1) What is the likelihood that the bank refuses to let us do a short sale on the grounds that they don't think our financial situation is dire enough? Is the hardship we discussed sufficient or is there some specific amount of financial desperation we need to prove? You may not have enough info from us to answer this at this point. If so, please let me know what you need to know from us on this, or maybe get the lowdown from xxx on the phone of the overall financial picture. If we have to prove something and can't quite prove it, we want to bail right away before ruining our credit.
- Hardships are not always financial. I have not met a lender yet that wouldn't do a short sale. The real question is what are they going to require from you to do one? Cash contribution? Prom note? Both? Unfortunately we won't know until we go through the process. Here's an article I wrote that may help
2) Our credit is about to get ruined, approximately today. I assume this means we couldn't get another mortgage for 7 years and it will be difficult to get credit cards or anything else of the sort. Is this accurate? Any other important implication that I'm missing?
- It depends. A short sale is usually reported as "Paid in full for less than owed" or something similar. It doesn't show up as a short sale. Assuming the rest of your credit is OK you could be in a position to purchase another home in 3 years. Credit is a complicated issue.
3) What do we say when the bank calls on the phone? I'm not expecting the condo association to call because we don't owe them any money but if they do because they see the listing, what do we say to them?
- Just be honest. Let them know the property is for sale and you are doing a short sale. They may call regularly since it's the collection department that's calling.
4) We have a bunch of pictures that a previous Realtor had taken professionally when we tried to sell it before. He can send you these. There's probably no need to re-take pics. Since we have those, could we or should we put it on the market prior to the tenants moving out? Or not waste the precious first moments on the market when we can't really show the place?
- The property can be placed on the market as soon as we have access to get buyers in. The paperwork can be done anytime prior to that if you want me to go ahead and open communications with your lender.
5) What financial info do we need to send you? I'd like to get that underway because I know it's a lot of work. Also, should I start doing the hardship letter? Do you have any advice before I start writing it?
I'll send over a short sale listing agreement so you can start working on it. Included in that will be an outline to assist with writing a hard ship letter and a list of the financial documents you'll need to proivide.
I hope this helps.