All of the answers given here are good ones. There is an alternative however that you should at least take a look at especially if you have been turned down by your lender for short sale. http://www.MortgageReliefSolutions.com
Sorry...allow me to rephrase...
The truth of the matter is that a short sale can hurt your credit almost as much as a foreclosure. The lender I work with is able to finance via FHA 3 years after short sale or foreclosure with a credit score as low as 580. My investor looks at short sales and foreclosures as having the same stigma...other lenders have different guidelines.
Thank you Angeline for providing great information about short sales, but Tracey has been turned down for a short sale & asked if she should stop making mortgage payments. She is looking for a solution other than short sale...should she continue to be apart from her husband or let the house go? I was simply trying to convey that she's between a rock & a hard place.
Tracey - it sounds like Angeline will take great care of you and be able to get you in a new home very fast! :)
Your information couldn't be further from the truth! If you are foreclosed on it will be much worse than negotiating a short sale.
Sellers who have sold short sale CAN and HAVE qualified for a loan within 1yr of the short sale. I know this because I have already sold homes to my short sale clients. It really depends on the type of loan you had. If you had a conventional loan you can qualify within the year, if you had a FHA or VA loan it may be 2 years. Of course you will need a minimum credit score and income but you CAN qualify for another home! In fact there are some lenders that are willing to work with you. Here is a copy of the email I just received today from a local lender...
Security Mortgage Corporation recognizes how the recent downturn of the economy has caused many credit-worthy individuals to lose their homes to short sales and watch their credit scores fall. Many were victims of lost income and plummeting home values.
SMC has decided to address this issue by treating short sales on a buyerâ€™s credit report in a more positive manner.
With our USDA RD Program, we do not treat the missed payments prior to the short sale as negative credit. More importantly, SMC does not treat short sales as a foreclosure. There is no required seasoning. A short sale could have occurred last week or last year. We do need to be concerned about obtaining a clear CAIVRS which we will order. In addition, we need to require an adequate letter of explanation (LOE) for us to issue a credit waiver. Examples of acceptable LOEâ€™s would be loss of employment, reduction in earnings, health issues, etc.
Loan submissions will be manually underwritten and will need to meet the standard underwriting criteria of Rural Development, which includes FICO mid-scores of 620, meet income limits etc.
Answers like that are the reason why choosing an experienced agent is most important and who you chose to get your information from matters!!!
If you currently have your home listed with an agent I will not be able to help you. However, you do have options and a short sale may still be an option. If you are no longer listed or your agent will allow you to cancel your listing with them I would love to help you. I have successfully negotiated several short sales in the Davison area Sturbridge Dr, Salem Dr, and Fox Run Dr. Just to name a few. I am experienced in negotiating short sales with many lenders such as Bank of America, Wells Fargo, GMAC, Green Tree Lending, Chase, Citizens Bank and First Place Bank to name a few. I do not send my short sales off to a title company. I have accumulated a database of contacts with many lenders where I can escalate important information and get things done. As of today I have been 100% successful at getting approvals from all lenders, including negotiating junior liens. It sounds like you need a short sale superstar and I am just the right person for the job. Call/ text or email me anytime. I am available after hours and weekends! My cell contact is 810-241-2206. Email- email@example.com I am looking forward to the challenge and more than capable of success!
I am an agent who works in southeast lower Michigan. If you're not working with another realtor please give me a call when you have a minute and we can talk about this. I need more info than what you have provided here.
Your tale of woe is falling on deaf ears with the Bank.
Your "need" to have a smaller house and payment are not valid.
If you keep the house, make do with the morgage; when you exit in a few years you will have good credit and a house that is worth at least what you owe.
Doesn't that sound like the best solution?