The thing that pops out at me first is that you said you got an FHA loan. If the home was an FHA insured home then they will ONLY pay 1% towards buyers closing costs. I dont know your sales price but see if that fits.Other than that, there are many things that could have caused this. Tooo many to go over here. Short sales are difficult and congrats to actually getting to closing though.( I am curious if the math works to the 1%)
In order to best protect yourself and any other assets you have, do consult with an attorney before making any decisions...if hardship can be proven to the lender, a short sale may be an option over foreclosure, however if worried about your credit, it will be affected....again, consult with an attorney.... more
You can short sell your current home. The short sale will negatively impact your credit and will likely make purchasing a new home, after the short sale, something that you wouldn9;t be able to do for a few years. Plan on renting until the credit getts cleaned up.
Sorry to say, but you do need to know it.... more
Are you loosing your home? What happens is first the bank will notify you that you are in default of making your payments. Then I believe they notifiy that you are in foreclosure (3 months behind), after that the property goes to the sheriffs sale at which it is sold (usually the banks buy the property for what is owed on it but a person could bid higher and then be the owner), after the sheriffs sale depending on your state, in Michigan the person has 6 months to redeem the property (meaning they can pay all the fees, catch up on payments) or if it is on more than 3 acres you would have a year to redeem it. During this redemption period if you move out of the house, the bank will find it abandonded and move forward with trying to get it listed sooner, if you have it listed you can actually live in the house, keep up the utilities and not pay a house payment for the 6 to 12 months. Does this answer your question?... more
Laurie, Send me your contact info and i'd be happy to set you up on a search that will provide you with the bank owned and foreclosed properties listed for sale. When we talk i can also show you how to find foreclosed and properties in pre-foreclosure situations. email me at firstname.lastname@example.org
Kathy. A short sale is a very difficult process. I would recommend that you contact an attorney at law to get legal counsel regarding the process. If you have additional questions you can contact via email at email@example.com... more
Hi Kathy. Sorry you are finding yourself in a short sale situation. The first thing you have to do is contact your lender and find out what their short sale requirements are. Each lender requires different documentation, but all of them require a hardship letter in which you explain your situation. Many lenders have a short sale package that contains everything that they'll require. Some lenders will not provide you with the short sale package unless there's already an offer on the house. While I am not saying that you can't legally conduct your own short sale negotiations, I would highly recommend that you don't attempt it. I have nothing to gain from telling you this as I am not even in Colorado. I have negotiated short sales for clients and I know that they are very time consuming and frustrating and there's a lot to know over and above what's normally involved in real estate transactions. I could not even begin to describe all the possible pitfalls. Short sales take a long time and if you are facing the possibility of foreclosure, time is not on your side. There's no time to try to do it yourself and then find out that you couldn't do it while the foreclosure clock keeps ticking. I would highly recommend that that you hire a real estate agent with short sale negotiation experience. Unless you don't care whether the home goes into foreclosure, you really don't want to learn how to do a short sale as you go. As far as I am concerned, there's just too much at stake. Good luck.... more