[blue123456789]

I have been trying to sell my home, but now understand that it is worth less than I owe on it. I cannot make the monthly payments and the bank doesn't seem to be willing to help... I have ask.

If the home goes into foreslosure, we walk away after 4-5 months and the home is eventually sold for less than we owe... what are the chances of the lender filing suit for the difference between the price we owe and what it is finally sold for?

Also, if I stop making payments for 2-3 months... might the bank then be willing to work on a "short sale"?

Thanks for your help.

[progunr]

Yes. You can expect the lender to attempt to recover the difference between the loan balance and the price they get for the home. You will be notified after it is sold, and can try to make payment arrangements at that time. If you don't, they will most likely file suit for the balance owed.

As long as you are making payments, you probably won't be foreclosed on, so, I don't understand the part of your question "if I stop making payments"??

[Fr_Chuck]

It will be up to the bank to decide if they will take a short sale or not. I have seen about 10 short sale offers refused during the last few months. And I have seen them go 4 to 6 months before they even started foreclosure. A lot will depend on the bank and how they deal with it.
One specific lender we worked with lately, would leave the borrower, even the real estate people on hold over 30 min and refuse to give pay off info and more. I was personally told by two lenders they would rather forclose than allow a short sale. ** this may not be the common practice, but what I was told twice in the last couple months