Max -

Make sure you work with REALTORS who are licensed in State where the property is located. In California, the Negotiator must be a Real Estate licensee with E&O insurance in order to negotiate short sales.

Best of luck again,

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. There is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
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Hello Max. I join with all the other members on this site to wish you all the best after the lost of your wife. Our firm has seen a growing trend with banks not approving a loan mod request due to a document not received timely. We have also had some success in having the banks reverse this decision. I am not sure what decision is in your best interest without further discussion but I would suggest that you continue to apply for a loan mod. If the bank continues to deny your request then a short sale or rental is your only available option. If your final decision is to sell the property I can help you with that as well as relocation funds. You would not be required to move until the short sale is approved and the sale completed. This may take several months. If you would like my assistance please contact me directly at 914.384.9554

Max,
In a short sale, you would list your property with an experienced REALTOR. When an offer comes in that is realistic and, acceptable to you, the REALTOR will submit the offer along with a lot of documentation from you to both lenders for consideration. Chase will likely allow $3,000 to be paid to the 2nd (Credit Union). The 2nd may release the lien for that amount to allow the sale to close. Both lenders may - or may not - come after you for the difference depending upon many factors of which your REALTOR, Tax Advsior and Attorney can advise you.

Don't wait - get your house on the market! If your house is foreclosed you may be evicted depending upon how the law in Massachusetts works for foreclosures.

Also, in a short sale, you cannot receive any money from the proceeds of the sale.

Best of luck,

Thom Colby

Depending on how it is written a second can turn into an unsecured personal loan. You need to check the note and see how it is written.

Will the second mortgage get wipe out on a short sale?

Max -

If Chase won't give you a permanent Loan Mod and certainly the Credit Union is not goign to forgive the entire 2nd note, your only choices are foreclosure or Short Sale. Short Sale is far less traumatic to your credit and future than a foreclosure. Find a local Short Sale Listing REALTOR in your area and list the house for sale ASAP.

Best of luck again,

Thom Colby
Originally from Dorchester, MA and now Newport Beach CA

Chase said that I'm not qualify for a modification under the Obama plan. What's really killing me is the $200 a week from the credit union. I had a modification trial of $1060 a month, I was suppose to receive the final modification papers, instead I. Received a letter yesterday stating that a document was ask of me more than 30dags ago,Wich I've sent to them 3 times with the loan number on top.
If only I can take away that $200 a week from the credit union I would be just fine. I also tried to reach a deal with the credit union they rafuse to help.

Max if you want to keep the house don't try a short sale or moving see if you can get a loan modification. Because of the reduction in income caused by your wifes death you may be able to keep the home and make lower payments for a longer period.

Max -

As Elizabeth said, reach out to your local community and see if there may be an attorney who could help you "prro-bono" (at no cost). Also, you should speak with your credit union and explain the difficulties you are having, they may work out a forebearance agreement (delayed payments).

Best of luck,

Thom Colby
Newport Beach CA

Hello Max. I'm sorry to hear about your situation, perhaps you could go to a local church to see if they could help you? Also, speak to your attorney, maybe he/she will have some options for you.