Home Selling in Michigan>Question Details

JP, Home Buyer in Michigan

Short Sale Denied! What are my options now?

Asked by JP, Michigan Thu Jan 13, 2011

Owe 150k FHA loan and got an offer for 110K. Have to move because I got a job offer four hours away afterbeing unemployed for almost 2 year. I applied for a short sale with B of A and after 6 months they said "No". Appied for a Deed in Leiu and they said " no", asked for a motification and they told me I do not qualify. I even asked if they take the 110k offer, I will pay the balance over the next 5 years and they still denied me. I can not tell you how frustrated I am. I am staying with a friend most of the time closer to my new job and feel like I am out of options. I have never missed a payment through this entire process. They denied me because I have positive monthly income ( 200/month). I do not feel that renting is an option for me, I do not have the ability to keep up two living spaces. I am meeting with a lawyer on Monday but would appreciate any advice......thanks

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Hi Jeff,

There is no reason a short sale should be denied. First of all, missing payments makes the bank take notice. So, being current does not help you. Missing payments is not great for your credit, but the short sale will hit your credit anyway. Even worse, if this doesn't get done right, then a foreclosure will hit your credit.

I would suggest you move, as you want, to be closer to your job. If you can qualify for a loan, go ahead and buy, if you see something you like. If not, just rent. Once you move, your financial picture will be totally different and you will no longer have a positive cash flow. So, once you're behind on payments, and have a negative cash flow, you are much more likely to get approved for a short sale.

Short sales are a long process. You really need an experienced professional to get it done for you. We are closing many Bank of America short sales. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states
1 vote Thank Flag Link Thu Jan 13, 2011
Since you say that you are meeting with an attorney, do ask him/her all your questions and see exactly what options you may--he/she will best advise at this point.
1 vote Thank Flag Link Thu Jan 13, 2011
Thank you for the answers,

B of A switched my negotiator 3 x and then finally said no because we had positive monthly income. It is a strange posistion to be in because if I didn't take the job, I would lose the house becasue my unemployment was about to end. I feel stupid because I felt that the bank would be more willing to work with a good customer who tried to do everything possible to keep my payments up and on time. In the end it didn't matter one bit. I should have just let it go into foreclosure 2 years ago when I lost my job the first time.
0 votes Thank Flag Link Sat Jan 15, 2011
Maybe you should have asked to speak with a supervisor to see if the resolution rep was giving you the most attention you case needs. It normally takes a few calls before you can escalate your file.
0 votes Thank Flag Link Fri Jan 14, 2011
If they declined all your options AND you can't afford keep paying could be give up allow it to go to foreclosure... HOWEVER best confer with an attorney. If the home goes foreclosure does have a negative impact on your credit score .

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Jan 14, 2011
Jeff,

We process and close many short sales, and one thing remains true ... Bank of America almost always do things that defy logic! We just closed a BofA short sale yesterday and it would take me an hour to brief you on that one.

In that particular closing, there was a documented hardship of relocation, and we got it closed. We partnered with a real estate attorney who was further able to see that the pursuit of a deficiency was waived.

SO ... you are doing the right thing in meeting with an attorney. Just be sure they have experience in situations like yours ... and hopefully the agent you have handling the listing has a lot of experience and education in it, also.

Best to you and keep us posted.
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Fri Jan 14, 2011
Jeff,

Generally speaking, if you are making your payments there is no real incentive for the lender to consider other alternatives because in their eyes you can afford the mortgage.

You have done all of the things that we would recommend including meeting with an attorney. Let's hope the insight he/she provides you with on Monday can make a difference for you.

Good luck,

Bill
0 votes Thank Flag Link Fri Jan 14, 2011
Thank you Eli.

It is crazy how making my payments on time did nothing to help my situation.
0 votes Thank Flag Link Thu Jan 13, 2011
Thanks Michelle


I was told I do not qualify for HAFA and the offer of 110K was 6K more than the same house in my sub sold for 2 months earlier. I even told my lended that if the offer was a few thousand short, I would pay it. I basically told them they can have all the money in my savings. All $ 4216.22! I am trying to do this the correct way and minimize my credit hit but they do not seem to care
0 votes Thank Flag Link Thu Jan 13, 2011
Sometimes short sales are denied because of the offer amount. What is your current homes value? Is it worth more than 110? You may want to consider a HAFA short sale and work with an agent that is familiar with HAFA. Even if you have positive cash flow at the moment, you have the option to pursue a short sale based on future expenses that you anticipate in the near future. Are your living expenses going to increase? If you move and rent an apartment you stated you do not have the ability to pay for two living spaces.... I've attached a link below for more information on HAFA, hope this helps.
0 votes Thank Flag Link Thu Jan 13, 2011
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