Short Sale after Discharged and Closed Chapter 7

[bates888]

Hello!
I am located in AZ. I have a first and a second loan on the property. I am about 25 months behind on the mortgage. The current trustee sale date is 3/26/2012. My chapter 7 is discharged and closed as of 9/2011. Last night Bank of America (the first mortgage) contacted me and sent me something about a Cooperative Short Sale Agreement. The form basically asks me to participate in the short sale program.

Here are my thoughts:
I have a friend living in the house. If I can get a couple extra months of free rent for her, that'd be nice. If the house doesn't sell and they force me into a Deed-In-Lieu, what does that do to the discharged debt? Give me your thoughts, comments and concerns!



Here are the bullet points from the fax I received:
*If you successfully complete a cooperative short sale, you will sell your house and will be required to vacate the property.
*You are financially responsible for all maintenance and expenses on the property until it is sold.
*Financial hardship and inability to afford the payments on the property are needed to qualify for a cooperative short sale.
*The short sale must be "at arms length".
*Bank of America will use proceeds from the sale to pay off the balance of your loan aill work together with your listing agent on your behalf to faciliate the sale process.
*We may begin or continue the foreclosure process while we review your request. We will suspend any forclosure sale date until the expiration date of the signed Acknowledgment of Interest or the date of closing of an approved short sale, whichever is later, as long as you continue to abide by the terms and conditions of the agreement.
*If the cooperative short sale is unsuccessful, Bank of America may offer you the opportunity to participate in a deed-in-lieu of foreclosure program.
*Once your short sale is completed, Bank of America will report to the major credit reporting bureaus that your loan was completed as a short sale.
Benefits of a successful cooperative short sale:
*If the cooperative short sale is successful, Bank of America will pay you $2500 for moving, relocation, or rental expenses.
*If the cooperative short sale is successful, Bank of America will not pursue deficiency balance on your loan.
*If the cooperative short sale is successful, Bank of America will not foreclose on your home.

[dspii]

It is an option for the hearty. It does have some benefits, mostly for realtors and the Bank. The short sale or Deed in Lieu just gets the house out of your name a little faster, although the deed will be a public record. The three options your facing are the only ones available and each has their benefits....you will find volumes of information on this site and the web.....good luck.

[pathfinders]

the 2 below are a joke:

If the cooperative short sale is successful, Bank of America will not pursue deficiency balance on your loan. ( chaptr 7 can not collect for the deficiency) you are good to go



*If the cooperative short sale is successful, Bank of America will not foreclose on your home. ( it will show on Pubic record, if you are looking to buy again soon it is 3 years for FHA after the home is out of your name Period.......


so if you wait for them to foreclose not sure if you are Judical or not, but it could take 2 years for them to take the house back in that example it will be 5 yars until you can get a FHA loan, not if you have or want to put down 20%+ that may get you a conventional loan, So bottom line do not do them any Favors, the 2500.. for moving out... why do that if yu stay for a few months resnt free there is your 2500. you need to figure out what you 2,5 ,10 year plan and only do what is in your best interest. you have a reset now with the chapter 7. use it to it's fullest.


PS we did a DIL. took us a good 9 months for the bank to to take it they asked us for DOC's told them NO we did it to just get the Home out of our name , we moved on and our clock has started ticking now towards the 3 year mark.


Just my 2 cents.

[pathfinders]

oh if the home was vacant, yu would have no Utilities at all, you are responible for HOA, and Insurance but the back has probley put INS on the home,

Sorry I just hate BOA, bunch of ^^%%$%^^

[shark66]

Unless your second mortgage is with BOA as well, the short sale is unlikely to go through - ever.

That said, if you feel that you could gain more time by pulling their chain in this manner, by all means do so. That's the only thing you might get out of it - time.

And we all know what time equals to...

Good luck to us all.

[bates888]

Pathfinders: did you do your DIL after your BK case was discharged?

[mscru28]

I sold my properties and did a DIL with Bofa after my bk discharge. The bank was taking too long to foreclosure and I wanted to start my 3 year clock. So I put my homes on the market and completed short sales on 2 of them and a DIL on the third. One house had a first with Citimortgage and a second with Chase and I was able to get Chase to agree to 20% of what I owed and we got the home sold. It wasn't easy but I had a good realtor. The third was on the market for 1 year and keep falling out of escrow and BofA agreed to do a DIL on it. An experienced short sale realtor is very useful and helpful. I paid HOA fees when necessary but I did not make any repairs. Clock is now ticking. Yeah.