More job prayers

Hi Danny,
i am so sorry for the hard times you are having. I am not a real estate professional, but I just saw a short segment on this topic during the consumer portion of the local news. Below are the options I remember, and maybe one of them will be worth investigating.

1. A homeowner has up to 48 hours before an auction to list his/her home as a short sale with an experienced short sale Realtor. The lender is notified immediately - not sure if that is done by the Realtor or the homeowner - and this stops the auction. The homeowner will still most likely lose the home, but it will be a process that is controlled by the homeowner and not the mortgage lender, and it buys a few more months to try and find another solution or find another place to live.

The consumer reporter emphasized first speaking with, and then if a decision is made to proceed, using only an experienced realtor who specializes in short sales. In addition to signing the short sale listing papers, the homeowner also signs an addendum that authorizes the realtor to represent him and work with the lender on his behalf.

This saves the homeowner a lot of time and stress, and also eliminates any BS/posturing/threats/misrepresentations by the lender. Evidently a lot of that can occur when they deal with a homeowner who does not know the law, the process, and the ins and outs, but that is not the case with the experienced short sale realtor.

The reporter also said that a short sale process is less damaging on a homeowner's credit rating.

2. If the home loan is sub-prime or nontraditional in any way, all of the terms, conditions and consumer protections required may not have been complied with. There are real estate attorneys who specialize in trying to help such homeowners, and initial consultations with them, as with many attorneys, are free. They will do a forensic audit of the loan documents, and make sure they comply with whatever they are supposed to (I wasn't paying full attention), and if they don't they may be able to stop the sale or even get a home back after it has been taken.

The reporter emphasized that there are shyster lawyers out there so the debtor should make sure to deal only with a reputable attorney who has a specialty in this area, and check them out first.

3. In some areas there are nonprofit groups that have been formed to help homeowners losing their homes. Many of these groups have a good success record of stopping foreclosures and auctions, and keeping the homeowner in the property. They are kind of like the ACLU for real estate, and work with the lenders on your behalf to try and keep you in the homes, or, at minimum, buy more time to try and get a modification. Again, be careful, and check the group out before using.

Danny, I hope I remembered all this correctly. I don't know if any of these are viable options for you, but you might consider meeting with a a short sale realtor, forensic real estate attorney and nonprofit (if there is one working in your area), and see if any of them might work in your specific situation. The initial meetings will be free, or should be according to the consumer reporter, so all it will cost is your time and some gas.

I am sorry I don't have a magic bullet for you, but will keep you thoughts.