what are the advantages and disadvantages of a short sale vs. the advantages and disadvantages of a foreclosure???.. How can I negotiate with the bank the difference?? Do I need an attorney to negotiate the remaining difference with the bank???

I was wondering if a 3rd party can really go to the bank with no credit check etc. and pay a low amount for cash on a property that is in or going into foreclosure. My landlord is letting the house go that route, and I wanted to know is it legal for a middle person to negotiate to get the house in a short sale and then sell it to me?

not too experiance in this area, I’ve heard, you present a packet of 8 different issues to them.
Anyone know what these are
thx

I am involved in negotiating an FHA-backed short sale:

1) Is there a central web site operated by HUD or FHA that can answer general questions regarding FHA loans and short sales? When I google, I get way too many ads and fake site pretending to give good info.

2) Does FHA give moving expenses to the owner if the short sale closes? If yes, how much? (I had heard a rumor that they give $1000, but not substantiated.)

3) I understand that HUD makes the owner take a course before they agree to a short sale. How do I enroll her? I’m sure the answer is available on the right website (again question 1!)

4)The owner did not list with MLS. She did try to sell in Craigslist a few times. Will FHA make her list with MLS for 90 days before they approve any short sale? If so, the auction will occur first. Do you think they would waive that requirement.

I know lots of questions. I would be very appreciative of helpful answers. Thank you!!!
Addendum: I believe she may be required to get “counseling” from HUD before agreeing to a short sale (not a short sale “course” — sorry for confusion.)

I was wondering if a short sale can be done without contracting to one broker and having each realtor that brings a buyer to go straight to the bank so they can negotiate my short sale. Can this be done rather than getting a listing agent?

I’m negotiating a short sale with the bank. Do I still have to keep Home Insurance on my house (payment included in the mortgage) or can I cancel my insurance and get reimbursed for the remaining premium. Won’t the bank have to carry the insurance if the short sale is accepted? Also the realtor I am working with is asking me to hire a pool service and lawn care service company to up keep the house since we are leaving it vacant and for curb appeal for the house to get sold. I can’t afford to pay this extra money. Do I have to hire these services or simply tell the realtor I can’t afford it. Also, I can’t afford to carry utility bills on two houses right now can I just cancel the utilites on the house being short saled and have the potential buyers have the utilities turned on for inspection or am I required to keep the utilities on? Is the debt forgiveness forgiven completely or do I still have to request a satisfaction and wil a VA loan also fall under the new forgiveness act?
My realtor is stating that if the bank assumes a short sale then I don’t necessaily have to keep the insurance they have to automatically insure it themselves, is this correct? Also we care moving out of state and won’t be having any jobs it will be hard for us to hire a lawn & pool service to care for the vacant property like our realtor wants us to hire. We are also temporarily shutting off the water and power so we won’t have a bill while searching for jobs in the new state. Our realtor already has the short sale price set at $98,000 more than what we owe the bank and is being listed as is. So people lookin at the property will know it’s vacant and short sale will they still expect the house to be ut grass and sparkling pool. They will be getting a below market value home already and that is minor stuff the house is imaculate structure wise and needs nothing done to it just freshly painted in and out and kitchen remodeled so will it not sell if grass and pool are not up kept.
I will be keeping the insurance on the house just wanted to see if the realtor was telling me the correct information. Also, we are moving out of state because of personal and medical reasons it is forcing us to move in with family and we can no longer afford the house, I am unemployed and my husbands full time job got reduced from 40 hours a week to 30 hours a week so it has become inpossible for us to keep the house. I’m not completely shutting off the utilities just temporarily until we can establish jobs to be able to pay the utility bills again.

Close family member is in trouble and needs help. Since she is only 2 months behing now and has no job, no money and bad credit, would it make any sense to stay in the home until foreclosure.. instead of negotiating a short sale now?…to save on future rent after short sale goes through?
Right now she is considering negotiating short sale, but that could mean sale/closing in 2-3 months, and then she has to be out and find a rental…and still may be unemployed.

I’m just trying to figure out how long she can stay in the property with short sale vs foreclosure….and weigh the credit consequences of each.

And negotiating with lender for loan modification won’t help. She has no job or money.

My mom bought her town house approximately 7 years ago for 435,000 plus some 30,000 in improvements. With the depleting real estate industry in California the fair market value of the house is 189,000. She went to see her realtor to do a short sale, since the loan modification didn’t worked out (it only reduce the monthly payment for around $200). Everything was alright until the Credit Union calls the realtor and told her that they were not going to do any kind of negotiation. They also told the realtor that they do not have any foreclosures because they are very selective with their clients. The realtor told my mom that is the first time a bank calls her saying no to any king of negotiation. The realtor had sold over 10 houses in same neighborhood on Short Sales and all banks she’s been dealing, they have been open to negotiations. In addition, my mom is 60 right now and in the past year she’s been having some serious health problems (heart, cholesterol, etc.). And a lot of them are related with the stress of the mortgage payments. She has two jobs to support her self, which is not recommended due to her age and heath conditions.

What my mom should do?? Please help! If you have some websites with laws or laws interpretation related with this will be helpful!! Thanks

Note: She bought the townhouse as an investment. Seven years ago things were great in the area she’s living, so the plans were buy it, live it for a few years a sell it. With the supposedly gain, she was going to build her retire home in her home country and live from the pension she’s receiving.
The 2007 Mortgage Forgiveness Debt Relief Act (Public Law 110-142, HR 3648), amended the tax laws to allow borrowers negotiating the loan on their primary residence to avoid having to declare this debt as income (limited to debts of $2 million or less.).

What happens now and why short sales take so long what is the process also if anybody has any tips on how to negotiate this sales let me know please?

Meaning…if they are in Pre-foreclosure–30-90 days in arrears, can you negotiate directly with the bank on the Short Sale, if the property owner can prove hardship prior to the NOD. Or not so much…Either direct purchase, or subject-to.