Short Sale or Possible cash for keys in AZ?

[maffy]

I was discharged from my BK last year and the bank is finally moving forward on my home here in AZ foreclosure date set for July.

I'd love someones opinion / experience:
I thought I would be try to qualify for the HAFA short sale if we can get one started before the foreclosure date. Or do most banks offer cash for keys? and would that be a better way to move forward? (and get out of this house that I really can't afford). I have a private investor and the loan servicer has been a nightmare to work with - finally got turned down for a loan mod after 7 months...

Any thoughts would be appreciated!

[Drazil65]

Not sure how long it takes to actually complete a foreclosure in your state but why do the banks work for them? I mean you have zero obligation at tis point to pay back the debt and with a short sale you spend alot of time jumping through many, many hoops for the bank. They will repeatedly ask you for updated financial info to be faxed over and the whole thing is a PITA. Then you have the open houses and the disruption to your life constantly. The bank would love for you to do all that work for them. If you are trying to buy time there are other ways to prolong the process if that is easier for you and check to see if there is a redemption period for after the sale, you may automatically have a longer period. Good Luck!

[HHM]

AZ was one of the harder hit areas for housing, so cash for keys is not happening there as much as other areas. If you already had one short sale fall through, unlikely you will get another, HAFA or not.

Do you still live in the home? If yes, just stay there and live rent free. If no, is there an HOA. If there is an HOA and you don't live there, then there is some benefit to trying for the short sale, otherwise, I wouldn't waste the time. You can try to do a deed in lieu (cash for keys), but if there is more than one mortgage, that option is pretty much dead in the water.

[maffy]

AZ was one of the harder hit areas for housing, so cash for keys is not happening there as much as other areas. If you already had one short sale fall through, unlikely you will get another, HAFA or not.

Do you still live in the home? If yes, just stay there and live rent free. If no, is there an HOA. If there is an HOA and you don't live there, then there is some benefit to trying for the short sale, otherwise, I wouldn't waste the time. You can try to do a deed in lieu (cash for keys), but if there is more than one mortgage, that option is pretty much dead in the water.

I have exhausted all my options up to this point. Yes, I do still live in the home and there is only one loan. The foreclosure date is set for first part of July (less than two months away) - what a lovely time of year to move in AZ

I have heard stories back and forth about C4K - some that it's really hard to get here in AZ. I have a realtor who specializes in short sales and they already have an offer and yes, it is a beautiful house - so I thought that if the bank will allow us to go thru the Hafa short sale process then I would possibly get a few more months before I have to move and also be eligible of the $3000 moving incentive from Hafa. Yes - I do have an HOA too, but all is current with them so no worries, thank goodness.

I guess either way I'm just going to see what happens. But I only want to do the Hafa short sale to be sure that I don't get stuck for a deficiency...

HHM do you know if "any" short sale can be written so that a deficiency doesn't apply to the sale?

[LadyInTheRed]

But I only want to do the Hafa short sale to be sure that I don't get stuck for a deficiency...

HHM do you know if "any" short sale can be written so that a deficiency doesn't apply to the sale?

If you did not reaffirm the mortgage and the debt was discharged in your bankruptcy, they can't come after you for a deficiency whether they foreclose or do a short sale.

[SMinGA2]

If you did not reaffirm, then the debt was discharged and you have no obligation. Except for the HOA - you're responsible for that (post filing, its a new bill) as long as the home is in your name.

[maffy]

THANKS to you all for your responses! Have gotten all the paperwork in, so will see if the bank will be willing to even deal in regards to the short sale. Keep your fingers crossed that this will go smoothly ;)

[btbeme]

THANKS to you all for your responses! Have gotten all the paperwork in, so will see if the bank will be willing to even deal in regards to the short sale. Keep your fingers crossed that this will go smoothly ;)

Maffy, trying to do a short sale on your own is a major pain in the butt. Really. I am very much a do-it-yourselfer, but the short sale process, and all of its documentation, timetables, and left turns make it very difficult to navigate.

That said, I like the HAFA short sale idea - get paid $3000 to leave. Just find a GREAT short sale specialist or investment company to do the work for you. You will still need to commit to getting the paperwork filled out and updated numerous times - often with very little time to spare - but it can be done. My realtor worked his butt off to make it happen. I referred him to several friends, and so far they have all been pleased.

If you are not up to making a full-time commitment to making the process happen, don't bother. Walk away.