Home Buying in 48084>Question Details

Jearob586, Home Buyer in 48084

I got a pre approval for a mortgage on a house that is a short sale.I just lost my job but unemployment will cover mortg/taxes. Am I in trouble?

Asked by Jearob586, 48084 Mon Apr 23, 2012

It is only 75K house, I am putting 35K down. The note on the mortgage is only 40K but now I am unemployed. I am collecting unemployement, and have a job offer for 2 months from now making the same amount of money. And have closing costs set aside. Can they disqualify me now that I am unemployed if I can show them My unemployment check covers taxes and house payment? Please advise.

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You most likely will be disqualified because you are no longer employed. However, you indicated you have a job offer. It if is a salaried job, or in the same line of work you may be able to requalify based on this new employment. The lender may require that you start working for the new company before closing, but that could coincide with the timeframe on the shortsale.

The best thing to do is discuss all of this with your lender and your agent and see if there is a solution.
1 vote Thank Flag Link Tue Apr 24, 2012
Thanks so much
Flag Tue Apr 24, 2012
Sorry to see the loss of job.

We had a house listed on sterling heights, the lender called the employer for verification two days before closing and found that buyer lost the job few days ago. This happened early of Nov 2011.

The lender cancelled the loan, the house went back to the market.

Ron
http://www.TheBestMIHomes.com
http://www.AffordanbleMIHomes.com
0 votes Thank Flag Link Mon Apr 23, 2012
I will pay cash if I have to, it will not go back on the market. Just wanted a mortgage on my credit history,
Flag Tue Apr 24, 2012
Your lender is going to have the final say on this one! They will most likely ask you before closing if there has been any status changes, ie. lost of employment. With any Short Sale the "Due Diligence" in bringing the deal to the table could take a few months. I have one that is taking close to a one year. This could buy you some time, however you should be fair to the listing agent and the seller.

Your only other option would be to pay CASH if you can. As the other agents have informed you, if the seller owns the property "Free and Clear" you can go the Land Contract route, however, the third party or bank for this Short Sales will not go with it. They want either CASH or qualified buyers for their Short Sales.

In any case I would have a talk with your agent and your lender for professional advice.
Good Luck with the house and looking for a job.
0 votes Thank Flag Link Mon Apr 23, 2012
Thanks , I appreciate your input.
Flag Tue Apr 24, 2012
Jearob586,

I'm sorry I didn't read your question completely since this is a short sale.
I would still talk to your lender. Has the short sale been approved yet? If not you may have some time.
No this house isn't a good candidate for a land contract. Lease with option might be difficult as well
0 votes Thank Flag Link Mon Apr 23, 2012
The short sale has NOT been approved yet, but its VERY close to what is owed and has been on the market over a year
Flag Mon Apr 23, 2012
Jearob586,

The best thing for you to do is ask your lender. You may have some other options as well.

If the home is owned free & clear by the seller he may want to do a land contract with you.This would mean a higher interest & then when you do qualify for the mortgage, you could convert it to a mortgage.

You could also do a lease with opt to purchase. Again, as soon as you qualify for a mortgage you could purchase it at that time.

You could also have your agent check into a different lender

Hope all works out for you,
0 votes Thank Flag Link Mon Apr 23, 2012
I believe they can deisqualify you! You will be asked to sign documents at closing indicating that there have been no changes in your employment or financial status.

I would suggest you ask your agent to delve into this for you, or call the mortgage company.

Honesty IS the best policy!

You are putting a lot down on this home, so the mortgage company may cut you some slack with some form of written confimation of your new employment status.
0 votes Thank Flag Link Mon Apr 23, 2012
Thanks for the suggestion!
Flag Tue Apr 24, 2012
Yes, you can be disqualified because you are unemployed. Call and talk to your lender directly. They would find out anyway because they re-verify employment prior to close.
0 votes Thank Flag Link Mon Apr 23, 2012
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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This sounds like a question for the lender rep that wrote the pre-approval for you. Good luck!
0 votes Thank Flag Link Mon Apr 23, 2012
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