Plez explain a short sale

[denisejohn65]

Could someone plez explain a short sale as easy as they can???

[justbroke]

A short sale is when the bank(s) which holds your mortgage(s), allows you to sell it to a buyer, for less than what you owe the bank(s). Since your are "short" in the amount necessary to pass clean title to the buyer, the bank(s) agree to the sale and allow the property to be sold for less than you owe.

Things to note... a.) very few short sales are actually approved by banks -- although this trend may get better with banks getting more desperate, b.) always work with a Realtor who understands how short sales work, c.) Realtors who are active in the listing/sale of the property almost always have to agree to reduced commission, and. d.) while not as bad as a foreclosure, there is a ding on your credit (I believe it will ilst as "settled for less than the full amount" or somesuch).

I'll stop there.

[denisejohn65]

Now when could that be done? Is it done after a discharge? Do you know if you will be left with anything to pay....like taxes and such? Would you do a forclosure or a short sale if you could. I 'm not reaffirming on the condo.

[justbroke]

Now when could that be done? Is it done after a discharge? Do you know if you will be left with anything to pay....like taxes and such? Would you do a forclosure or a short sale if you could. I 'm not reaffirming on the condo.

If you discharged the debt in a Chapter 7 bankruptcy, why would you even worry about a short sale? You are no longer personally responsible for the mortgage, so you can walk away.

You can do a short sale at almost anytime (except during the pendancy of a Bankruptcy case in which you'd need permission from the Trustee).

Property taxes attach to the property itself, so if you're getting rid of it (surrendering it), then you don't need to worry about any property taxes.

If you're not reaffirming your condo, just walk. You don't have to do anything. it will show up as Included In Bankruptcy (IIB) on your credit report, even though the lender/bank needs to go through the entire foreclosure process.

[denisejohn65]

Ok thanks. I had another ? At first on my paper wk I was going to reaffirm on condo...but had paralegal change it. He said he did.... what if he didn't? Does it even matter?

[HHM]

Short sales's are tough if there is also property tax owed. A short sale is still a "sale" of real estate, which means you have to be able to pass clear title. Someone would need to pay the past due property tax in order to close the deal.

As perviously mentioned, since you filed chapter 7, there really is no benefit to you of doing a short sale (and in general, there really is no benefit to a short sale in any circumstance).

The statement of intention in the BK forms don't really matter, it really only is a statement of "intent", you don't actually have to follow-thru.

[denisejohn65]

Ok...I go see my Lawyer Tue to finish up the papers for the hearing 341.I have a lot of questions for him. I'm sure he will charge me. I'm just nervous....