Posted by Kevin

My Aurora Loan Services short sales is almost completed. I got a call yesterday from Macro my real estate agent that we are still waiting on an update from Countrywide about the second mortgage on my downtown property.  Aurora Loan services wants the short sale completed by the middle of January but Countrywide has not given any indication about how they are going to handle the second.

I spoke to another accountant who says that I am going to be liable for the 100k in 1099 income that Aurora Loan Services is writing off of their books and that because this is an investment property that there is nothing that the Obama plan can do to help.

The worst part about this is that the mortgage was in my name, my brother was living there, my dad was an investor but at the end of the day I am the one holding the bag.  But there has been some good that came from the short sale:

1. I no longer have NEW credit card dept (They canceled the cards)
2. I am living closer to my means and what I can afford
3. I have learned how the system is VERY VERY interconnected…it takes about 65 days after you stop paying your mortgage for everyone to adjust your limits and rates.
4. Hire professional help, you may be tempted to do this alone, but honestly unless you know the mortgage industry – there is nothing in your experience that will prepare you for what is to come.
5. Get a prescription for some low dose anti-depressants.   You will need this to keep focusing on making money and getting yourself out of the hole, rather than spending time thinking about the hole.
6. If you SIGN for something, even if it is for a family member plan for the worst – expect that there will be a default.. And if you can swing it cash flow wise then think about it.. If not DON’T even get involved.

Now the BAD

1. I was on my way to having my 720 credit score – Well sort of.. an now it is down in the low 400′s
2. I have contacted a Credit Repair company and they say if you have over $1000 in unsecured debt of any kind that they can not help to clean your credit.  I am not sure if it is just his one place or an overall rule.  I will let you know.
3. I don’t get credit card offers in the mail, my travel insurance costs me more – I used to have a plan with American Express
4. No more frequent flier miles   Just Kidding.
5. Really it’s not that bad. Once you get used to the collections calls, the rest of it is pretty easy.  If you already own a house and your car works, my feeling is you should force a renegotiation with your mortgage company.  Give them a little short sale scare.

I will keep you all updated as the day goes on.