We are not in foreclosure, nor have we ever been late on a payment. We are however located in an area with plumeting house prices due to foreclosures.
We received the most incredible offer from someone in a great historic area. My husband works in historic preservation so the offer was only made to him. The lady wants my husband to buy her house appraised at 550K for 300K. She wants to make sure the house is in good hands and since that is what he does for a living, she chose him.
The problem we have is with our current mortgage. We bought our home 2 years ago for 339K. Houses in our neighborhood are dropping in price quickly. A realtor is working some numbers for us tonight but I estimate it would sell for about 275K to 300K. I called our lender and they were quick to offer me a short sale even though I made it clear that is not what we are looking for. We want to take care of the debt we owe once the house sells. They told me it wasn't an option, They said their investers have only let them have the option of doing a short sale and taking the loss unless we had the money in full at closing. Does this sound right? I spoke to several people and all of them told me the same thing. What do people do if they need to short sale but want to take care of the debt so they can still purchase another home. We only want to do the right thing. Doing a short sale and not paying the difference isn't an option especially since our credit would take a hit and we couldn't buy the new house.
Any advice on what we should do?
[ Edited by seahorz on Date 02/14/2008 ]