Posted on: 27th Mar, 2008 07:50 am
Hello,
I am planning on stopping payments to expedite a short sale for my Primary home from next month. I have a propertytax bill as well that is due early next month. Should I be paying the Property Tax to protect myself or Can I just ignore it?
I have 1st loan with INGDirect and I dont have a second loan. This is refinanced mortgage. I am upside down on the price. Bought it 2 years ago and the price is 180K less than I owe to bank. My commute is 3-4 hours daily and this is stressing me. I am not sure of lender would let me do a short sale as the difference is over 180K. Should I stop payments before even bringing this with the lender and talk to them about short sale once they contact me? what happens if i stop making payments while trying to get a short sale?
I have 401K, cars and future paychecks from work. Since, I dont have 2nd mortgage, am I protected in terms of these?
Thanks for your help..
I am planning on stopping payments to expedite a short sale for my Primary home from next month. I have a propertytax bill as well that is due early next month. Should I be paying the Property Tax to protect myself or Can I just ignore it?
I have 1st loan with INGDirect and I dont have a second loan. This is refinanced mortgage. I am upside down on the price. Bought it 2 years ago and the price is 180K less than I owe to bank. My commute is 3-4 hours daily and this is stressing me. I am not sure of lender would let me do a short sale as the difference is over 180K. Should I stop payments before even bringing this with the lender and talk to them about short sale once they contact me? what happens if i stop making payments while trying to get a short sale?
I have 401K, cars and future paychecks from work. Since, I dont have 2nd mortgage, am I protected in terms of these?
Thanks for your help..
I hate to break the news to you all, but a DIL, SS, or Foreclosure affects your credit score in the exact same way. One is not looked upon more favorably than another. They have the same affect on your credit.
This is indeed news! I mean when i read the posts of experts visiting our forums such as in http://www.mortgagefit.com/deedinlieu/affectcredit.html#39235 , I do find it different.
Wow, Kish....they were able to forgive a difference of $200k. That's great. Im waiting to hear back for my DIL proposal. The difference they would have to eat is about $60k. I pray and hope they accept it. This has been nothing but a monkey on my back.........
When is the lender supposed to inform you about the deed in lieu?
There can be a difference between Deed-in-lieu, Short sale & Foreclosure as far as their affect to your credit rating.
If you go through the foreclosure process then you will undoubtedly show 120 days late or higher on your credit once everything is finalized thus seriously affecting your credit score.
BUT
If you go through Deed-in-lieu or Short Sale it is possible to:
If you can get the lender to report it favorably for you - must be in writing to protect yourself before you finalize the Short sale or Deed-in-lieu.
With no late payments showing and it being reported as "paid as agreed and in full" credit remains the same. This is happening more and more as lenders lose an average of $50k additional dollars going through foreclosure and are sometimes willing to do almost anything to avoid it. Don't ask them if they will do it, tell them they will do it or short sale deed-in-lieu will not continue and see if they call your bluff. Worst thing that can happen is they say no.
If you go through the foreclosure process then you will undoubtedly show 120 days late or higher on your credit once everything is finalized thus seriously affecting your credit score.
BUT
If you go through Deed-in-lieu or Short Sale it is possible to:
If you can get the lender to report it favorably for you - must be in writing to protect yourself before you finalize the Short sale or Deed-in-lieu.
With no late payments showing and it being reported as "paid as agreed and in full" credit remains the same. This is happening more and more as lenders lose an average of $50k additional dollars going through foreclosure and are sometimes willing to do almost anything to avoid it. Don't ask them if they will do it, tell them they will do it or short sale deed-in-lieu will not continue and see if they call your bluff. Worst thing that can happen is they say no.
kingno1,
Yes, a short sale would be a better way to go. Most banks will do a short sale when a reasonable offer to purchase the home is made. They will not do a short sale if they do not feel the offer is of fair market value such as selling the home at a discount to a relative, etc. If you are just looking to get out from under this home, putting it on the market and the bank accepting a short sale is most likely the best way to go.
Yes, a short sale would be a better way to go. Most banks will do a short sale when a reasonable offer to purchase the home is made. They will not do a short sale if they do not feel the offer is of fair market value such as selling the home at a discount to a relative, etc. If you are just looking to get out from under this home, putting it on the market and the bank accepting a short sale is most likely the best way to go.
Bank is kind of delaying even after submitting the offer. So, I called them last week saying that I cant afford mortgage from this month. Bank is going to let me know the decision tomorrow as the buyer revised his offer to 300 from 325, while i owe 530 on the home.
I am talking to my assigned banker from my lender today and she said that the 1099 issued will be on fair market value - sold value rather than 530 - sold value. Is this true? I dont believe this statement but, I would be more happy if this is the case. I live in CA and counting on Mortgage relief act but, if something doesn't go through well, fair market value - sold value definitely relieves me.
Suggestions?
I am talking to my assigned banker from my lender today and she said that the 1099 issued will be on fair market value - sold value rather than 530 - sold value. Is this true? I dont believe this statement but, I would be more happy if this is the case. I live in CA and counting on Mortgage relief act but, if something doesn't go through well, fair market value - sold value definitely relieves me.
Suggestions?
Hi kingno1,
The 1099 would be on the difference from what the home sold for and what you owed so in this case if they accept the offer of 325K but you owe 530K then you would recieve a 1099 for 205K. Check with an attorney about the 1099 since I am not 100% sure on this.
The 1099 would be on the difference from what the home sold for and what you owed so in this case if they accept the offer of 325K but you owe 530K then you would recieve a 1099 for 205K. Check with an attorney about the 1099 since I am not 100% sure on this.
is there a way to stop a short sale
Hi Joseph!
Welcome to Forums!
If there is a contract with the buyer then you will have to have a word with the lender, your lawyer and the buyer and the realtor. You can also refer to the following link:
http://www.mortgagefit.com/problems/stop-shortsale.html
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
If there is a contract with the buyer then you will have to have a word with the lender, your lawyer and the buyer and the realtor. You can also refer to the following link:
http://www.mortgagefit.com/problems/stop-shortsale.html
Feel free to ask if you have further queries.
Sussane
i am currently 2 mos. behind my mortgage aug. sept and i did talk to my lender and i paid 1 mos mortgage with late fee at the end of sept. i am due every 1st of the mon. now its oct. and i wont be able to pay for my mortgage again its way too high. they told me i am ok for a loss mitigation but i have to wait for maybe abt 30 days. we would like to relocate eventually so do i need to find a realtor now and start putting our home in the market? pls advise me
Hi nya!
Welcome to Forums!
You can try and rent the house to someone and pay the mortgage from that amount. You can also opt for a short sale and speak to the lender about that.
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
You can try and rent the house to someone and pay the mortgage from that amount. You can also opt for a short sale and speak to the lender about that.
Feel free to ask if you have further queries.
Sussane
Hello,
Bank did sent me an official Short sale letter for a price of 335K based on a buyers offer to purchase. He is going through an FHA loan program. The appraiser came in yesterday and he appraised it for 321K. My buyer is coming back to me now and saying that he dont want to put money from his pocket and asking me to talk to my bank to reduce the price. We are almost at the edge of closing the escrow next week. I conveyed this to my bank this morning and waiting for them to respond. Now my options are...
1) either bank should reduce the price my 15K.
2) If the bank is willing to reduce some, I can pitch in some to meet the buyer.
3) If the bank dont want to reduce that amount, they are OK to do Deed in Lieu.
I want to negotiate with my bank to see if they reduce the price..worstcase atleast pitch in half, so I can come up with other half.
Taking the worst case scenario, if the bank doesnt agree for that, then it will be me putting
a) Short sale with me putting 15K from my pocket (I got to partially borrow this)
b) Let the bank do deed in lieu.
I Need some expert advise here on what would be the best option given the long term implications and stuff like that.
Please help, Experts!
Bank did sent me an official Short sale letter for a price of 335K based on a buyers offer to purchase. He is going through an FHA loan program. The appraiser came in yesterday and he appraised it for 321K. My buyer is coming back to me now and saying that he dont want to put money from his pocket and asking me to talk to my bank to reduce the price. We are almost at the edge of closing the escrow next week. I conveyed this to my bank this morning and waiting for them to respond. Now my options are...
1) either bank should reduce the price my 15K.
2) If the bank is willing to reduce some, I can pitch in some to meet the buyer.
3) If the bank dont want to reduce that amount, they are OK to do Deed in Lieu.
I want to negotiate with my bank to see if they reduce the price..worstcase atleast pitch in half, so I can come up with other half.
Taking the worst case scenario, if the bank doesnt agree for that, then it will be me putting
a) Short sale with me putting 15K from my pocket (I got to partially borrow this)
b) Let the bank do deed in lieu.
I Need some expert advise here on what would be the best option given the long term implications and stuff like that.
Please help, Experts!
Welcome kingno,
If the lender goes in for a short sale, then definitely you will have to pay the deficient amount from your pocket. If you do not pay that, then the lender may place liens on other properties that you own. If you go for a deed-in-lieu foreclosure, your deficient amount will be forgiven but it will considered as an income by the IRS and you will have to pay taxes on that amount.
If the lender goes in for a short sale, then definitely you will have to pay the deficient amount from your pocket. If you do not pay that, then the lender may place liens on other properties that you own. If you go for a deed-in-lieu foreclosure, your deficient amount will be forgiven but it will considered as an income by the IRS and you will have to pay taxes on that amount.
Hello Adonis,
I disagree with your statement here.
I do have a short sale acceptance approval letter from my bank that states"Subject to the following conditions, INGDirect will accept a payment in the amount of 325,212 in full satisfaction of the above referenced mortgage". Which means that I am not liable for the difference.
This will be the same case for DIL as well. Bank will issue 1099 for the difference amount, for which will be forgiven due to mortgage forgiveness act which is valid until 2009.
My question was not related to the financial implications. I wanted to knoe my credit implications and is paying 10K from my pocket worth going for short sale vs letting DIL. BTW, my bank agree to work with me on the difference amount of 15K. They will let me know either monday or tuesday. I looked at their assessment worksheet on my mortgage. And their numbers shows an approximation of 9 months to sell the property in case of DIL along with agent fee which comes to 45K. Clearly, 15K is better than 45K and the hassle. So, I am hoping for them to accept it. Worst case, I did talk to my buyer already and we agree to share the difference by coming in between. So, hoping for the best and lesson learned.
My earlier query was my credit implications with SS vs DIL. If I want to buy a home down the road with say, 20% downpayment, what would be the time I am looking at before banks start lending me with decent rates?
Also, I hear that some companies are proposing to ignore the forclosures and house related stuff in future in credit reports...How accurate is that info?
Thanks..and good luck to all of us.
I disagree with your statement here.
I do have a short sale acceptance approval letter from my bank that states"Subject to the following conditions, INGDirect will accept a payment in the amount of 325,212 in full satisfaction of the above referenced mortgage". Which means that I am not liable for the difference.
This will be the same case for DIL as well. Bank will issue 1099 for the difference amount, for which will be forgiven due to mortgage forgiveness act which is valid until 2009.
My question was not related to the financial implications. I wanted to knoe my credit implications and is paying 10K from my pocket worth going for short sale vs letting DIL. BTW, my bank agree to work with me on the difference amount of 15K. They will let me know either monday or tuesday. I looked at their assessment worksheet on my mortgage. And their numbers shows an approximation of 9 months to sell the property in case of DIL along with agent fee which comes to 45K. Clearly, 15K is better than 45K and the hassle. So, I am hoping for them to accept it. Worst case, I did talk to my buyer already and we agree to share the difference by coming in between. So, hoping for the best and lesson learned.
My earlier query was my credit implications with SS vs DIL. If I want to buy a home down the road with say, 20% downpayment, what would be the time I am looking at before banks start lending me with decent rates?
Also, I hear that some companies are proposing to ignore the forclosures and house related stuff in future in credit reports...How accurate is that info?
Thanks..and good luck to all of us.