Stating the process, with GMAC

[ShadowecR]

Hello everyone,

Thanks you for such a great site!!

My situation is as follows:

Bought house for 92K year and a half ago. currently owe 90k.

The area comps show the house worth about 75K.

We are planning to move out of state in late summer of 09'. Thus, setting aside money to replace our car and have moving expensies.

This means that we can only pay 500.00 of our 840.00 monthly payment for the next 8 months (or until we sell).

We (with agents help) listed the house for our payoff plus fees. with the plan of reducing that every 30days till we get an offer or until fair martket value is reached.

QUESTIONS:

1.) in responce to our letter of intent to GMAC, we recieved a list of others things they need. We've sent them everthing asked for except HUD forms 90036 and 90038. Can someone give me insight as to why GMAC is asking for that and do you thing it's something we should sign and send in?

2.)Would it be better to keep the morgage current than be s.o.l. when it comes time to move? Or would it be better to just do what we have to do? What I mean by "better" is asking what it will mean, either way for the over all process.

3.)As the next months roll on, is there any advise anyone would give for me to do the right things at the right times as far as being ready each of the next steps?

Thank you all for listening.

~E

P.S. We're all in this together

[Moe Bedard]

E...........hopefully you have hired an agent that has done short sales before many many times. Walking you through the steps of what a short sale is all about and what to expect is part of their job. Also negotiating any deficiency that my arise so that you may not have to sign a promissory note would also be a part of that job.

This section has information that will help you in understanding how a short sale works in the threads at the top of the section.......with the tips for short sales..........

Good Luck!

Let us know how it goes...........

[ShadowecR]

Thanks for the advise. I think our agent has the know how. But I probably should ask how many short sales they've done? yes?

So far I have read many of the posts in this section and many of them have been hopeful. (thank you very much!).

I'll keep updating as this progresses.

~E

Any other comments out there?

---Dose anyone have any insight on the two HUD forms I mentioned? I think my agent may not have a lot of experince with them. (could be a FHA loan thing) I'm not sure.

---Dose anyone know about what will probably/might happen if the lender "thinks" we can afford to pay the full mortgage and just won't.

[Moe Bedard]

You would need to fill out the HUD forms as a part of the process of approving the short sale.............they are a requirement on an FHA loan, they want to make sure that you have taken all the necessary steps and looked into all options to keep your home before they may approve a short sale.

http://www.hud.gov/offices/adm/hudcl...iles/90036.pdf

http://www.hud.gov/offices/adm/hudcl...iles/90038.pdf



I am not sure what you are asking here.......if they know that you are able to afford your house...............there is not reason to approve a short sale...............FHA loans are insured against default............so what they will do in the process is look at the loan amount owed and the current value of the property.........and see which route, short sale or foreclosure, will net them the most.

[ShadowecR]

Thanks ***,

After looking around more, I see that these two forms are required with an FHA loan being aproved for short sale.

What I want to make sure of, is that me signing these forms has nothing to do with me saying "I agree to being responsible for the difference." (like in a promissory note).

As far as the other, no we can't afford both the full mortgage and saving for a new car and moving expenses. we can only afford 500. of the full 850. monthly payment in order to ready for our out-of-state relocation. I guess my question really is, how do you think the lender (GMAC) will "treat/handle" our situation? Will they fight us on it, or will them accept the fact that we're moving, thus that money is allocated elsewhere, and be willing to accept a short sale offer? What are your thoughts.

Thanks for all your help and insight...

~E

[Moe Bedard]

I am sorry............that is something that I don't have an answer for...........you will just have to see what the outcome will be.

[ShadowecR]

Update:

Well, so far no offers... We just had our first "price reduction" We're now priced at 5,000 less than what we owe. crossing our fingers!

[ShadowecR]

ok so a little updating...

We now have an offer and it's in the hands of the bank. so far we havn't head much unless you count the letters telling us how much it will cost to get our loan up to date. Than just the other day a letter saying that if we don't get the loan up to date by the end of the week "we could loss our house" (I think it's just one dept. not knowning what the other is doing) (as well as them being required to communicate such things) hopfully that's all it is anyway.

Do to how poor our martket is our offer relects only a little less than half of what we owe! We are very concerned that the bank won't go for it than where will we be?!? As we are moving out of state this summer/fall we can't just sit there. We don't want to go through forecloser but what other choice do we have? (sorry for getting emotional and venting) anyway so that is where we are so far. On a lighter note, the bank does seem to be working with us so for, send an apriser out and everything. So now we're down to the crunch time, do or die so speak I guess. I trully hope they come through for us. I guess we'll see....

Any feedback is always helpful

~E