I got a short sale offer on my home and was pre approved by my bank to short sell my house (i understand i don't need to sell since i have a discharged ch. 7, just trying to do right thing, foreclosure is good for no one)..
So my question is since i own nothing on my home why am i listed as the seller on the purchase agreement with the buyer? Shouldn't the Bank be listed? I am signing it and so it looks as thou i am talking responsibility for the fees, taxes, closing costs ect... There is no mention my my bank on the paperwork?? Is this correct?
You are the owner until the bank actually forecloses and takes title in the name of the bank. The purpose of the short sale is to avoid an actual foreclosure. Since the bank will not be paid in full you will need its consent to close the sale. Read the documents, you should not pay anything in a short sale. As you said, you don't need to bother with the short sale - you are doing the bank a favor.
Bankruptcy did not remove you as owner of the house, it only eliminated your obligation to pay the debt. So you are correctly listed as the owner.
I have only found two situations where a short sale was beneficial over a foreclosure after a bankruptcy. The first is where HOA fees continue to accumulate. A short sale allows the owner to stop the accumulating responsibility/debt. The second is where cost in terms of city fines or liability in the form of personal injury create on ongoing exposure to the client.
You need to be aware that when you sign contracts after a bankruptcy you create liability. You may or may not have liability to the agent or buyer in the event the contract does not go through.
If the mortgage company wanted the house back it could do a deed-in-lieu of foreclosure. You should have all documents and decisions reviewed by an attorney prior to signing any contracts.
It sounds like you are getting yourself into a new contract after you just wiped the slate clean. You should have your agreement reviewed by an attorney.
Having someone look at it on an hourly rate and giving you a direct consultation might save you from getting taken advantage of by the lender.
I hope this answers your question.
If you miss too many mortgage payments, your lender can start foreclosure proceedings to take ownership of the property, but it has to follow your state's laws.