Posted on: 01st Dec, 2010 08:06 pm
My wife and I found out that we will be having our second child which is a very good thing as we have wanted a second child for awhile now. The problem however is that we are in a very small house we purchased a few years ago out of necessity as there were very few to choose from at the time. The market value is about 40k less then we owe. We need to move and dont mind renting as we understand that we will be short selling as we dont have 40k laying around to cover the difference. I was wondering if anyone has convinced there mortgage company to allow you to short sell while staying current to help reduce the negative effect on their credit? Thanks
Hi bradybriscoe!
Welcome to forums!
If you're current on your mortgage payments, then the lender will consider your request for a short sale. The lender will give you the option of short sale only if you're delinquent on your mortgage payments.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you're current on your mortgage payments, then the lender will consider your request for a short sale. The lender will give you the option of short sale only if you're delinquent on your mortgage payments.
Feel free to ask if you've further queries.
Sussane
It is not an absolute requirement to be late on mortgage payments in order to get a lender to do a short sale.
If there are no late mortgage payments, it is very difficult, but not impossible.
I did a short sale in September, 2010. It was $100,000 short. The house was for sale about 16 months before the shortsale sale process started, then another six months to close. In that 22 month period, the seller went through thousands of $ to keep making the mortgage payments on time, even borrowed money to do that when he ran out of money.
In other words, the seller spent an enormous amount of time and money trying to sell for as much as possible while all the while values and sales prices were dropping.
I am guessing that unless you spend a lot of time and money with the house up for sale, getting a short sale approval without late mortgage payments would never happen
If there are no late mortgage payments, it is very difficult, but not impossible.
I did a short sale in September, 2010. It was $100,000 short. The house was for sale about 16 months before the shortsale sale process started, then another six months to close. In that 22 month period, the seller went through thousands of $ to keep making the mortgage payments on time, even borrowed money to do that when he ran out of money.
In other words, the seller spent an enormous amount of time and money trying to sell for as much as possible while all the while values and sales prices were dropping.
I am guessing that unless you spend a lot of time and money with the house up for sale, getting a short sale approval without late mortgage payments would never happen
Within the last month, my company has listed 15 short sales and have received preliminary approval on 4 of them. It comes down to having a negotiator who knows their business. One of the primary reasons to stay current for these homeowners is to preserve credit and have the ability to purchase another home quickly. We started with the short pay refinance model and naturally progressed to short sales because the banks still are not responding to the refi model.
Brad Ravin
equiturn.com
[Phone number deleted as per forum rules. Thanks.]
Brad Ravin
equiturn.com
[Phone number deleted as per forum rules. Thanks.]
In the lenders eyes most homeowners are doing a short sale because they cannot afford the home any longer. Being current and doing a short sale is not impossible, however, it maybe a little harder to convince the lender to take a loss just because you are underwater on the property. Usually if you are 1 month behind and go 30 days late on your mortgage payment it will impact your score and drop it roughly 60 points perhaps less or more. It is best to call your lender and feel them out, you having a second child could be considered a hardship and that you cannot keep the home and will be moving because you do not have the space for two children. Depending on where you live it may take a while for the house to sell anyways. I always suggest knowing your options and do your homework! A short sale is going to impact your credit anyways in a negative manner and will remain on your credit up to 2-3 years. In the end your credit is going to be dinged.