Short sale question...?

Question

I have owned a condo for 2 years in San Diego and cannot keep up with the payment due to adjustable interest rate and the value has declined about 10%. Eventhough i have never missed and have any late payment, but I will stop making payment next month. I have talked to a realtor and asked him to list the house as shortsales. My question is should i let him start the process NOW, or wait for about 2 to 3 months after i stopped making the payments? I don't want to have buyers interupt on my family yet i want to give my realtor enough time to do his job. How many months of non-payments are we legally allowed until we get evicted???

Answer 1

You aren't allowed ANY months of non-payments legally. You signed a contract and are in breach of same as soon as you cease making payments. Your lender will be the one to decide when to pursue a foreclosure action against you.

Have you discussed a short sale option with your lender ? Engaging in a short sale WILL require their permission and approval. I suggest you contact the lender for guidance immediately.

Answer 2

Legally the lender can start the foreclosure proceedings after missing the due date on the first month, but this never happens. In some cases i have seen lenders go a year before starting the foreclosure process. Typically a lender will probably start to foreclosure process after 90 days late.

I would contact the loss mitigation department with your lender and see if there is anything you can work out with them before hand. You never know what could happen.

Good luck to you

Answer 3

You can't ask a Realtor to list the property as a short-sale without the approval from your lender...you must call your lender and ask to speak to the loss litigation department and work out a deal....they have the right to approve or not approve the short-sale.

The reason that you must contact the lender, is that the LENDER has to approve the contract....not you.