Anthony Robaina

Make sure you have everything that the lender requires (contract, listing agreement, hardship, financials, comps, repair estimates, etc...) and send all together at once. After they receive your package, it gets assigned to a processor. They will schedule a BPO. As Dave said, find out who has the file and call them directly. You also have to be patient as this could take a while since banks have so many files that they are working on. Also, keep on top of what is going on since most likely, they will not return your calls. You have to put some pressure on some of these lenders to get them to move faster.

I have not had any approved in 5-7 days...if yours does, than thats great. I normally see several weeks to a few months before the offer is approved. I have seen lenders take a couple of weeks just to enter the info into their system. It can get frustrating, but hang in there.

Feel free to contact me if you have any other questions or need more help on this at anthony.robaina@hotmail.com

Good Luck! - Wed Apr 9 2008, 12:59

The lender can seek a deficiency judgment against you just as any other judgment. Deficiency judgments are discretionary with the court, based upon principles of equity. Lenders will not want to absorb the loss and the difference is not their problem once they foreclose on the home. If the seller is not responsible for the difference between the sale price and what is owed, everyone would let their lenders foreclose on the home since they will not be sued for the difference. Your best option might be to short sale the home. Either way, you will not net anything from the sale of the home, but you get the lender to agree not to seek a deficiency judgment for the difference.

Just like any other judgment, the lender can request that the court enter a judgment for the shortage amount. You can look it up, but your best bet is to contact a real estate attorney for advice.

Good Luck! - Wed Apr 9 2008, 02:41

You can either talk to the lender and work something out or do a short sale. If they foreclose on the home, chances are they will not get enough from the sale to satisfy your loan. They will seek a deficiency judgment against you for the difference. A foreclosure is devasting to your credit and you will not be able to buy another home. A short sale hurts, but not as bad as a foreclosure.

In a short sale, lenders will not seek a deficiency judgment for the remaining debt. Just make sure they put it in writing. They will, however, report it to the IRS. IRS does consider that as income and you will be taxed since it is considered as an investment property. It is best to speak to a tax consultant on this issue and/or attorney.

If you have any questions or concerns, please feel free to email me at anthony.robaina@hotmail.com.

Good Luck! - Wed Apr 9 2008, 01:52

Hi,

As Ms. Wenzel said before, you should contact your agents office and talk to her broker. Your agent might not be familiar with short sales. Since you have a listing agreement, your broker is entitled to a commission. If you feel that your agent is uncooperative and are unhappy, you can withdraw your listing and re-list with someone else or do it yourself. However, I wouldn't suggest doing it yourself if you are not very familiar with the short sale process and requirements.

Also, in a short sale, you don't receive anything from the sale of the property. Before approving a short sale, banks need to see a HUD-1 showing how much they will net and that the seller is not receiving anything from the deal. Banks will sign off on a final HUD-1 at closing which shows the seller netting zero dollars. Lenders also pay your broker(s) their commission. They decide what percentage they will pay. Normally, what I have seen, they pay 5% for two realors and 3% for one, although those numbers can vary depending on the lender.

If you have any questions or concerns, please feel free to email me at anthony.robaina@hotmail.com.

Good Luck! - Wed Apr 9 2008, 01:33