We can afford this home, but consider walking away just to be able to realize our goal of moving away from our current town. It could be years before I’m able to sell my home for what I owe. It would rent for only about 65% of the mortgage payment.

Five months ago the house appraised for $285k, but the comps are going for much much less. I believe, based on the comps, and the fact that no one is even looking at our home, that it would sell for around $240k. I owe $268k. I’ve always been a person of integrity. My credit score is excellent. I’m beginning, however, to feel like I’m paying, unfairly, for a situation that I personally did not create. How long is one expected to remain in a situation they’re not happy in? I’m beginning to see this as a business decision and not so much a moral one. It’s interesting to me that in cases other than real estate, cutting one’s losses of a bad investment is considered prudent. If I thought the bank would work with me on a short sale, I’d gladly go that route, but because I don’t have a qualifying hard ship, I don’t think it would be an option. I’m beginning to consider a strategic default. Any thoughts on this? Am I missing something? I’d love input.

My question is the morgage is in my husbands name only , but the title is in both our names. Does this effect both our credit scores or just his? If we short sale

Many thanks in anticipation of the answer

Tracey

Last year in August I sold my home as a short sale due to the same reasoning you have. My realtor recommended a short sale right from the get go. The process was somewhat of a hassle especially since I had two mortgage companies do deal with. Long story short…I would recommend a short sale over a foreclosue any day.

Hang in there!

It’s hard for any agents to give you advice, since your working with a Realtor®. There are prohibitions in interfering with an agency relationship, so you will need to have this conversation with your agent, when seeking advice.

What we can respond to in general, is that most of the time Short Sale maybe a better of the two options. However, a CPA and/or attorney is who you actually need to direct your questions to.
.-= Matthew Rathbun´s last blog ..My Stay at the Hyatt Place in Chesapeake Virginia =-.

Just a reminder that this is a Federal mandate regarding the choice of settlement preference for title services/insurance in RESPA guidelines.

Commonly the REO lender, when challenged about the buyer’s choice, will say “Oh, those are forms we use in every state and didn’t know Virginia’s law”. I don’t know why they try this, with a federal law in place.

Regardless, it’s a common “demand” from Lenders, but usually when the listing agent won’t stand up to the lender and decline to add that requirement.

Many listers will place the “demand” in the MLS and claim caveat emptor. I call it predatory – in that they are hoping the buyer will not know their rights or will feel the need to waive their rights in order to get the home of choice. This is a ubiquitous practice…

I hope that the RESPA re-write will prohibit even being able to market or advertise a Seller’s preference. I understand that the current task force is looking to (maybe have) make it unlawful to offer incentives for using the Seller’s settlement company of choice.
.-= Matthew Rathbun´s last blog ..My Stay at the Hyatt Place in Chesapeake Virginia =-.

This is in response to Richard’s mention of BIG banks and their powers. I’ve posed a question to the Virginia Bar Association regarding REO properties where the bank is REQUIRING buyers in Virginia to use their closing agent/settlement company or their contract offer will not be considered or accepted. Now, we all know VA Code forbades this – correct? ["§ 6.1-2.21:1. Choice of settlement agent. A purchaser or borrower in a transaction related to real estate in the Commonwealth shall have the right to select the settlement agent to provide escrow, closing, or settlement services in connection with the transaction. The seller in such a transaction may not require the use of a particular settlement agent as a condition of the sale of the property. (2009, c. 140.) "]

Have any agents out there had clients who were, in my opinion, “coerced” by the selling bank or the listing agent to use that bank’s closing agent/settlement company or their ratified contract would be rejected? We all know purchasing a home is an emotional thing and this just pushes it over the cliff. If anyone has – I would certainly like them to contact me regarding this.

Now, I don’t think I am a free-loader or one who is trying to get more than I deserve. As a married couple living in a house, we could afford it and would have kept affording it if the marriage would have worked out. So there are many circumstances that go into a foreclosure/short sale, not just those living the good life and realize they are living to freely!
Thanks for any input!!!! Brandy