Foreclosure in 20744>Question Details

Mmedina369, Home Owner in 98375

My husband and I applied for the HAMP, but were denied because we can afford our payment. Our home is $100k underwater. Can we short sell?

Asked by Mmedina369, 98375 Thu Apr 14, 2011

Our servicer is BOA and the private invester who is not participating in the HAMP is LaSalle. We talked to a BOA Loan officer who said only option is to short sell. No other options available to us. Is this true?

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17
I don't understand why the BOA loan officer told you the only option is to short sell???? One of the major criteria for a short sale is a hardship letter. Being underwater is not considered a hardship. Since you can make the payment, that is not a hardship either - it would be a hardship if you couldn't make the payment. The only option that seems available to you since you can make the payment is to make the payment. Since you don't have a hardship, it is very unlikely a short sale would be approved.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
Web Reference: http://www.RealtyBySR.com
2 votes Thank Flag Link Thu Apr 14, 2011
There is another option. Since you said you can afford the payments, why not just pay for it? I'm sure that was your intent when you bought it. The fact that the market may indicate a paper loss, is irrelevant; It's not an actual loss until you sell. If you have no hardship, you don't need modification or a short sale.
2 votes Thank Flag Link Thu Apr 14, 2011
You can absolutely short sell your property. Just because you were denied for HAMP does not mean that you cannot short sell your home. Many of clients are denied HAMP and go on to short sell their home succesfully.

There are a number of hardships that the bank considers when approving a short sale that have nothing to do with HAMP, and affordability is just one of them. If you need to move because of work, personal, financial, or a number of other reasons, a short sale is available to you. Now, the deal you workout with the bank is a different story. If you have a lot of assets they may request that you contribute some money toward closing. They may request you sign a promissory note.

Many investors, including Fannie Mae, are now requesting owner/seller contribution at closing on most of their short sale approvals, with no regard for the seller's ability to pay. It's just a automatic requirement added to the offer and approval. The short sale processor working on your behalf has to request a removal of the contribution, as well as the automaic promisorry note, at the time the offer is presented to you. Although they won't show you how to go about removing these, you can review the new short sale guidelines as released by the Federal Housing Finance Agency (FHFA) in their press release:

http://www.fhfa.gov/webfiles/24211/ShortSalesPRFactFinal.pdf

Most lenders will prefer to short sell your property, even if you have assets and could afford to keep it. They know that eventually most underwater borrowers become enlightened and come to realize that it is a waste of money to continue funding an overpriced property. They play on your guilt and emotions at first until the light bulb comes on and the borrower realizes it's better to let the property go than to keep throwing all their money away. The reason most modifications do not work is because most homeowners come to this realization, that even at 0% interest rate they are paying in to an overpriced property.

Talk to a qualified agent about listing your home for short sale. HAMP is an automatic part of the process and if you don't qualify they will move on to the short sale. Good luck!
0 votes Thank Flag Link Tue Nov 20, 2012
Hi Mmedina369,

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0 votes Thank Flag Link Wed Sep 5, 2012
As a Highly ranked BofA Short Sale Specialist in this area, I think you would do well to follow the advice of several of my fellow agents and contact one of us for a one-on-one conversation.

The Key to your answer does fall in the ability to clearly show a Hardship for Short Sale Approval. That being said, Short Sales are so incredibly nuanced and detailed that a brief response online only serves to add more confusion to your situation.

Take the next step and contact one of us... I'm sure you will get the professional help you are seeking!

Best wishes & hope to see you get the resolution you need!

Phil

Phil Seldon, GRI
Long & Foster Real Estate, Inc.
10901 Indian Head Hwy,
Ft. Washington, MD. 20744
301-292-0700, x 249 Ofc
301-292-3626 fax
202-486-6727 cell
0 votes Thank Flag Link Wed Sep 5, 2012
Medina,

Hopefully the value will return to your home quickly. a lot people focus on the fact that their home is currently underwater in terms of value if you plan to stay there for some time focus on paying the mortgage balance down as much as you can. the value will return. if this an option look into a loan remodification.

good luck
0 votes Thank Flag Link Tue Sep 4, 2012
When does your loan adjust? If you want a free consultation, give us a call. Bank of America has changed how they operate in some departments.
We can at least get some assistance for you from our BOA contact. Because of their position, they may be able to tell us what a loan officer can not/ will not.

Tyra

Tyra N. General
Real Estate Consultant|Short Sale Expert|Luxury
Keller Williams Preferred Properties
d: 240.706.SOLD (7653)
o: 240.737.5000
tgeneral@athomewithtyra.com

----
Hi,

To be honest with you it is hard to give you a complete answer without knowing your entire situation.
However, what the BOA loan officer said to you may be true. Here are a couple of things I would definitely ponder:

1) Do I really want to keep the home or sell?
2) If I want to keep the home, is there any reason why I may not be able to afford the payment in the near future?
3) If I want to sell the home, what is my reason for needing to do so? (Your Hardship)

There are other questions/answers that will help you make the best decision for your particular situation. If you need assistance from a group that specializes in short sales in the DC Metro Area, feel free to contact us.
We can offer you a no obligation consultation. In the meantime, feel free to visit our website and see the Short Sale tab for frequently asked questions.

We wish you the best.

Thanks & God Bless,

Tyra

Tyra N. General
Real Estate Consultant|Short Sale Expert|Luxury
Keller Williams Preferred Properties
d: 240.706.SOLD (7653)
o: 240.737.5000
tgeneral@athomewithtyra.com

IMPORTANT NOTICE:
Tyra General & Associates of Keller Williams Preferred Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Web Reference: http://athomewithtyra.com
0 votes Thank Flag Link Thu Apr 28, 2011
My loan is a balloon ARM 7.9% and we can't refinance our home to a fixed rate, because we are underwater.
0 votes Thank Flag Link Fri Apr 15, 2011
I can short sell your house if your very low on money..are you in hardship or not? the bank will look at you last two years and to the month income.. if your mortgage is late of more than 50% of your income and your savings ar depleted or locked in 401 retirment- I can short sell your home.
Web Reference: http://joeschiller.net
0 votes Thank Flag Link Fri Apr 15, 2011
Hi,

To be honest with you it is hard to give you a complete answer without knowing your entire situation.
However, what the BOA loan officer said to you may be true. Here are a couple of things I would definitely ponder:

1) Do I really want to keep the home or sell?
2) If I want to keep the home, is there any reason why I may not be able to afford the payment in the near future?
3) If I want to sell the home, what is my reason for needing to do so? (Your Hardship)

There are other questions/answers that will help you make the best decision for your particular situation. If you need assistance from a group that specializes in short sales in the DC Metro Area, feel free to contact us.
We can offer you a no obligation consultation. In the meantime, feel free to visit our website and see the Short Sale tab for frequently asked questions.

We wish you the best.

Thanks & God Bless,

Tyra

Tyra N. General
Real Estate Consultant|Short Sale Expert
Keller Williams Preferred Properties
d: 240.281.9219
o: 240.737.5000
e: tgeneral@athomewithtyra.com
http://www.athomewithtyra.com

IMPORTANT NOTICE:
Tyra General & Associates of Keller Williams Preferred Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
0 votes Thank Flag Link Fri Apr 15, 2011
Hi Mmedina,

BOA will want to see a hardship like job loss, ecreased income, increased debt (such as medical). In other words they want to know that you cannot afford your payment. If you can afford it then you likely won't be approved for a short sale. There are millions of home owners in your same position. Not a fun place to be.
0 votes Thank Flag Link Fri Apr 15, 2011
Yes, you can short sale your property. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Fri Apr 15, 2011
There seem to be two questions here.
1. What are your options? (a) deed in lieu, (b) short sale, (c) temporarily lease the property (at least you still own it), (d) refi if the mortgage is no greater than 1.2 times the current value (for a house that is $100k underwater that seems unlikely, but it could work in higher end markets), (e) continue to live there and pay the mortgage, (f) sell and make up the short fall yourself.
2. Can you short sell if you can afford the payment? Yes - there are plenty of hardships, you just have to choose one that fits your situation. If you're moving b/c of a job, for example, you would fit into the 'relocation' hardship. If you have assets and/or sizable monthly income, you may be asked to contribute to the investor's loss through a promissory note after closing, but that's up to the parties to negotiate.

Hope that helps. We negotiate short sales all over the country, in case you decide to go that route. Happy to chat further over the phone as well.
0 votes Thank Flag Link Fri Apr 15, 2011
I would recommend discussing your situation with a real estate agent qualified to handle short sales. I think you will be in a better position to understand your options.

Charles Lancaster
Exit Right Realty
240 554-4093
charles@exitrightrealty.com
0 votes Thank Flag Link Fri Apr 15, 2011
Dear Mmedina369,

I'm sorry the bank wouldn't approve the modification for you. You're in a very difficult position now. If you can look at it as a business decision, that it doesn't make good financial sense to spend more money than the home is worth. I realize we have emotional ties to our homes; however, if you can remove your emotion from the equation, I'd suggest short selling it. If you'd like more information on how that impacts you, or how to make certain you select an agent that is certified, experienced in Short Sales, and has a strong enhancecd on line marketing plan of for your home, please feel free to contact me.

Regards,
Ariana Loucas
Keller Williams
301 728-1418 / 443 600-8000
0 votes Thank Flag Link Fri Apr 15, 2011
If you make the amount of money to pay the mortgage every month, the best thing to do is just keep on paying it and ride the wave for few more years and you should be ok. Real Estate goes on cycles goes up and down many times.
In some areas of the market I work at we are already seen a slight change up in the market.
Know that one of the main things you can be modified or request a short sale is if you have a Hardship.

Are you losing your job any time soon? do you have to deal with a situation so big that your financial situation will be drastically changing and that in turn will cause you to not been able to make your payment?

If so then you may be able to short sale your home, the short sale process and the Modification process were put in place to help people with a real hardship. Trust me I had have many, many clients on the short sale side that had used any and every resource to save their homes and since they could not avoid it, they had to short sale, now lets look at the things you must endure on a sale.
"Keeping in mind that you try your best to keep your home and you could not"

1. People you don't know coming to your house in an out at any time of the day and week. ( granted you may be able to schedule the showings, but by doing so you run the risk to foreclosure, because of not having enough showings to get the right buyer on board) and limit your self to less clients visiting your home and putting offers.

2. After getting the right offer you have to face the fact that you need to look for a new place to move few days prior the closing of your home. (keep in mind you need to sale your home otherwise you may be getting foreclose).

3. Once offer accepted it could take up to 6 months for the bank to answer back and accept the short sale( now when they give you the Green light to sale you have to go and move as fast as you can ).

4. Some times due to the length of the short sale you may lose a buyer or 2.

For the people that are suffering and every night wondering if this is going to be the last night on their house and not knowing if they are going to be evicted now or tomorrow, or what is going to happen next then yes! I recommend a Short sale because it gives you some what control over the situation and peace of mind until the process is done, and if you have a good agent in your side then you have it made.

But if you don't need it why go through all that and then some in the first place.
I hope this helps.
Hugo
Good luck.
You can contact me if you have any more questions.
0 votes Thank Flag Link Thu Apr 14, 2011
There is more than one qualifier for being able to do a short sale. I recommend you contact a Certified Short Sale specialist in your are to discuss your options.
0 votes Thank Flag Link Thu Apr 14, 2011
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