Legal Question in Real Estate Law in California
I just received a discharge from a chapter 7 bankruptcy and was denied a loan modification since all of my credit card balances were discharged. I received bad advice from my lawyer and did not file chapter 13. I have a mortgage og $315000. I am behind $12,700 in mortgage payments and have an escrow shortage of $7300. Total owed on property is $335000. The current value of the property is about $350000. Am I able to do a short sale? I would have to pay $17500 minimum in real estate fees which would put me in the negative.
3 Answers from Attorneys
I would think your bank would look favorably upon either a short sale or a deed in lieu of foreclosure. The latter might avoid paying a commission.
Which BK chapter you filed under is irrelevant to your credit score damage and ability to refi or obtain loans. It occurs either way. Short sales are 'negotiable' with the bank. Do your best, but understand only a small percentage of requests are successful.
You can attempt to negotiate the fee with a realtor although most will not change what they charge. Zip Realty will rebate some of the commission to you and I am sure you can find others that will charge less than 6%. You can also get the property listed by yourself on the MLS; if you are willing to spend the time you can get try to sell the property yourself, listing it for same $340,000 to attract buyers.
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