What do I need to do in order to ask for a short sale for our property?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What do I need to do in order to ask for a short sale for our property?
We have moved to another city and have had our old home on the market for 3 years. We have done the “right thing” by paying 2 mortgages, but in doing so, have depleted our savings and cannot keep on doing this much longer. Is it possible to do a short sale on our old home without the bank coming after our current home? We have called the bank to ask what our options are, but since we haven’t missed a payment on the house, they will only offer to refinance, which we can’t afford. We are also afraid what a short sale may mean for our credit.
Asked on May 19, 2009 under Real Estate Law, Ohio
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I suggest talking to the short sale department and indicating that you are no longer able to continue to make payments. A short sale is not automatic - its up to the bank. If you miss payments then your credit will suffer big time! However, if you do not care, then stop making payments and call the bank to do a short sale. You can then negotiate with the bank that no deficiency will be sought - i.e. the diference in the amount owed and the sale price. You shold be able to negotiate this and avoid having the bank not go after your other house. I suggest hiring a lawyer to put the short sale package together as you will need to disclose certain financials.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.