A “Short Sale” or “negotiated settlement” when a Lender agrees to accept less than the amount owed to pay off a loan as an alternative to foreclosure. If the property is valued at less than the amount owed on the property ,the Lender will take a loss on the property, even if they foreclose on it, thus mortgage Lenders are more willing to work with us to mitigate their losses quickly to reduce their potential loss.

The Short Sale negotiation process can take as few as 10 days to as many as 2 or more months. It depends on how many files in the Loss Mitigation Dept. and how willing the Lender is to negotiate a settlement amount. It also depends on the number of loans and or liens on the property.
Can I stay in the house?

YES, the key word is “SALE”. The purpose of a Short Sale is to sell the property, usually to a third party. Stage the home if possible, make it accessible and easy to show by Realtors, Tell you friends, family, co workers, pass the word around that you need to sell your home.  Put your ego on hold...
At one point you will have to move, hopefully when a buyer is found. This is not a process to stop the foreclosure and let you remain in the property indefinitely. You may be able to Rent the property from the buyer if they allow it and buy it back in the future.
Don't let would be thief and so called experts trick you into moving out until the home is sold. Never sign over the deed or sign a trust.

Tip: Always answer your foreclosure papers to the court.

You should probably begin looking for alternative housing immediately. Whether you move in with family or look for a new house or apartment, it may take a while to find a location that matches your family needs. You will have to move whether we negotiate a successful Short Sale or if the property goes to Foreclosure Auction. Be prepared!

No. It is an universal requirement of Lenders granting a Short Sale is that the borrower will not get any proceeds from the sale of the property. The Lender is taking a loss on your loan — they are not going to let you get any money.

Do I get to keep the money that I am not paying while the Sale process is ongoing?

Yes, in most cases you can per your hardship situation, but if you have managed to save a lot of money by not paying your mortgage, you may be ask to contribute at closing.
We will surely explain this scenario in person.

There are no guarantees. We can not make a promise that we can reach a settlement with the Lender on your behalf. Once you missed the payment, the Lender is in charge and can proceed to foreclosure if they choose. Lenders most often choose to work on a Short Sale instead of having to foreclose and possibly take ownership of your house, as both are costly.

Your property will go to foreclosure and an auction will be held. If the Lender’s price is not matched, then they take back the property as an REO (Real Estate Owned).
They will go after you for legal fees and any deficiency on the loss.

You can tell them that you are trying to sell your house because you fell upon bad times. This is the only way to save your credit and move forward with your life.
Also remember your friends may help help us find a good buyer.
Tell them you are working with The Keyes Home Team to help you negotiate the sale of your house. REMEMBER— Bad things happen to good people! Hold your head high and be proud that you had the courage to try and save your credit and face your situation head on. Not everyone can and will do that.

No. President Bush signed the Mortgage Forgiveness Debt Relief. Act of 2007. on October 4, 2007. Permanent exclusion from gross income of discharged home mortgage indebtedness.