Posted on: 20th May, 2009 01:14 pm
I purchased a condo 5 years ago on a 3/1 ARM with zero down, interest only loan. My condo has dropped in value about 75K since I purchased it. Since, I have married and have children and basically, we are in desperate need of a larger place. My husband lost his job a year ago and I am going to be laid off from my job in a few weeks. Given our current situation, I was thinking this may be the ideal time for a loan modification but I hear that this requires that you live in the property. Our goal is to get into a fixed mortgage and then rent out the condo so that we could move into a larger home (either rent or own). So, my questions are:
1.) Since we have been saving for a house, I have a substantial amount of money in a savings account in my name. Would I need to move this to an account in my husband's name in order for the bank to qualify me for a loan modification? His name is not on the loan that I have since my condo was purchased before we were married.
2.) Would the bank consider a short-sale given my current situation? I ask because since I put nothing down at time of purchase, I don't have much to lose and the problem is that we do not want to live there anymore anyway since it is too small for my family.
Looking for guidance on what to do, please help, any suggestions welcome!!
Thanks!!
1.) Since we have been saving for a house, I have a substantial amount of money in a savings account in my name. Would I need to move this to an account in my husband's name in order for the bank to qualify me for a loan modification? His name is not on the loan that I have since my condo was purchased before we were married.
2.) Would the bank consider a short-sale given my current situation? I ask because since I put nothing down at time of purchase, I don't have much to lose and the problem is that we do not want to live there anymore anyway since it is too small for my family.
Looking for guidance on what to do, please help, any suggestions welcome!!
Thanks!!
Hi hmitchell,
If you transfer your saving's account in your husband's name, it may be considered as fraudulent activity by your lender and he can penalize you for this. You need to consult a lawyer before taking any such steps.
If you are delinquent on your mortgage payments, you can apply for a short sale. The lender will judge your situation and decide whether he would accept your request or not. It is totally the lender's discretion to accept or reject the offer.
Thanks
If you transfer your saving's account in your husband's name, it may be considered as fraudulent activity by your lender and he can penalize you for this. You need to consult a lawyer before taking any such steps.
If you are delinquent on your mortgage payments, you can apply for a short sale. The lender will judge your situation and decide whether he would accept your request or not. It is totally the lender's discretion to accept or reject the offer.
Thanks
hmitchell30
Based on yoru current situation the bank may help you with loan modification. Probablya good idea to try it out. But it is long process and you need to be patient.
Short sale - Bank will probably agree based on the short sale price you put. Thye may not consider your situation as the main facotr here.
But rememenr after a short sale, you will probably lose some points on your credit report, which may not help you, if you are plannign to buy one more house immeditely after that.
Based on yoru current situation the bank may help you with loan modification. Probablya good idea to try it out. But it is long process and you need to be patient.
Short sale - Bank will probably agree based on the short sale price you put. Thye may not consider your situation as the main facotr here.
But rememenr after a short sale, you will probably lose some points on your credit report, which may not help you, if you are plannign to buy one more house immeditely after that.