the RE agent told us he always advises his clients to continue to make house payments but most of them chose not to, so do we make them or not? This is all so uncertain and I'm a planner who has no control over anything right now. It's such a scary process. When we bought our home 8 years ago, we could afford it, our issues started way after we signed the dotted line.....any help or advice is greatly appreciated!

[Enough Already]

Hi Tiredofwells,

Short sales seem to take a VERY long time to actually close, so rather than finding a rental now I'd wait until the SS has been approved by your bank and you have a closing date set. With the way things are I'm sure you'll be able to find another good rental when the time comes.

As far as making your mortgage payments that's up to you. Although I have heard that the banks won't give you the time of day if you're current on payments.

I'm a planner too, and it is very hard to plan with so many things up in the air. In this situation I've had to force myself to just try to relax, and know that things will work out in the end. Otherwise I'd end up driving myself crazy.

Good luck to you, and please keep us posted.

EA

[AZOwner]

I am so sorry that you are in this situation.

We were planning on short selling. We're in AZ -- and our 2nd is all purchase money, so we decided just to walk.

If you are not going to stay in your house I would recommend the following (echoing the sentiments of my good friends here):

1. Stay in the house as long as you can and stash cash (meaning don't have your bank accounts in the same bank that holds your note -- preferably move you funds to a local bank or credit union if possible)
2. Pack.
3. When you receive your forclosure notice with the date of auction, start looking for a rental

Best wishes to you!

p.s. please sign our petition and leave a comment at the Huffington Post article on the petition -- both links below.

[HopingtoFind]

Short sale takes a while, we received an offer in May and final approval beginning of October, also with Wells, so I wouldn't worry about rental until you get closer to closing.
As far as whether or not to make the payments.... it depends, I know that Wells have approved short sales for those that were current. But the only reason to keep making payments is to reduce the hit on your credit, with BK already on your credit, I am not sure what you would gain by paying....
Also, if I already had a BK on my credit report, I probably wouldn't do a short sale.... the worst that could happen to your credit already happened....unless you're in recourse state and are trying to avoid deficiency judgement.

[booggs28]

Originally Posted by AZOwner

I am so sorry that you are in this situation.

We were planning on short selling. We're in AZ -- and our 2nd is all purchase money, so we decided just to walk.

If you are not going to stay in your house I would recommend the following (echoing the sentiments of my good friends here):

1. Stay in the house as long as you can and stash cash (meaning don't have your bank accounts in the same bank that holds your note -- preferably move you funds to a local bank or credit union if possible)
2. Pack.
3. When you receive your forclosure notice with the date of auction, start looking for a rental

Best wishes to you!

p.s. please sign our petition and leave a comment at the Huffington Post article on the petition -- both links below.

I have to agree with Az - since you say your a planner - plan for the worst and hope for the best.

We have tried to get a loan mod in the works since the end of August and since I can never get the time of day or a return call, we decided that it was in our best interest to just walk away. I did discuss a short sale with my rep when I talked to him last which was several weeks ago, however, getting the banks to actually agree to it is hard and not to mention they have my house estimated at 129,500 which is total preposterous but none the less, it is what it is.

I have started to clear out things around my house that I have manage to gather over the last 4 years here. I have alot of stuff We have been saving our extra money and put only what we need to cover other bills in the bank. I have been paying cash for just about everything else as it has been more manageable for me to do that.

I have been also keeping an eye on rental properties in our area as I am going to need at least 4 bedrooms as there are seven of us and we have a dog as well.

You may also want to contact a tax advisor to see what your tax liability will be if you so choose to walk. Check the IRS.gov website for the Mortgage Forgiveness Relief Act and read up on it as well.

best of luck, also, please take the time to visit and read the petition that Az has linked in her post .

booger

[tiredofwellsf]

Thanks for all of the advice. We are already behind and Wells has sent us the paperwork for a SS, but what scares me is the thought of coming home one day and finding our stuff on the street with the locks changed!
Actually, May to October doesn't sound like a terribly long time to me, after all we have been through!
I had a thought today about the SS not going through, the only other option we have is FC. Like yall have said, the damage to our credit has been done! So I'm thinking of the stash cash option then if SS doesn't happen, we got the dough to move on!
The hardest thing for me right now I think is pride. My MIL and I have never gotten along. She has NEVER owned a house in her life and when we bought ours, it wasn't, Oh congrats, but her exact words were " I hope you don't get in over your heads with this!". We were making excellent money and actually purchased a house for ALOT less than what we were approved, because we didn't want to be "house poor".
I gotta learn to let go of pride!

[tiredofwellsf]

OH and AZOwner, I signed the petition and sent emails to my reps! Quite liberating!

[AZOwner]

Thank you. Isn't Freedom grand?

When you wake up every day be proud to have exercised your right to have a voice. Don't stop there. Contact your state representatives, HUD, your state AG, the media. It is liberating!

Don't bother with Erin Brocovich -- she doesn't respond either. I tried. Ahhhh, heck . . . . GO FOR IT!

As one of my favorite members on this forum says, if you stand on a street corner yelling loud enough and long enough that Wells mother is a whore, someone is going to listen. (lemaudit) that by the way is a great meditation visual . . . lol



Sorry, no offense intended to anyone -- except maybe Wells.

[tiredofwellsf]

AZOwner you got me thinking, and ya know, what the heck do I have to lose by contacting whoever I can?! I haven't gone that route but the only thing I have to lose is time and since sleep is impossible with all this mess going on, I have time!
You mention freedom being grand, and yes it is! My coworker was debating yesterday whether to go to the gym after work or go vote for Atl. Mayor and I told her my husband served this country so she would keep her right to vote so she needed to go and vote! Well I lost my work out partner yesterday, but for a good cause.

[cahomeowner]

go to the NACA thread where many people including myself have received permanent loan restructures at 2%. I have tried to work with the banks and other loan mod companies. NACA was the only one that actually yielded results for me.