Home Buying in 48423>Question Details

traceym1965, Home Buyer in Detroit, MI

I am in an upside down mortgage and my mortgage company denied a short sale.

Asked by traceym1965, Detroit, MI Thu Apr 25, 2013

My husband is in construction and had to take a job that has him traveling out of state 90% of the year. I have three children and he has been doing this for nearly seven years. My two older children have moved out now and my youngest son is going to college. The only way we kept our house was because my husband is making good income working for the company out of state. I have a good job here in Michigan and I carry the insurance for the family, so me quitting isn't an option. Now that all my kids will be gone - after raising them by myself - I don't want to live in this big house by myself and I would like for my husband to come home. The only way for him to do that is if we don't have this big mortgage payment. I am current with my payments and the mortgage company denied a short sale. We live check to check, so now what do I do? Stop making the mortgage payments?

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Hello Tracy,

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
5 votes Thank Flag Link Fri Apr 26, 2013
Angeline: "if you had a FHA or VA loan it may be 2 years."

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! :)
1 vote Thank Flag Link Thu Apr 25, 2013
Thank you Sue for rephrasing your answer and for the compliment. I understand that Tracey has been denied the short sale. However it has been my experience that a short sale acceptance or denial is not always the final answer. It is all about the details and knowledge of the person negotiating the sale, the seller cooperation, offer, buyer willingness and the document management. What I am saying is that I have had short sales accepted that were once previously denied. To accept the denial as the final answer is to give up. Do not give up, do not stop paying your payments and try again. The reason for the denial may have many factors none of which have anything to do with Tracey and her hardship. She also said she wanted to downsize and did not want to keep the house otherwise I would have suggested a re-modification or HARP program. If worse comes to worse I have investors also that are willing to give second chances to buyers that are unable to qualify for a loan at this time. Like I said before, she has OPTIONS and many of them to boot!
Web Reference: http://www.itshome.org
0 votes Thank Flag Link Thu Apr 25, 2013
This answer is for Sue Curly,
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 buyer’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 LOE’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!!!
Web Reference: http://www.itshome.org
0 votes Thank Flag Link Thu Apr 25, 2013
The truth of the matter is that a short sale hurts your credit almost as much as a foreclosure. Either way you're looking at 3 years before you can purchase a new home with a FHA loan.
0 votes Thank Flag Link Thu Apr 25, 2013
Hello Tracey,
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- reo_pro@yahoo.com I am looking forward to the challenge and more than capable of success!
Web Reference: http://www.itshome.org
0 votes Thank Flag Link Thu Apr 25, 2013
Hi Tracey,
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.

Thank you!
Shelly Masica
RE/MAX Grande
(248) 382-8212
0 votes Thank Flag Link Thu Apr 25, 2013
You have two problems:
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?
0 votes Thank Flag Link Thu Apr 25, 2013
No that is not the best solution, unless you are suggesting that it is better for the father/husband to continue to work out of state and you see him for 3 days, every three weeks, if your lucky! It is ridiculous that families are separated because of the economy! Yes, it was our choice for him to take the job out of state because that was the best solution at the time and it kept us in our house, because otherwise he would have been unemployed and we would have already lost the house. Even if we sit on the house for another 5 years, it still wouldn't be worth the price we owe. Just to give you an idea, the realtor listed the house at $155,900.00 we owe over $220,000.00 on it. 10 years ago it appraised at $260,000.00. It will not appraise that high again for a very long time! We already live check to check, if something were to happen to either of us we have no back-up to fall on and we would lose the house. I am trying to do the right thing before that happens and sell it.
Flag Thu Apr 25, 2013
Have you tried to sell you home?
0 votes Thank Flag Link Thu Apr 25, 2013
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