Answers to Questions About Using Short Sale to Stop Foreclosure in Virginia Beach & Norfolk

July 22, 2010 - PRLog -- People have a lot of questions about what happens and what’s required with short sales.
Here’s the answers to a few of those:

1.   Can I stay in my house while the short sale is going on?
Yes you can.  The average short sale takes 3-6 months and largely depends on the lender.  Some go faster and some slower -- some have better systems and personnel set up and some don't.  So, while we’re waiting for the short sale to be approved, you may as well stay there because at this point you are likely living “rent-free”.  However, you will need to make your house available and accessible to various people involved in the short sale process (realtor, appraiser, contractor, other interested parties) and you will need to move out when your house is sold.

2.   Can I do a short sale if I have 2, 3 or more loans and liens on my house?
Again, yes you can.  In fact, sometimes it is easier to have a successful short sale with multiple loans or liens. Why? Because all of the loans and liens who are Not in 1st place realize that they will likely get $0, zip, nada if the 1st mortgage forecloses. So, often, they are much more open to negotiating once they are shown the light.  The trick is getting through the thick red tape and nonsense for them to see the light.

3.   What about IRS or home owner association or condo or other liens?
Much to people’s surprise, and contrary to some bad information out there, these liens can also be often negotiated away or down.  They are definitely not a show-stopper.

4.   Do I have to be behind on my mortgage payments?
Well, it is often Easier to make the case for a short sale if you have missed several mortgage payments, but it is not necessary.  That's because the bank will already be aware of the financial difficulty you are facing if the payments are behind; whereas, a current loan suddenly being in a short sale can be a surprise to them.  If your payments are current and you must sell but can’t sell for what’s owed, the short sale will focus on the current market value of your house and the bank’s future losses if they don’t accept your short sale.  With a delinquent loan, the short sale can more easily also incorporate the storyline of a long-term financial hardship and lack of available resources.

5. Well then, should I keep paying my mortgage?
Whoo Whee… that’s a loaded question.…and I can’t tell you to stop paying...
Here are some things to consider:
If your house is foreclosed on or if your short sale is accepted, you get no $$$ back.  That's the rule.  Also, if you look forward and can see that you will soon run out of all available cash, then the question you might have to ask yourself is, “do I want to be able to pay for food and electricity?”
However, if the bank can see you have $$$ or Should have $$$ (eg. there’s no apparent hardship) and you’re here in Virginia, the bank Can choose to pursue you for a deficiency judgment if they Foreclose and they can also reserve that right in a short sale too.  If they do not see a legitimate reason for the stopped payments, they may be more likely to sue for that deficiency.  In that case, the missed payments and penalties would add to the amount you owe them.

6. But what happens if you do stop paying?
The good news is there is no Debtor’s Prison anymore.  So, you don’t go to jail simply for not making your payments.  And you won’t have the Banker come banging on your door demanding payment like a Landlord.  You also have some time – it’s not like an Eviction with a 5-Day Pay or Quit letter.  These days you likely have several weeks or even months before Foreclosure.  It’s not uncommon to hear of people who stayed in their house for up to or even beyond a year after making their last payment.  Keep in mind, though, that all of those missed payments and penalties and interest increased the deficiency amount.

You Will get letters in the mail and likely even some phone calls.  If you have a knowledgeable short sale expert helping you with your house, they can help you decipher that mail and re-direct or minimize those phone calls.


Disclaimer
It’s unfortunate that I have to do this, but apparently it’s necessary… I am not a lawyer/doctor/CPA/guru nor do I claim to be.  The thoughts here are not legal/financial/tax/dietary/spiritual/relationship/or anything advice. These are only my opinions so do your own further research and draw your own conclusions.

However, if you would like further information on The Fastest Ways to Stop Foreclosure, get the Free Report at http://www.StopForeclosureWithDave.com .
We are professional real estate investors operating in the Virginia Beach and Norfolk and surrounding areas of Virginia and more information is available at http://www.EstelProperties.com .
But if you quickly need to stop foreclosure or need more information about short sale in Virginia Beach or Norfolk or nearby, go to http://www.StopForeclosureWithDave.com and get the Free Report.

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We buy houses in Virginia Beach, Norfolk, Chesapeake, Portsmouth -- the Tidewater or Hampton Roads area of Virginia. We stop foreclosure via short sale and help the distressed home owner sell quickly to avoid foreclosure and deficiency judgment.