Be very careful on who you get advice from.
Some scheisters prey on distressed homeowners and may recommend actions that are self-serving.
Go to: http://www.MakingHomeAffordable.com and speak with a Federally investigated counselor. It's free.
Also, never ever sign over the ownership of your house to anyone. Find a "reputable" Realtor recommended by family and friends to help you with a short sale if that is your best course of action.
This is a common question and there are a lot of great general answers here. If you are considering a short sale, please educate yourself on the process first. By doing so you will save yourself two very important commodities: time and money. Finding a Realtor who is experienced is one thing, but even then there may be things that they don't know. It is up to you to be engaged in the process. If you're looking for a little more detail about there is an awesome article on TheChicago77 blog that goes step-by-step through the short sale process:
It explains a lot of parts of the Short Sale that a lot of people don't know about and really helps break down the process in a way that will help you navigate through it.
Best of luck to you and Ciao for now,
Short sale will impact your credit scores IF you were go that route , recommend move into next location if you were lease a home after short sale hits your credit report NEW property owner could require double / triple deposits vs. if you have great credit now lease would only require deposit equal to 1st months rent.
Sorry read about you circumstance.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
"Short sale" means that the seller is going to sell for less than they owe to the bank, and are not going to be able to come up with the difference. So the seller will have to go to the bank with the offer in hand and ask "Will you accept this $120,000 as settlement of the $150,000 debt that I owe you, and forgive the deficiency?".
If the bank says "yes", then you have a short sale. If the bank says "no", the buyer and seller may have to renegotiate to settle at a number that the bank will accept.
I've been working a CHRE (certified home rescue expert) for the last year or so. We've helped many homeowners evaluate and determine the best method for dealing with problems caused by our current housing crisis. Here's a link to frequently asked questions. If you're asking any of these questions, please feel free to get back with us for a private consultation. We'd be happy to discuss the best way to handle your situation.
Best of luck -Pat
A short sale is when the property owner owes more then the property is worth. They list the property at the current market price and then ask the bank to forgive the difference between what is owed and what they get in the sale. There are requirements that go along with doing a short sale. The seller must be in a hardship position and can not have any assets or walk away receiving any money from the sale.
Buyers negotate with the seller(Inot the bank) and the sale is subject to bank approval. The bank can either approve, deny or counter the offer.