Xine, I'm not too concerned about BofA, although dishonesty and not playing fair doesn't sit well with me. What I am concerned about is being a pawn in someone else's game. And if there is something dishonest going on with the first contract, I would like it to be declined by the bank. The home is wayyyyyyy underpriced, suspicously underporiced.........nothing in the neighborhood has sold for less than $140,000 (not even the towhomes one street over). And this home is in far nicer condition, on a larger lot, and newer than most of the others. I am prepared to up my offer to the bank, I just want a fair shake at it. I honestly don't believe that the agent/broker ever really intended to sell it on the MLS, I think everything has possibly been pre-arranged w/ the seller, including possibly cash on the side. (the seller purchased it as an 80/20 and HAD a second mortgage, which has mysteriously disappeared...she has been in dire financial straights and there was no way she could have paid that off on her own) I think the house might just be on the MLS to put a show on for the bank. Being encouraged (by the listing agent) to put in a backup offer is not fair play if this is all just a pre-arranged investor game. As for my financial housing situation...My current house is prepped and ready for sale, I just won't put it on the market until I have another house to go to. (I have 2 large dogs and a cat and being put in the position to have to find a rental that will want my menagerie does not seem feasible) My current home has no mortgage, and the new home is to be a cash purchase...so no mortgages are involved on either side of my housing equation.

I'm sorry to hear you're in such a mess. No doubt it's a scary situation to be in. Have you checked your Lawyers references? I used work with foreclosures, and depending on what state you are in, it can take that long for the foreclosure process to follow it's course. Requirements by lenders vary depending on what lender you have and who the investor on the loan is. I know when foreclosure rates started rising nationwide, many of the larger lenders were telling it's borrowers that a 3 month deliquency was required, but I believe that due to the shear volume many have changed their position in that matter and are negotiating Short Sales as quickly as they can. I do several property inspections per week for them in my area alone and have heard the banks are completely overwhelmed with the volume. Just so you know, it's not actually the lenders you speak with on the phone that make those requirements. Typically, borrowers only speak with the servicing provider for the loan and that servicer is obligated to follow it's investors guidelines sometimes insurers like HUD are calling the shots depending on how far into the process the foreclosure proceedings are. I'm not so sure about the advise regarding the property managers, can't comment on that except I'd want to know the logic behind it before following it! I'd also make sure I understood what my liabilities are contracturally in the event of a successful short sale. Basically, you want to make sure that your leasor cannot hold you liable for moving expenses or the like or that the lease protects the leasor from having to move if he/she is paying their rent in a timely manner. If you do ask them to move, I'd be prepared for some trouble, I don't know anyone who would be happy to find out they have to moving from a place they just paid a good chunk of change to live in before their lease expires. Depending on where you live, I'm also wondering if you have a legal responsibilility to disclose to a potential renter as well. Lawyers just like Realtors are bound to follow certain guidelines or laws to protect their clients best interests. I'm not a lawyer, I'm a Realtor, so I don't know off hand what their specific guidelines are called, but I'm sure they exist and you could easily find out what they are by calling the Legal Board, who also maybe able to better advise you. After hiring a Lawyer, people tend to forget that he/she works for you, and you have the right to know and understand what is taking place. Don't allow the fact that he/she is a Lawyer intimidate you. Write your questions down, meet with him and insist on answers. If he doesn't accept your calls, let his secretary know you have made several attempts to contact him and your prepared to call the Legal Board to file a complaint if he doesn't call you within 24 hours. If you are able to meet with him, in addition to questions, if he hasn't already cc'd you on correspondence with your lender, I'd ask him to provide you with copies and all the names of people he's spoken with for your file. Let him know he cannot just take your money and do nothing. If answers to your questions don't make sense to you seek a second opinion. (Regardless, at this point, I'd probably get a second opinion anyway, by a professional in your area who is familiar with your market and the lending laws of your state.) I also recommend that you get in touch with your lender(s) and try to speak with someone in the asset management department. Every week costs them money, the longer you wait to discuss your circumstances with them and try to negotiate with them, the harder it will be. Unfortunately, in the end, as the owner of the home, you are responsible and will be held accountable financially even when misadvised so you need to get busy and do what ever it takes to protect your interests. I hope this makes sense and helps. Good Luck!

I'm working on a proposed short sale with B of A right now, & the only advice I can give you is: 1. Be patient. 2. Put everything in writing, & put the loan number on every single page you fax to them. I wish you the best.

"A Deed of Trust is NOT a replacement of a mortgage, the mortgage is the NOTE. The Deed of Trust ties the property to the note as collateral." There are mortgages and Deeds of trust, and while either can be used, in most places one or the other is commonly used for residential RE. The NOTE is evidence of the debt. In a deed of trust state NO court action is required to foreclose. The trustee has title to the property under the deed of trust and follows the terms in the deed of trust. A mortgage requires judicial action to foreclose. The holder of a mortgage must goto court and show that the borrower has defaulted, They are essentially suing the borrower. Some folks can still look at themselves in the mirror every morning despite knowing they have ripped someone off. During the price run up, I know a couple people who purchased houses from builders with the intent of flipping them quickly after delivery. Every one of them has now lost 10s of thousands of dollars when they walked away, and two are facing lawsuits from builders. I just sort of plod along putting enough down to make sure the rent covers the mortgage and my cash flow is positive. I recently added a few more houses to the pile. The former owners lost all their equity but escaped foreclosure. I got some nice bargains.