Question: Help me understand the difference between a short sale vs foreclosure. I bought a condo in Tampa, Florida in September 2005. This was my first real estate purchase and my primary residence until I transferred to Maryland for my job in July 2008. I have a first mortgage for $150k and a HELOC for $25k. The property has been short sale approved and there is a buyer that is going to purchase it for the listed price of $60k. We are ready to close but I need to pay all the delinquent HOA fees, late fees and attorney fees that have mounted up. I can not afford to pay the $3000 in late HOA fees to close on the short sale. Now, I am facing foreclosure. I have asked the HOA to waive the late fees and attorney fees so I can do a short sale but they are refusing. Is it worth it to borrow the money from friends and family so I can do a short sale, or should I just let the condo go into foreclosure?
Thank you,
Natasha
Answer: -This is a common question that gets asked a lot about the difference between a short sale vs foreclosure. While both are damaging to your credit, a short sale is a much better option – and here’s why… [Read more…] about Short Sale vs Foreclosure
Those of you familiar with a short sale, you understand that you are building a case to present to the bank. The hardship letter is a key component to building your case and getting your short sale approved. A good hardship letter that is heart felt can literally mean the difference between acceptance and rejection. I may not be as key as the BPO, but it definitely has a great deal of weight when getting these approved. 
Answer: – I’m sorry to hear about your foreclosure in Oregon. I hear this a lot right now as home values in some parts of the country continue to decline. Let me share with you some of the possibilities and consequences you might have as you go through this process. The good news is that you still have a lot of good options since your home hasn’t actually gone through foreclosure yet. Once the home is foreclosed on, there are not a lot of options, so time is key right now. 
I decided to go with the short sale thinking that it would be a better option on my credit rating vs. a foreclosure. I had a first and a second mortgage with the same lender (Chase) I purchased the home with an 80/20 loan and during the time that I owned the home I never refinanced or did anything that would have changed the “purchase money” status. The 1st mortgage balance was $320,000 and the 2nd mortgage was $83,000. 
There are a ton of homeowners right now struggling to make payments and hoping to avoid foreclosure because let’s face, things just aren’t the same as they were before the market took a dive.
Question: We are considering using a holding group and transferring our property to another person to avoid having to hassle with a short sale ourselves; in California, can my lender come after me for transferring property without their prior authorization? This holding group says they take care of everything including the lender.