All Forum Posts by: Phil Z.

I would suggest continuing to rent if it will pay the mortgage, but it sounds like you don't have repair funds. I would contact the bank ASAP and they will let you know your options ..

Why were you calling out of state?

You do not want to take over a house that is under water.  Subject 2 is best for properties that are behind on payments, but still have equity.

"subject to and resell it to him in a year", would be exactly a Quite Claim to the investor and the prior owner signing a lease.  Signing over the house alone enables most lenders to immediately initiate a foreclosure.  They waited a little too long to decide what should have been done from the begining which was probably a short sale.

They can sell to a retail buyer and get out of the mortgage .. why would they sell to you at a number where both of you will lose?  The numbers are too tight for a flip.  

I've done lots of short sales and never heard of a "preliminary letter of disclosure for potential short sale".   Sounds like a fancy way of saying you're clueless. LOL  (sorry)

You need to send Chase's Short Sale Department a "3rd Party Authorization" and request to initiate a short sale.  All the facts about the house should be included in the "Hardship Letter" portion of the Short Sale Package, and should also be detailed with the Appraiser that comes out to value the property.

Heirs will not be able to get $20k .. they are dreaming. Reverse Mortgages are very specific guidelines administered by HUD. They have 6 months to sell from the time of death.

I would try to sell them on protecting their late families name by avoiding foreclosure and selling the home more honorably.

Most mortgage have little affect on principle in the first 10 yrs, so compare that to the estimated current value.  If its a short sale, then the actual mortgage amount is irrelevant because it will only sell for todays market value.

Basically you're going to have to wait around for approval (or not approval).  This could be 2-6 months.  You'll want a clause in th contract that you'll agree to wait a max 3 months then have the option to decide to continue to wait or extend the waiting period.

It is definitely possible to short sale without missing a payment.  I have done them.