Short Sale Prior To Foreclosure

[Intears]

I'll try to make this short and to the point. Not sure where to post so I've posted in BK, Mortgage & Foreclosure Forums.

 

July 2008 I file BK Chapter 7 and it includes my house. October/November 2008 I was hoping to try and save it but that will not work out. November 2008 house goes back on the market (foreclosure proceedings won't be done until early 2009). I get an offer on the house, short sale. Owe $328,000 to GMAC, priced to sell at 299,000. Offer is $279,000 to include $15,000 in closing costs and $399 warranty. Agent thinks I should go for it just to see what GMAC says. However, I tell the agent, and if GMAC approves, where am I going to get $15,000 inclosing. She says well, "you know GMAC is not going to approve but I'm trying find out what it is they will accept." My thought is, if they do approve, I'm would be liable to a binding contract and I would have to come up with the $15,000. Does this sound right? Thanks for your help.

[SportsNut]

The purchase contract should be written so that the 15K cc and all other fees are coming from the purchase price, with GMAC receiving the net proceeds. Meaning you pay NOTHING out of pocket. The agent should be submitting the offer along with a "net sheet" to the lender for consideration.

 

There is NO incentive for you to do anything here. Whether the house goes to foreclosure or sells at short sale before foreclosure doesn't matter one spec to you... so Im not quite sure why you are even considering the short sale at all... sure, it would nice to wind it up w/o the lender having to take it back... maybe some moral victory, but only you can decide that.

 

If you are still living in the house you would be better off NOT pursuing the short sale... and continue to live in the house without cost.

 

One last thing... in regard to the Bk proceedings... has the lender been given relief from the Bk stay or has the Bk concluded and been closed, otherwise if not, the court will have to sign off on the transaction. Just another layer of bureacracy if you need to do so... You might wish to ask your Bk Atty on this if you are not clear on the requirements.