if you've lost employment and are able to show hardship your request for a short will be more warmly welcomed. if you are simply walking away from a crummy investment the lender will be less inclined to play ball.
depending on your facts they may want a personal note as a condition of a compromise.
to get you a proper answer we'll need to know what your long term goal is.
Your other option is to sell the property through short sale - If you'd like contact me by phone or email and I can explain the process.
I agree with Sue. Don't walk away from your home. Find out your options. It looks like you've already talked to your lender, and they weren't able to work out anything for you. But soon you may be able to talk to them again or talk to someone else at the bank, and work something out.
If you are sure you have exhausted any way to modify the loan, then I would definitely recommend short sale over foreclosure. You need to talk to someone who is experienced with short sales, and understands what is involved in listing a short sale and getting it approved.
I would recommend you talk to a few agents before making a decision if you do decide to go ahead with a short sale. Make sure you are picking someone who understands what is really involved.
If you have any questions about your options or help in figuring out if a short sale is the best move for you, please feel free to contact me.
Also you must qualify for a short sale through an impending hardship such as a divorce, job loss, illness, etc. If you feel you may have a hardship that qualifies try to do the short sale. Make sure you find a REALTOR who has experience with short sales in your area.
â€¢ I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.
Borrowers Who Are at Risk of Foreclosure Are Asking:
â€¢ What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?
The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.
The Stimulus package will have lenders changing policies this month in terms which loans they have the ability to modify. And when one person on the staff says no, there is always the chance, through persistence, that the next time they will approve it. And that does not require any delinquencies in your payments for them to consider a loan modification.
Please call me if you want more details on how you can resolve this, and recover from this financial setback quickly rather than having a foreclosure on your credit report for the next 7 years.
And by the way, I don't know many properties that aren't showing negative equity in this market....the dilemma is affording the payments. Lenders are given leeway to write down principal, and/or adjust interest rates with no tax impact, as far as I understand....still waiting to study the actual 1000+ page bill.
David, there is some solutions out there to discuss further.
Short sale your better option have you consider leasing home cover all payments?
You will need a realtor work with short sale property and lender approval.
Sorry to hear all this !