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Difference between short sale and foreclosure in 13?

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    Difference between short sale and foreclosure in 13?

    Hi,
    I am in one of those weird situations -- I lost my job, and can't make my mortgage payments. I have missed some now. I put my house on the market but can't get enough from a sale to pay off both the first and the second. It's like $6K short.

    The realtor is working with someone who has an offer in on it, and he is telling me I need to make a payment. Duh, if I could make payments, I wouldn't be behind and trying to sell it. I think he is worried the first or second lien holders will move to foreclose and he won't get any commission.

    So, what's the difference, in this instance, if I do a short sale or if I let it be foreclosed upon? I am almost all the way through my 13 -- just one year left! It is a 58 month plan. What happens to the money the bank is out in either case -- a short sale or a foreclosure? How is that handled in my 13?

    Help! I have called my lawyer many times but she is not returning my call. The one time she did speak to me, she advised me to try for the short sale, which is why I have authorized the realtor guy to talk with my banks and all that -- but she "would have to check into" what happens to the money that the bank is not paid.

    I figured someone here would know or has been through something like this before. My kids were living in that house and I have been staying with my boyfriend, but now they are moving to an apartment -- so no one needs the house anymore in addition to the house not being affordable.

    Thanks for any insight.

    Cat

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