Some lenders will allow you to do a short sale while you are paying mortgage on time. This way the late payments will not effect your credit. It depends on the investor also. I actually wrote a blog about this earlier this year.
Ok. Got it. Many homeowners are going through the same thing, that bought around that time period. Your best bet is to hire a short sale attorney. The attorney will help you prove your hardship to your bank. Which is what you need to do. Now, financial statement will also be needed to show your bank that you can not afford the loss on your own. Most attorneys in the end are paid by the bank or their fee is built into the loss your bank would be taking. So you wouldn't have to worry about that. I do not service Bayville myself, but my company does. Please let me know if I can refer you to a local agent that can walk you through the process.
It would be the first option you mentioned. We have lived in our home for the last 6 years and when we bought it it was just my husband and myself...now six years later we have three little ones and have completely outgrown our home. We bought in the height of the market and unfortunately now our home is worth approx $50,000 less than what we owe on it. We are current on our mortgage and have never missed a payment since we've owned the home. Just need more space but not sure how to accomplish this.
There are 2 types of short sales. One is when you negotiate with your bank to take the loss on the property. This type of short sale can effect your credit. Therefore effect your ability to buy your next home. It's your best bet to consult with an attorney familiar with short sales. That I can recommend. As well as with an accountant. The other type of short sale would be when you have the funds to bring to the table to cover the loss. This will not effect your credit at all. What type of short sale would you be looking at?
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