A lot of what you are hearing these days in misinformation. A lender does not want to foreclose unless they absolutely have to. It is not in the lender or banks best interest to foreclose. Therefore, regardless of the hurdles the lender puts out there, they will in fact, work with most owners.
Below is a guide to help you figure out what your next step is. I can help you with this. I have helped others in the same situation get their home accepted by the bank at a lower than payoff amount. Please contact me if you would like me to help.
The first thing is ... YOU HAVE TO BE AT LEAST 3-4 MONTHS BEHIND ON YOUR MORTGAGE PAYMENTS. If you are current, the bank has no incentive to help you.
Step 1. Sellers will need to contact their lender to get the name of a contact person and phone number. An email address is always good. Ask for the "Short Sale" department of "Loss Mitigation".
Step 2. Have the sellers sign a letter from the agent authorizing the agent to discuss with the bank/lender the terms of the agreement and to act as the sellers representative in dealings with the lender/bank.
Step 3. Prepare a hardship letter. I will prepare a net sheet for the sale of your home based on the comps for your neighborhood. These two items will be submitted to the bank for their review.
Step 4. Sellers will need to prepare a financial disclosure showing the inability to pay the loan payments. This needs to include all debts and income. I can show you how to do this.
Step 5. I will submit your listing agreement, financial disclosure, comps (CMA) along with photos and any other related information to the lender/bank.
Step 6. Determine what the bank will accept as a payoff amount along with acceptable commissions for the two sides, warranties and needed work found from a home inspection. I will do a walk thru with you to determine what we absolutely need to do to get the home ready for sale.
The key to this whole situation is to make it as easy for the lender as possible so that they will just accept the deal we bring them, cut their losses, and move on.
By closing on the home with an approved in advance short sale, I can help you avoid a nasty credit mark and get you on your way to a better tomorrow.
Please contact me for a confidential meeting to determine how I can assist you.