3 tips for a successful short sale

REThink Real Estate

Q: I bought a fixer-upper a few years ago using a first mortgage with Bank of America and a second mortgage with CitiMortgage. This was not an investment property; I lived in it, but because of the market, have never been able to do the work the house needs, which would run about $150,000. I put the place on the market as a short sale, and got an offer that was really low, but understandable because of all the work that's needed to make the house really livable, and the bad reputation my city has for making it very complicated and expensive for homeowners to get their work plans approved. Bank of America instructed me to enter my financials and the details of the offer into their new online Equator system. The offer was rejected, but I don't feel that the bank has all the information it needs to make a reasoned decision on the offer. And the same day the system rejected the offer, I read that both of my mortgage banks are now going to offer principal reductions to borrowe...