Short sale vs foreclosure

Gophernut · 08-05-2011, 07:17 AM

Well to try and supply more info, I figure we are about 40K upside down. Don't know what the total will be with closing costs, commissions, etc. I would guess around 60K. We are current, and our bank will not help us unless we are not current. It feels sort of counter-intuitive to talk to your lender about help, and they suggest not paying them.??? We do have cars that are both 2008 and we are current on all bills. No credit card debt, some medical debt, but manageable. Just have too much house for one person to handle. We at one point had almost 100k equity, but now it's gone the way of the housing market. Negative. Thanks for the info so far, and any other thoughts are very welcome.

floydpink · 08-05-2011, 08:27 AM

I just had dinner with a good friend who is an executive at a very large bank with lots of knowlege.

According to him, the average time for a bank to move forward and complete a foreclosure is 3 years, which essentially means you can stay rent free for 3 years, not considering the implications regarding credit and the uncertainty of eviction, not to mention hounding from bill collectors.

He says, locally, it is a longer period due to the amount of foreclosures in our area.

If nothing else, it buys you plenty of time to decide, although your credit will suffer.

Starz26 · 08-05-2011, 09:25 AM

Quote:

Originally Posted by Gophernut

It feels sort of counter-intuitive to talk to your lender about help, and they suggest not paying them.??? .

This

My buddy just went through the same thing. He was current but struggling. So he did what they said, stopped paying, House was in foreclosure and sheriff sale was getting close but he finally got a loan modification. Ruined his credit though.

If you do go this route, do what he did and save the monthly house payment, that way if the loan mod does not come through in time, you can catch up and avoid foreclosure.....

Best wishes

08-05-2011, 07:17 AM	#1
Gophernut Have My Own Room Join Date: Oct 2008 First Name: Steve Location: Hudson, WI Posts: 1,661 Trading: (15)	Re: Short sale vs foreclosure Well to try and supply more info, I figure we are about 40K upside down. Don't know what the total will be with closing costs, commissions, etc. I would guess around 60K. We are current, and our bank will not help us unless we are not current. It feels sort of counter-intuitive to talk to your lender about help, and they suggest not paying them.??? We do have cars that are both 2008 and we are current on all bills. No credit card debt, some medical debt, but manageable. Just have too much house for one person to handle. We at one point had almost 100k equity, but now it's gone the way of the housing market. Negative. Thanks for the info so far, and any other thoughts are very welcome. __________________ "My reading of history convinces me that most bad government results from too much government." Thomas Jefferson

08-05-2011, 08:27 AM	#2
floydpink crazy diamond Join Date: Oct 2008 First Name: Pete Location: Orlando Posts: 1,955 Trading: (17)	Re: Short sale vs foreclosure I just had dinner with a good friend who is an executive at a very large bank with lots of knowlege. According to him, the average time for a bank to move forward and complete a foreclosure is 3 years, which essentially means you can stay rent free for 3 years, not considering the implications regarding credit and the uncertainty of eviction, not to mention hounding from bill collectors. He says, locally, it is a longer period due to the amount of foreclosures in our area. If nothing else, it buys you plenty of time to decide, although your credit will suffer. __________________ "If we weren't all crazy we would go insane"