Actual events as they occurred:
1. Lost my 50,000 17 yr job
2. 11 months later still unable to find a job (applied for 345, interviewed for 32)overqualified,under qualified, would not consider me for job making less as they figured I would leave after economy got better, who knows but that will take a long time. I professional interviewing, successful testing all went well, many times it was between me and another (so they said) always got the less expensive one, not that I was against working for less, but like I said, afraid I would leave and waste training $$'s.
3. 10 months later I called my mortgage co. just to tell them my October payment would be in on Nov 03,2009
as I had to wait for my husbands paycheck to add a 100. to what I had.
4. Nice mortgage company rep. said during the phone call mention in #3, "a new modification program is being offered to people having trouble making there payment due to loss of income as long as one person on the loan is still working.
5. She asked me my household income/debts.
6. She said we qualify to skip 2 payment (Oct and Nov) and lower our payments by 250.00 a month.
7. I accepted and since I had the cash on hand to cover Decembers new payment amount I paid the December payment right there on the phone November 03,2010.
8. Woo Hoo I even had a few dollars to get some groceries.
9, Received the paper work from the bank explaining the deal as the rep. described and filled the order of documents. I was advised to fax these documents that would verify the income /debt as noted in the conversation mentioned above.
10. Called the mortgage company verfified items faxed were received 3 days after sending
bank statements 60 days, paystubs for my husband 30 days, unemployment income verification for myself, hardship affidavit, income tax for 2 years. 23 page fax. Yes they were rec'd and modification would be signed, sealed in 30 days, per the rep who verified documents were recd.
11. I called mortgage company 40 days after sending in documents to be sure all was completed as discussed. Mortgage company said, no they are overwhelmed with modification request and could take up to 90 days to complete, Ok no signs anything was going anything but good except taking a bit longer.
12. Continued to make the modified payment amount and called at the 90 days to be sure all has been completed, although I had no reason to think otherwise. Rep advised they are still behind and the notes in the file says No documents recd from customer. Oh the fun begins, WHAT do you mean, I verified they were recd months ago, Oh yes they were but since it has taken this long to review your request we need updated documents.
13. I gathered updated paystubs, and bank statements, faxed and verified recd nothing else was any different as income tax yr had not chgd, and affidavit was singed previously. (faxed the entire file including updated documents as requested. We are now in March, rep advised keep making the modified payment amount until the modification is completed. OK
14. Got a call in May from Mortgage company who advised our modification was denied due to lack of documentation recd as requested. WHAT?
15. This rep mentioned in 14 above, said you have a few choices if you want to stay in your home, ha?
He said we are now 2 payments behine (the 2 they allowed us to skip in the beginning of the modification)
2700.00, the 6 months of 250.00 (difference in modification amount ) 1500.00 plus late fees for the 2 skipped months and each 6 month the 250 the payment was short by 250.00. 70x8-560.00, legal fees, filing fees, total of 6855.00 due not to stay in the home. WHAT?
16. My options offered in this phone call while I am still in tears and shock. Deed in lieu of foreclosure, 2 short sale, or pay them down payment of 3500. now, and each month pay 1800. (500.00 increase from the already hard to reach original payment amount.) Even though I knew no way in hell I can pay 1800 a month and I didnt have 3500.00 down payment I allowed him to go thru with me on the phone my debt/income he said oh well even if you do have the 3500.00 you dont qualify to pay 1800.00 a month, so your only options are deed in lieu, or short sale to avoid foreclosure. I told him I would have to speak to my husband and get back to him. Said all this while in shock, ready to be sick.
17. I talked to my husband that night and guess what? He blamed me for misunderstanding, not faxing in the documents, of course it had to be my mistakes, first night in 28 yrs I slept at my moms house.
18. same process over again until september when they advised sorry in foreclosure cant take your payment
19. house is up for short sale to avoid foreclosure. Now who committed fraud. They sold my mortgage 3 times since. They say ok to sell house for 107,000 although I owe 154,000 but can work with me to keep it.
Fast forward to today. I have the opportunity to receive funding to offer to buy the home at itâ€™s current value but no more than that. A recent appraisal shows the market value of my home is 60% less of the balance of the lien. Iâ€™m not obligated to repay the mortgage because I didn't reaffirm. Just staying in the home and paying only interest at a very low rate. I would love to stay in my home especially if I can make an offer myself to satisfy the lien. Itâ€™s this or walk away and buy something else which Iâ€™d rather not do.
Any thoughts or suggestions on this? I actually consulted an attorney, but I received a short answer of it never hurts to ask. I know the process would be more than just asking. I think I just paid the wrong attorney a consult fee.
Thanks in advance!
I am not sure your interpretation is correct.
In addition to Mack McCoy's remark regarding cash or loan. If you have adequate cash to purchase, then you have the ability to continue paying mortgage payments until your cash runs out. If you don't qualify for a modification, you more than likely will not qualify for any mortgage.
I recall there is a Short Sale affidavit that the Buyer's, Sellers, and Real estate agents , must sign that they are unrelated in any way by Family, Marriage or Commercial Enterprise.
The current owner will not remain in the property after closing as a tenant or have Title transferred to them after closing.
There are several other paragraphs in the affidavit not applicable to this question.
It also states each signatory understands that a misrepresentation may subject the responsible party to civil or criminal liability which survives the date of closing.
I'm pretty sure the bank won't let a seller short sell to themselves.
"According to the Treasury rules, a participating loan servicer must offer the short-sale program to a borrower who does not qualify for, or did not succeed at, a loan-modification under the administration's home affordable mortgage program."
Read the entire article from March, 2010 below.
Your question is a good one and I have previously answered it. After some deep thought and medication- I mean MEDITATION..... I agree to not only give you advice on how to, but give you a step by step guide on how YOU or a friend or family member can help you achieve your goals. I know of and/or heard of many folk that have successfully done what you want to do. Nobody got caught and everybody got the house back and is living da good life.
Remember- its only illegal IF you get caught. Really, its no biggy- they say it could be considered bank fraud, mortgage fraud, wire fraud, etc.
I do not advocate that criminal activity is ok, nor acceptable. I am NOT a lawyer nor do I play one on TV-
I would pursue other options: have you pursued a loan mod? Or does your state offer any homeowner assistance? Here in California, we have a CalHFA program which offers mortgage payment assistance and principal balance reduction to borrowers who qualify. I would see if your state offers something similar.
Best of luck!
I understand that you want to keep your home. having said that No you cannot buy your own home thru a short sale. It is called Defrauding a Lender. It will not be an "ARMS LENGTH TRANSACTION".
To have the short sale done you have asked the bank to see your hardship and agree to take a loss on the money you owe to them.
What you should have done is tried Remodification. Please also check my website and see if you qualify for the HAMP program.
Wish you luck, looks like you really want to keep the home. Its kind of late but you can try.
Certified Distressed Property Expert and Realtor
I think you really know the answer to this question yourself and that is it would be outright FRAUD.
Basically it would be asking all the taxpayers to pick up your tab. All the taxpayers meaning your parents, friends, neighbors and so on.
But let's say that by some miracle you actually were able to accomplish this through a company name or an Alias. The lender asks the seller and all people involved in a short sale including the agent to sign a statement that confirms that there is no blood relationship between the seller and buyer and that the sale is an armslength transaction. Besides, there is a myriad of documents you must submit to do a short sale in hopes to have the deficiency forgiven.
Aside from the obvious moral issue here, in today's internet age that would be a stupid crime. The world knows more about you than you could imagine.
Jason Stevens, REALTORÂ®, GRI, ABR
Graduate Realtor Institute
Accredited Buyers Representative
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Kevin Flynn Realty, Inc.
Cell - 941-662-0379
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Short answer..."no." Once a homeowner requests a short sale for their home, it is not possible for that same person (who just requested a huge concession from the bank) to then purchase the same home.
If you are forced to sell your home short (and you must be "forced" through circumstance to do so), you will not be able to purchase any homes for about two to three years.
Grace Morioka, SRES
Area Pro Realty
Since you have to be approved by the bank for the short sale by showing a hardship.........I'd like to see the expression on thier faces when they see the potential buyer for the home is you!
I mean..what you're saying to the bank is........let me sell for less than I owe, please Mr. Banker take this loss & write it off............and then let me turn around and grab the house back at a lower price.
Have you tried a loan modification?
Since, in a short sale , the seller is still the owner and the one actually selling the home..........it would be an interesting contract showing the seller and the buyer as the same person. Do you really think you can buy the house from yourself??
Also..your credit will be adversely affected by doing a short sale..........it's doubtful you'd be approved for a mortgage, either.
And, as I said at the beginning of this response....if you have any assets to put towards a new home..........you should be putting them towards the debt you already owe. The bank will certainly see it that way, too.
To qualify to complete a short sale, there generally needs to be a hardship involved. If you are currently experiencing a hardship, it is doubtful that you qualify for a new mortgage. So to answer your question, I don't think you can buy your own house as a short sale.
What you may qualify to do is obtain a loan modification. In some cases banks have reduced the rate, added past payments onto your principle bringing past due amounts current, or in some extreme cases even written off some of the principle balance, and restructuring the remainder of your loan at a reduced rate.
I would suggest you look into the Making Homes Affordable Plan online, and then call your lender. There are some companies who offer, for a fee, to negotiate your modification for you. Be very cautious and do not pay anyone for this service up front. In many States it requires a lending license or an attorney to perform this service, so again be very careful if you do no choose to pursue this option on your own.