But there is the problem - if they were told by BOA you breached your payment plan for example, you need to talk with a Nationstar rep and explain what was going on with regard to your payback plan with BOA, and your points about the mistakes. If this was a mortgage modification, then you might need to get a local HUD housing counselor, or Freddie Mac etc involved, but I would start with Nationstar - and I suggest you let them know you are recording phone calls - they will be recording you.
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Please call the HopeHotline right away at 888-995-HOPE for guidance. They have alliances with most major lenders and resources who will intercede with your lender on your behalf to help you resolve this matter quickly, saving your home from foreclosure along the way. You can find references to this organization.
â€¢ The Georgia Attorney General's Website - http://law.ga.gov/mortgage-and-foreclosure-information
â€¢ The Federal Trade Commission's Webiste - http://www.ftc.gov/yourhome
â€¢ The US Dept. of Treasury Website - http://www.occ.gov/topics/consumer-protection/foreclosure-pr
Please PM me and let me know if this helps. I always recommend HopeNow, but never hear back from anyone on their results.
Georgia Real Estate Brokers Associate, REALTORÂ®, REALTISTÂ®, Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners
You need to locate an attorney familiar with foreclosure defense. If you cannot find one or want a reference to a qualified foreclosure defense attorney email or call me. In Georgia it is nearly impossible to get a property back after a foreclosure sale on the court house steps. The sooner you act to stop foreclosure and get your situation resolved the more likely you will be successful. Waiting till the last day reduces your options. Expect this to cost several thousand dollars.
As a last comment, BoA or Nationstar and their attorneys are not afraid or concerned about you. They have a giant steamroller and you are an ant in the path to taking your property. It is unlikely you will be able to get through the phone trees, departments, agents without an attorney. While attorneys are also just large ants, they do have the power to stop the steamroller.
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A short sale happens when the lender is shorted on a mortgage, meaning the lender accepts less than the total amount that is due. If your mortgage is $100,000, but your home is worth, say, $90,000, you are $10,000 short, not including costs to close the sale such as real estate commissions, recording fees or title and escrow charges.
Sometimes, to avoid going through the costs of foreclosure, a lender will sanction a short sale by letting a buyer purchase the home for less than the mortgage balance while the home is in pre-foreclosure stage. A pre-foreclosure stage is one of the three stages of foreclosures.
Qualifications for a Short Sale
Before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer yes to all four requirements, you may not qualify for a short sale.
The Home's Market Value Has Dropped.
Hard comparable sales must substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include a prepayment penalty.
The Mortgage is in or Near Default Status.
It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass.
The Seller Has Fallen on Hard Times.
The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.
A few examples that do NOT constitute a hardship are:
Bad purchase decisions.Blowing your paycheck on a home theater system with surround sound does not qualify as a hardship.
Unhappy with the neighbors.Even if every home on your block has turned into pot growing houses, that will not qualify as a hardship.
Buying another home.The lender will not care if you have decided the home is no longer suitable for you or your family.
Pregnancy.Increasing the size of your family or starting a family is not considered a hardship.
Moving into an apartment. If you decide to move out of your home, that is a lifestyle decision and not a very good reason to abandon your home.
Examples of hardship are:
Medical emergency / sudden illness
The Seller Has No Assets
The lender will probably want to see a copy of the seller's tax returns and / or a financial statement. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference. Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.
For example, if the seller has cash in a savings account, owns other real estate, stocks, bonds or even IRA accounts, the lender will most likely determine that the seller has assets. However, the lender might discount the amount the seller is required to pay back.
Many entities profit from short sales, but there is no seller short sale profit.
Short Sale Consequences
A short sale is dependent on a buyer making an offer to purchase. If you do not receive an offer, you will not qualify for a short sale. So even if you meet all the other criteria, it is possible that no one will buy the short sale. It is also dependent on the lender accepting the buyer's offer. If the lender rejects the offer, a short sale will not take place.
If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.
Blemished Credit Report
While a short sale will not show up on your credit report, the loan status will. For those in default, it's a pre-foreclosure that has been redeemed, which is often reported as Paid in Full for Less Than Agreed. Short sales affect credit ratings. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction.