Posted on: 15th Apr, 2009 01:25 pm
Due to income drop I am now in a "short sale" of my current home, (a condo). As I prepare to find alternative housing, landlords are hesitating due to recent payment history on condo.
A lender did approve a "second chance" loan on a manufactured home, (in foreclusure). Low amount still owed on the foreclosed house and mobile home park lot rental combined with loan payment of 350.00 per month, (includes taxes and moderately high interest rate), will be 750.00 per month, which is nearly 1/2 of my existing housing costs.
The question.....Is it legal, ethical, whatever for me to arrange payments to one lender, (albeit a very low payment), when my current condo lender is accepting an offer of less than I owe on that loan? Can my condo lender actually prohibit or prevent my purchase of another dwelling if I technically underpaid them? If they accept the "short sale" and we proceed with that process can I/should I go forward with the new purchase? I am trying to reduce overall monthly costs in order to pay all creditors and not default. Hope you understand my general question. Feedbck is needed, not trusting the varying answers I'm getting from different sources. Thanks very much. Greg Oloffson
A lender did approve a "second chance" loan on a manufactured home, (in foreclusure). Low amount still owed on the foreclosed house and mobile home park lot rental combined with loan payment of 350.00 per month, (includes taxes and moderately high interest rate), will be 750.00 per month, which is nearly 1/2 of my existing housing costs.
The question.....Is it legal, ethical, whatever for me to arrange payments to one lender, (albeit a very low payment), when my current condo lender is accepting an offer of less than I owe on that loan? Can my condo lender actually prohibit or prevent my purchase of another dwelling if I technically underpaid them? If they accept the "short sale" and we proceed with that process can I/should I go forward with the new purchase? I am trying to reduce overall monthly costs in order to pay all creditors and not default. Hope you understand my general question. Feedbck is needed, not trusting the varying answers I'm getting from different sources. Thanks very much. Greg Oloffson
I woudl say, the lender who agreed on the short sale did it based on some assumptions and market conditions.
You are goign to buy another house based on your requirments, unless you plan to sell it soon after that.
You are goign to buy another house based on your requirments, unless you plan to sell it soon after that.
Hi
Did you discuss the option of modification with your lender? Since you basically want to reduce overall monthly costs in order to pay all creditors, a modification would have been better than a short sale. However, I think it is quite legitimate for you to go for a new loan at a much lower rate. After all you're going to lose your home through short sale, and you have the right to look for alternative options.
Did you discuss the option of modification with your lender? Since you basically want to reduce overall monthly costs in order to pay all creditors, a modification would have been better than a short sale. However, I think it is quite legitimate for you to go for a new loan at a much lower rate. After all you're going to lose your home through short sale, and you have the right to look for alternative options.