Short Sale Tips

[Maurice Bedard]

Short Sale Tip #1

The Hardship

Like a loan modification, a hardship must be taking place in order for your lender or servicer to grant or accept a short sale. It's important to remember a lender "usually" will not even discuss a short sale until the homeowner has fallen behind on payments right around 90 days. The lender must be convinced taking a smaller loss now is better than a bigger loss later. To make that case, start with a letter written by the seller giving an overview of the seller's desperate situation.

The lender must recognize the seller's inability to pay the loan, immediately and in the future, and that the situation is irreversible. The seller should supply as much evidence and documentation as possible, such as divorce papers, evidence of job loss, delinquent accounts, utility shutoff notices, car repossession paperwork, last two years tax returns, recent pay stubs and recent bank statements. If the lender thinks the seller has money or assets stashed away, it will never go along with a short sale.

You can view example hardship letters here.

Short sale Tip #2

Get organized:

Buyers must be organized and present a clean offer, make sure that you have your financial statement or lender letter ready to submit with the offer. Also be prepared to buy a property that is being sold as is without any credits for repairs or fix-up. The bank or lender won't approve the Short Sale if it is too far below the market value of the house and they will do their own BPO (Broker Price Opinion) and/or appraisal before accepting or countering an offer. Remember that a bank may not accept even a full-price offer because they don't educate the seller on how to price the property or what it is that they are looking to net.

Since Short sale properties are most likely being sold as is, the buyers should make the offer contingent on the findings of a home inspection. Sellers are required to disclose material defects that they are aware of, but by this point the owners have stopped making their payments and have no incentive to do anything to the house because they'll make nothing on the sale.


Short Sale Tip #3

The Success of The Short Sale Lies With a Great Real Estate Agent

Some real estate agents are well versed in and only work with Short Sales. They learn the ins and out of working with the lenders loss mitigation departments, and getting approval from them. The process is similar with every transaction, but each of the lenders have different reps behind the desks making decisions. Even more complicated is that each bank has different departments. For a Short Sale the two departments that you would be working with the most would be the legal department and the loss mitigation department for the short sale process and these two departments seemingly don't work in conjuction with each other.

From the sellers standpoint, you need a real estate agent who specializes in Short Sales to make sure you are as timely and effective as possible with the lender. Also you would need a real estate agent that is a very good negotiator and one that could guide you through the process with the documents required to submit to the lender along with both the listing contract and the purchase contract.

From the buyers standpoint, you need an agent who specializes in Short Sales to guide you to the better deals and to make sense of the long process of acceptance. Also just as the seller needs an agent that is a very good negotiator, so would you. For buyers, short sale transactions can be a roller coaster ride. They need to have patience because the process is so long. Even when the homeowner and the buyer settle on a sales price, the lender still has to approve it and the process could take anywhere from 30-90 days, sometimes longer if there is a second lien holder involved.

[felixalynn]

I have a couple of questions regarding short sale.
Firstly, we are not deliquent on our home payments...yet!
Do we have to be before considering fshort sale.

Secondly, up until June my husband was making very good money (over and above his pension that he gets now)..if the short sale package asks for last 2 years of income tax and last 6 months of bank statements he is concerned that the lenders would not consider a short sale. We are underwater quite a bit on our mortgage.

Our mortgage was based entirely on his monthly pension which was sufficient at the time. However, since we purchased the home in 2006 we have had a huge financial debt put on us,.. hence that is why he has been working....to cover this financial debt. He is self employed so his work comes in fits and spurts and outlook for the next several months is very gloomy.
So, I guess Im asking even though his income tax would show he made sufficient monies and we included the financial debt that we incurred after the home purchase will they consider a short sale.

We have a seasoned realtor who is willing to market the home for us.

We live in Florida....citizen is our lender...and fannie mae is listed somewhere on our documents!

[Maurice Bedard]

felixalynn,


A short sale is considered a pre foreclosure......and most trying to obtain one are already in default and have received the NOD..........most lenders require that the house be on the market anywhere from 60-90 days before even considering one, and most have to use it as a last resort because they have been denied any other workout options by the lender, they have lost their job, or the payment has adjusted and gone throught the roof and became unaffordable. You will have to submit a short sale package with your financials and see if the investor will consider that option...........if your lender is available today, call and see if they can get that out to you as that will be your first step along with getting the house on the market.....

[jean57]

I am brand new to this forum and have a question about a short sale. I have been approached by a real estate broker that claims to have an investor who is buying up short sale homes. The broker claims that this investor will put together all the paperwork necessary to get approval for the short sale. This investor only writes deals with Citibank and has guaranteed that they will get a buyer for our house. We do not want to lose our home so he suggested we use a relative with a fico better than 680 to qualify and then buy the home. This lender is also providing $10k as a down payment and the buyer will incur no fees. This sounds like a scam and I wanted to know what questions and guarantees I should get before signing any documents.

[pattona]

I think you are right to be careful. I was turned down for a short sale of my deceased mother's condo because the bank will not sell to a related party, even if the borrower is deceased and there are no other assets. I believe this is a FNMA rule and I wouldn't be surprised if most banks follow it. You need to check with your bank to find out whether they will allow sales to a related party.

Also, as Cat says, usually they want to see the home listed for 60 to 90 days and for the full amount of the loan balance(s). In my situation that would have been for $750k or over $300k above the last sale in the complex!

On the one hand I see where they are coming from but on the other hand they are going to do a BPO to determine price anyway. You would think they would be relieved that they don't have to pay commissions and other closing costs but it doesn't seem to work that way.

Also, even if you do find a friend or family member willing to buy the property, what is the plan? Are you going to continue to live in it? What position are you putting your friend/relative with respect to their credit and debt ratio?

[jean57]

Thanks for the response. I am meeting with the broker today and will be asking questions regarding your suggestions. Will be back after that meeting.

[Maurice Bedard]

jean,


What they are proposing to you is a scam and also considered fraudulent......and also please, please, please, look for another agent that is not pressing you to be a party to fraud to list your property...........and the FBI is looking into it.........
The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."



here is an excerpt of an article that was written on this very practice...........

Phony 'Short Sales'

In a scam on lenders, homeowners have been lowering their mortgage payments by arranging fraudulent "short sales" at prices less than what they owe their lenders. The buyer whom the seller chooses, who may be a relative or friend or a "straw buyer" paid for his service, agrees to transfer ownership back to the seller, who winds up with a smaller mortgage on the same house and never has to move.

In such a short sale, the seller commits fraud by having a side arrangement with the buyer that he does not disclose to the lender. When lenders accept short sales, it is because they think the price is the best they can get. Mortgage industry officials say lenders would reject a sale in which there was a special relationship between seller and buyer on the grounds that the selling price most likely was not the best one available.

A borrower who takes part in one of these scams can be sued by the lender or criminally prosecuted. The real estate agent involved can be prosecuted and lose his or her license.

And a lender who discovers he has been bamboozled into approving a loan with phony information can require the agent or borrower to pay off the mortgage immediately

[faith]

Thanks for the response. I am meeting with the broker today and will be asking questions regarding your suggestions. Will be back after that meeting.

Jean,
I hope you listen to what Cat says, remember, if it sounds too good to be true it probably is.

Just stop and think no one will give anyone for $10,000 free and clear, there is something fishy about it. Don't even meet him or answer his phone call.

You can get a good real estate agent who knows about Short Sale by checking the bbb search and just put the zip code in your area. Call first your lender and ask them their requirements and process about Short Sale.

There's a lot of crooks there who are using the homeowners frustration and confusion into a Cash Machine. Beware, this person is a Scam. The Lenders has their own policies and procedures about Short Sale. First of all, you have to put your house in the market fot at least 60- 90 days, you give authorization to your lender to talk to your agent. You have to have a buyer that makes an offer without which NO LENDER will accept any Short Sale. It took me 2 listings, 7 buyers that backout and 10 months for Countrywide to approve my short sale and another 1 month and 10 days to close the escrow.

So, please, listen to Cat and if your heart says there's something wrong with this guy, follow your heart, there's three of us now that's telling you to be careful, go the other route, don't go this route. May God gives you discernment and the courage to say No and make the right decision.

God bless you and take care.


Faith,

[Worried]

Hello Loansafe.org,

You are so great. My lender is asking me to do a short sale on my rental. My questions are:

1) Will I be responsible for the difference in the amount I owe and the short sale amount?

2) How will a short sale appear on my credit report.

My lender is Washington Mutual. Whoo hoo!

[faith]

Hello Loansafe.org,

You are so great. My lender is asking me to do a short sale on my rental. My questions are:

1) Will I be responsible for the difference in the amount I owe and the short sale amount?

2) How will a short sale appear on my credit report.

My lender is Washington Mutual. Whoo hoo!

Hi, worried, welcome to this forum.

I find this thread from Moe very helpful to answer your questions:


http://www.loansafe.org/forum/forecl...eed-lieus.html


It will really help you, thanks for Moe, Cat and Prof Shays and Andrew



Faith

[Dave_R]

Hi all. We have a real estate agent working on our hosue(10 months behind) sale as short sale. He is doing the paper work to present to the bank. Do I have to call and tell the bank, that I have listed the house for the sale. Or just let the real estate agent deal with it. Thank you.

[CHensley]

Moe,

We, like many, are in the boat where our incomes have been greatly impacted and we are seeking some help to protect the last vestiges of cash/safety net our family has accumulated.

I'll be brief with the facts. We purchased in Orlando, FL during 2007 for $515K and put down enough cash to result in a note of $380k. We have paid and are paying timely but our incomes have changed. We have tried to refinance but the home appraises for $220k or worse, comparable in the neighborhood result in a value of $200k.

I am going to proceed down the path of hopefully a loan modification but a short sale could allow us to stay in the home. I have a family member who would buy the home and then rent it to us i.e. they would obviously have to get in at the right price. I've been reading the post and it seems obvious that collusion could be construed but if they pay market price, which would make the note ~50% or more (or our new rent) of what our current mortgage payment. We are not people to scurry from our debts but with $50k in safety cash, which would get eaten up pretty quickly, we are about to go "on a burn" given our new incomes.

Any corporation would protect their assets....I am trying to protect ours. We have been abysmally affected by the foreclosures/walk aways in our neighborhood (~50%). Would you have any advice....to effectively negotiate a short sale w/Citi to my family or how to loan mod this so it fits with our income.

Not desperate yet...trying to be preemptive....this could get bad if we need to relocate to for better jobs....Please advise...

[felixalynn]

Hi:
Could someone give me the direct telephone number to Chase. We faxed documents the other day regarding the prep for short sale. There are 2 interested buyers, but not concrete offer yet. Anyway, we don't have a direct number to the department...and we are not sure what department. Chase rep told us what to submit so we did...but as you know they lose most documents. We are well aware of the time length and the "lost" document scenario. We tried a remod with Chase and because we had the house for sale, but willing to stay if they remod they declined our application, so now we are trying a short sale. The house has been on the market for almost a year with NO offers.....
So thank you for any help you can give us....we are not late with any payments yet, but its coming!.....Felixalynn

[Chris Sorensen]

I e-mailed one of the managers today. Hopefully Monday I'll reveive an answer and I will post.

Chris Sorensen
Founder, USA HELP, Inc
www.freehomeownershiphelp.org

[ccimmino]

Moe - question - I'm a realtor assisting a seller in pre-foreclosure. They have a Primary with a balance of about $103K and a HELOC with a balance of about $65K. Both loans are with Chase. I've done shorts successfully, but never with Chase and never where the buyers offer was enough to completely pay off the first - this buyer's offering $119K.

The first is foreclosing (date set for January 2010). The HELOc will be wiped out in the foreclosure. Do I attempt to initiate the short sale with the HELOC, since they're being shorted, or do I initiate with the primary loan, the one that we will pay off completely if the property is sold - so it's not really a short for the primary ?

A lawyer associate, and a lender associate have both given me conflicting answers. Lawyer says go through first. Lender says go through HELOC. I need to get the property sold for the seller before it forecloses and because of how long this process takes, I don't want to waste time in the wrong place. We have only one shot to get it right.

I just met the seller yesterday and have the buyer lined up now, all ready to go. I still don't have it listed yet and am concerned also, that the offer is only $119K when the BPO is $140K - do you think this will be an issue and if so, what can I do to mitigate it ? Any advice is appreciated.

The property is in need of repair, vacant and has been vandalized. The area is great.

[faith]

Hello,
I have Short Sold my house, lender is CW now BA, investor is Fannie Mae. From what I understand the lender accepts 85% to 90% of the fair market value of the home. So if BPO is $140K, 85% of $140k is $119k, that's why they have made you an offer of $119k. I don't think you will have a problem with that offer since the house needs repair, vandalized, you need to take pictures and let the lender know that the offer is good inspite of the damage and needs the repair etc. You should prequalify the buyer first to see if the income and the credit score is acceptable to the lender. They might ask the seller to sign a promissory note for the 2nd mortgage, you can tell the seller to make an offer from 5% to 10% of the $65k, payable in 5 years, no interest But make sure that the lender will put in writing that the Short Sale is paid, settled in less than full balance in writing.and no deficiency judgment against the seller.

You need to put the house in the market because the lender requires it to be in the market within 60-90 days, and also submit to the lender the Short Sale package including her authorization letter to talk to your lender.

Well, good luck to your Short Sale, wish you the best.
God bless and take care.

Faith

[dougswife]

Received HAFA papers from Chase today. Once I send the paperwork, how long do I have to get the house into shape for selling ie. de cluttering, etc.

Hoping for more time to save in NJ!

[Maurice Bedard]

You should have plenty of time. 60-120 days plus. This takes time and that is if it even goes through.

Good luck and Happy 2011!

[dougswife]

Thanks for the reply, is that 60-120 before the house would get onto the market? Sorry, new to all this.

[BabyBlue]

I have now come to the time when all else has failed and I suppose short sale is the next and last option to consider, but I am so tired of con artists who can I trust? I live in Southern CA near Palm Springs. If anyone can recommend a trustworthy (is that still a word?) realtor who is experienced in handling short sales I would be very grateful for the referral.

I know nothing about short sales so I will also need to find reliable resources for information as well. Is seems as if there are so few honorable people left in the world...it is like a minefield of evil. Thanks for any guidance.

[BabyBlue]

I have found a Realtor/Broker who will do a short sale for me. He has emailed me documents to e-sign and return. We did not yet talk about the listing price which seems odd so I am going to send him an email to ask about it. It is my understanding that I do not have to pay any fees or closing costs at all so I will be clarifying that as well. My house, he said, may take until July to sell as these often take time but then he said as soon as it is listed there may be many people who come by to see it (presumably these are other Realtors). He also said that when the bank agrees to a short sale that freezes any pending foreclosure action which is at least a little comforting. There will be no sign in front of my house because he said most of this is done via I-Net these days. He told me not to spend much money fixing it up (No kidding!). I owe about $207k thanks to this FRAUD neg am loan, grrrrrrr and he asked me what I thought the house would be worth in today's market and I think that is about $250K so I am thinking I should get a little money back (Since I am losing almost $200K). I would be very interested in other's short sale stories or advice....thanks.

[freedomwon]

I have found a Realtor/Broker who will do a short sale for me. He has emailed me documents to e-sign and return. We did not yet talk about the listing price which seems odd so I am going to send him an email to ask about it. It is my understanding that I do not have to pay any fees or closing costs at all so I will be clarifying that as well. My house, he said, may take until July to sell as these often take time but then he said as soon as it is listed there may be many people who come by to see it (presumably these are other Realtors). He also said that when the bank agrees to a short sale that freezes any pending foreclosure action which is at least a little comforting. There will be no sign in front of my house because he said most of this is done via I-Net these days. He told me not to spend much money fixing it up (No kidding!). I owe about $207k thanks to this FRAUD neg am loan, grrrrrrr and he asked me what I thought the house would be worth in today's market and I think that is about $250K so I am thinking I should get a little money back (Since I am losing almost $200K). I would be very interested in other's short sale stories or advice....thanks.

I have not been through the short sale process myself, but do have an excellent question for the agent you're thinking of hiring. I would ask how many short sale transactions has he/she closed with your bank? I know by others experience, this is critical to the success of the short sale actually making it to the closing table. Every bank is different in terms of what they will accept. I've heard stories of offers being submitted at market value, only for the bank to decline them.

There should be a local Realtors association in the Inland Empire. If you call them, you could ask for statistics on closed transactions for the "short sale" specialists in your area. They may not be able to provide that info broken down by short sales but it's definitely worth asking.

I do not keep my home looking like a museum. Agents expect it to be neat & tidy all the time. It definitely has the "lived in, cluttered" look in every room of the house. Don't know if I could go that route myself. Sounds like a great strategy that could buy you more time. A lot can happen between now & July. Maybe if you keep the place a real mess, nobody will be interested in buying it & you could stay even longer? ha ha Hmmm.....now you got me thinking!

[BabyBlue]

Freedomwon, Very funny....clutter (organized clutter) is the way real people live I think. I am always uncomfortable in someone's home when it looks like it is prepped for Architectural Digest.

I talked with "my" Realtor today. He expects generally that a buyer in my area will be found in 2-3 weeks for my house. BUT then the negotiation process can take 2-3 months on top of that on average and finally there is a 30-45 day escrow.

Since I have dogs there is no way I can keep my house in Goodhousekeeping order nor do I care to. I don't have the will or the energy. I will keep it reasonably clean (I hate housekeeping) and I will put a lot of things in storage. Anyway that means another 3-4 months in the house and money to save to move somewhere.

He has done four short sales with Wells Fargo in 2010 and many with other banks. He was rated highly in Zillow so I think I am OK. I also asked if we could take out any wording from the sales contract that makes me sign away my right to sue them in the future.

Actually I am already part of a class action suit against Wells Fargo.

I have also asked that WF be required to report to the credit agencies in the least detrimental way.

I will still drive them to the gates of Hell through sheer power of thought and prayer.

[minders]

CHensley,
Did you get a response to your post? Wondering if you went ahead with a short sale or if you got a loan modification

Moe,

We, like many, are in the boat where our incomes have been greatly impacted and we are seeking some help to protect the last vestiges of cash/safety net our family has accumulated.

I'll be brief with the facts. We purchased in Orlando, FL during 2007 for $515K and put down enough cash to result in a note of $380k. We have paid and are paying timely but our incomes have changed. We have tried to refinance but the home appraises for $220k or worse, comparable in the neighborhood result in a value of $200k.

I am going to proceed down the path of hopefully a loan modification but a short sale could allow us to stay in the home. I have a family member who would buy the home and then rent it to us i.e. they would obviously have to get in at the right price. I've been reading the post and it seems obvious that collusion could be construed but if they pay market price, which would make the note ~50% or more (or our new rent) of what our current mortgage payment. We are not people to scurry from our debts but with $50k in safety cash, which would get eaten up pretty quickly, we are about to go "on a burn" given our new incomes.

Any corporation would protect their assets....I am trying to protect ours. We have been abysmally affected by the foreclosures/walk aways in our neighborhood (~50%). Would you have any advice....to effectively negotiate a short sale w/Citi to my family or how to loan mod this so it fits with our income.

Not desperate yet...trying to be preemptive....this could get bad if we need to relocate to for better jobs....Please advise...

[BabyBlue]

Wow, I just listed my house as a short sale with a very reputable Realtor/Broker a few days ago. He sent a broker he knows to see it even before it was ready. That person took a lot of pictures. This morning my Realtor called me to say the person's client has made an offer. It should be very attractive to the evil bank (WF) because it covers what I owe. I am stunned. One person came to see my house and they have made an offer. I have accepted it.

I do meet all of the criteria Moe mentioned. I was very careful about selecting a realtor in the end. My realtor has won lots of awards, has a strong record of community service, is very experienced and knows the area very well. I did also check with the CA Dept of Realtors and the BBB. He also listed the house for a lot more than I expected, maybe because he knew any offer would be lower.

Do your homework, interview people and see how you feel about them. Get everything in writing and read all of it before you sign anything. Get copies right then.

I have lost this battle really, but end it with a shread of dignity. They are getting away with mortgage fraud for now. But I am not finished. As I said once before this is one battle. The war goes on. I will not relinquish my right to sue which they are probably not too concerned about because they know most people cannot afford counsel to defend against their fraud.

I do believe we are going to see meaningful change in the way our government interacts with banks despite all the very rational arguments that suggest otherwise. Maybe it is a matter of faith. It is what I choose to believe and like prayer it is powerful stuff.

[TomEason]

BabyBlue
I'm glad you got what you asked for, and are happy thus far with your RE broker. Good luck in the closing of your SS deal, and in finding your new living accommodations.

[HopingtoFind]

Wow, I just listed my house as a short sale with a very reputable Realtor/Broker a few days ago. He sent a broker he knows to see it even before it was ready. That person took a lot of pictures. This morning my Realtor called me to say the person's client has made an offer. It should be very attractive to the evil bank (WF) because it covers what I owe. I am stunned. One person came to see my house and they have made an offer. I have accepted it.

I do meet all of the criteria Moe mentioned. I was very careful about selecting a realtor in the end. My realtor has won lots of awards, has a strong record of community service, is very experienced and knows the area very well. I did also check with the CA Dept of Realtors and the BBB. He also listed the house for a lot more than I expected, maybe because he knew any offer would be lower.

Do your homework, interview people and see how you feel about them. Get everything in writing and read all of it before you sign anything. Get copies right then.

I have lost this battle really, but end it with a shread of dignity. They are getting away with mortgage fraud for now. But I am not finished. As I said once before this is one battle. The war goes on. I will not relinquish my right to sue which they are probably not too concerned about because they know most people cannot afford counsel to defend against their fraud.

I do believe we are going to see meaningful change in the way our government interacts with banks despite all the very rational arguments that suggest otherwise. Maybe it is a matter of faith. It is what I choose to believe and like prayer it is powerful stuff.

I was just reading your post and thinking, it is great that you got an offer so fast and one that actually will payoff your loan with WF, but one question came to mind. If this offer can fully pay off your loan then all you need to come up with is Realtor commission + closing costs. And if that is the case could you have listed it a little higher and avoided short sale all together.
Maybe I am off on this and you have a 2nd or something...

[BabyBlue]

I do not have a second and I understand your argument and did think about that BUT I really do not think I could have asked for more in this market given the comps and present economic reality. I think I got lucky and someone just fell in love with my house. There may have been some divine intervention as well. It was very close and it irks me that the bank is not losing a dime on this one, yet will still report to credit agencies "sold for less than owed". How does one fight this evil monster. More banks are going to fail. I think Wells Fargo, despite their size, is one of them. Also, as banks take over other banks...at some point does it not become monopolistic and therefore...rather illegal?

[iowagirl]

Anyone familiar with purchasing another home after a short sale? Is there any sort of financing available for this?

[castaic_home]

Hi All,

I just joined this forum and wondering if I can get advice on my current condition. we purchased the house in Los Angeles around 2005 and due to job we had to move to San Francisco around 2008, Since then I was renting the home even though the rent is less than my current mortgage payments in the hope of returning back to LA. We are current on our payments on the house in LA and we just purchased a new house in SF as we decided to stay in SF and not move back to LA. my purchase price for my house in LA is 590k and current worth is 420k, The amount I owe from 2 loans is around 470k. Iam not able to get this refinanced as Chase says its a rental property. My only option is to do a short sale. Do I need to miss couple of payments to even qualify for the short sale and us buying a new home recently have any bearing on the short sale decision ?

thanks

[Cat Damiano]

Hi castaic_home,


Welcome to the forum and thank you for joining............

All of the information regarding a short sale with Chase and what it entails can be found here:

https://www.chase.com/chf/mortgage/hrm_shortsale


If the loans are purchase money then California Code 580b may apply to your situation and if you were unable to sell the property and it went to foreclosure, the lender may not be able to go after you for any deficiency. Google this code to see if it may apply and you may also want to consult with a foreclosure attorney just to be sure.

Here is an excerpt from that Code.

California Code of Civil Procedure Section 580b - California Attorney Resources - California Laws

[HopingtoFind]

Hi All,

I just joined this forum and wondering if I can get advice on my current condition. we purchased the house in Los Angeles around 2005 and due to job we had to move to San Francisco around 2008, Since then I was renting the home even though the rent is less than my current mortgage payments in the hope of returning back to LA. We are current on our payments on the house in LA and we just purchased a new house in SF as we decided to stay in SF and not move back to LA. my purchase price for my house in LA is 590k and current worth is 420k, The amount I owe from 2 loans is around 470k. Iam not able to get this refinanced as Chase says its a rental property. My only option is to do a short sale. Do I need to miss couple of payments to even qualify for the short sale and us buying a new home recently have any bearing on the short sale decision ?

thanks

It sounds like your loans might be purchase money, in which case they are non-recourse and Chase would not be able to go after you for deficiency. If that is the case I would strongly suggest that you not go the Short Sale route but rather keep it as a rental generating cash flow as long as possible while letting the house go into foreclosure.

Take a look at this thread for more information on how to accomplish that:
http://www.loansafe.org/forum/chase-...heel-game.html

[TomEason]

castaic_home

Thanks for your post. I strongly recommend you follow HopingtoFind's recommendation. Immediately stop making both loan payments and the property tax payments on your LA house. Rent your LA house out ASAP. Yes, eventually the 1st will FC, but, as FC timelines are often very long, you'll likely enjoy the rental income for a long time. Forget about a SS - it will do nothing for you.

Positive cash flow rental income is both fun and easy to achieve when the owner is no longer paying loans and other costs. Enjoy this income stream while you have the opportunity. Good luck!

[honeybaked]

So confussed on trying to complete short sale with M and I in arizona. I need a good CPA experienced with all of this. Do u have to be in house 2 years to not be taxed. Does anyone know good CPA in arizona??
Thanks

[Cat Damiano]

honeybaked,

I already posted this to you in the thread that you started with the same question yesterday.

We would be unable to refer you to any one specific CPA, you may want to ask friends or family members for a referral, especially self employed or business owners would probably know some good ones.

[shayl475]

It is my understanding that financing is not available for 2-7 years after a short sale. That may all change in the future though. Have you checked to see if you qualify to purchase another home first? Check out some of the "Buy and Bail" threads on these forums for mo0re information on this.

[sonickitty]

Even though I live in CA, a non-recourse state, my loan has been refinanced. If this makes it a recourse loan, is there something in a short sale contract where we can get the bank to agree not to persue coming after you for the forgiven debt?

[TomEason]

Even though I live in CA, a non-recourse state, my loan has been refinanced. If this makes it a recourse loan, is there something in a short sale contract where we can get the bank to agree not to persue coming after you for the forgiven debt?

Although it may have been refied, your 1st lender still cannot pursue you for any deficiency, per CCP Section 580(b).