When you do not pay as agreed, the lender with whom you take the debt out has a right, I believe, to document the debt as a charge-off which means they wrote the debt off of their books. I am not sure if you can get this removed, however, I would contact Continental Credit - Justin McKee and ask his opinion on whether he believes this debt can be removed.
Continental Credit, LLC
Customer Support: 866.488.2066
You can do a regular sale if you have remaining equity. You'll be able to preserve your credit in case you still need it. If you try to short sale, you'll likely get declined with your currently cash position. And, you can't foreclose on your home, which can only be done by your lender.... more
What you are describing could be considered a 'buy and bale' which is a form of mortgage fraud.
A short sale will require (in most cases) a financial hardship which would be hard to prove if you have sufficient assets to pay for a home in cash.
Have you considered renting to put some time between your new purchase and a final decision on the disposition of this home?... more
Yes, you should contact your bank and begin the short sale process .Ultimately, your home will need to be listed and under contract for the sale to be approved. Your agent will assist you with the negotiation of the contract of sale and then the entire package will be submitted to your mortgage holder for final approval. This process can take several weeks to several months depending on the completeness of the package that is sent and the bank that you are negotiating with.
Make sure to do your research and use an agent that is experienced with short sales to list your home. The agent that is handling the sale will make or break the deal. Also, you could still be held responsible for any short comings between what you owe and the sales price so please be sure that your agent negotiates a full release. You may be asked to bring some monies to the table in order to do this.... more
Its very difficult to determine from the information that you sent, what the situation might be. I would suggest you speak with your agent and 1. emphasize your the urgency in selling your home 2. determine what has been working well 3. talk about the traffic (if any) that is coming through your home and any comments.
FYI, your credit is not a relevant factor in this transaction.
Best of luck.... more
Typically I don't have bank attach assets specifically on our clients. If there is an LLC or self employment income that is reflected on a profit and loss statement or tax returns, the servicer, investor, or possibly the MI company will request additional cash at closing to release the liens and approve the short sale. It all depends on the hardship case, the income for the sellers, and what kind of expenses are necessary and being paid from the income.
With an LLC, it will certainly help if there are other partners involved that are outside your immediate family, and depending also on your partnership split arrangemnent for share of the business.
Attaching assets will be more of an issue when judgments get filed if the home forecloses and the lender pursues the balance of monies owed after the home is sold at auction. Tom Hinz... more
It may be possible. There are a whole list of questions that come with your question. The first issue, right off the bat is what is your "hardship"? Without that, you can';t even get started.
If you like, I can have my team evaluate your situation at no cost to you. This is a specialized team of bankers and attorneys that will negotiate with the bank on your behalf. Again, this costs you nothing as they get paid by the bank. I would be happy to discuss this with you further if you are interested.
It's more difficult but it can happen.
More importantly, if you find a way to get the bank to accept the short sale without missing a payment, you can qualify to purchase right away under FHA guidelines
If you miss any payments, there will be a 3-4 year waiting period before you can qualify for financing depending on the type of loan you're applying for.... more
The first thing to do is to contact the collections department at Chase and ask to speak to the loss mitigatin department. Tell them the circumstances, mentioning that you've had the house on the market over1 year, no offers, nothing is selling, and ask them what they would like you to do since you can't afford the payment.
You could try to lease or rent with an option with the sale occuring in a few years (gives the buyer an incentive who really like the house) or you could ask Chase for a loan mod, or interest only pymts while you try to sell.
How far behind in your payments are you?... more
Are you working with a REALTOR? If you had someone on your side that has experience dealing with the bank, you might have better results. However, I have personally found the short sale business very difficult. I think that Deed in Lieu might be easier, however, I am not sure of the legal ramifications. I would seek legal & financial advice before I signed my house over. I would also ask the bank what happens next...will they file a deficiency judgement against you for the difference in what they collect for the property and what you now owe? Or since you are making the foreclosure process much easier for them and less costly, will they work out a better deal for you? Make sure that you get everything in writing from the bank and that you know what your responsibility would be (if any) once they take possession of your property.... more
First thing you should do is see if you can qualify for the Gov't Making Home Owership Affordable Plan to get you loan modified in the 2-3 % range to lower your payment. With a Chase loan mod, the bottom rate wold be 3% for the Gov't plan, it is 2%...your rate will depend on your monthly balance sheet of income and expenses to see what you qualify for. By default, Chase will try to qualify you for the Gov't program before their own.
If that doesn't work or you don't qualify for the loan mod, you should pursue a short sale only if you and your wife agree that moving is what you want to do. Short sale approvals are contingent on the BPO value and the amount of discount off of that value by the investor - FHA.
If you have questions, go to my faq page for more information or shoot me an email for clarification.
Tom Hinz... more
Ellie, your best bet would be to talk to a short sale specialist. I have one who does this on a regular basis -- and she can advise you well.
If you are unable to make payments on your mortgage and need to sell to make it out from underwater, then you should be eligible.
Please let me know if I can help you further.
I wish you much luck!
Keller Williams Excellence... more
Most Realtors need a licensed contractor to do the work for them. If you are licensed and insured then you can contact you local agents by letter, networking, referral, contact the agent that you used on your home purchase, stop by the office. You have to sell yourself. References are good.However, keep in mind most of the agents that have been around awhile have one or two people that they have come to depend on. It is not easy getting into that circle. You need to be willing to do what they need done and when they need it done. The problem most of us have had, is a person who will start then they don't show up for several days, or they never show up, they don't return phone calls etc. Our business is a time is of the essence business and quite often the jobs are not that big. If you are not willing to do that, then maybe Realtors work is not for you. If you are good at what you do and look after the agents who give you work then work will come to you. Good luck!... more
Well this is a typical Short Sale, except you moved in, which I don't like.
80% of Short Sales fail to close. There`s no such thing as free. I hope you didn`t give the seller any money, security, or escrow deposit. What did you sign?
I have no idea why any Realtor would put their client in this type of situation, However I don`t think there are any Realtor involved.
"Two months have passed since the home seller began negotiations with the bank for a short sale (because the home's appraisal came in lower than our offer price). "
"the home seller began negotiations "????
Why, would you move into a home that has not appraised? The best deal you can get is the appraised price, and in today's market that ain`t such a great deal.
Are they letting you live there rent free, because you are over paying for the home?
Yes rates have spiked in the last 8 business days, you can ask your lender for an extension.
If they will not give you an extention, find a new loan officer.
If, is really when, the home forecloses. A sign will be posted usually on the door, announcing the foreclosure, it will have a date for the auction. You should have at least a months notice.
My advice to you is be ready to move. Don`t give the seller any money, or sign anything. Keep looking for your new home. If you don`t have a great Realtor, get one.
Good luck, Keep me posted.
Your best bet, in my humble opinion, is to consult an Attorney. If you cannot afford one you may be able to qualify for free legal advice from a pro bono offering. Here is a couple links that may help:
http://www.freeadvice.com - or.... http://forum.freeadvice.com may be good.
Personally, I would rely on Countrywide's advice and contact your second lien holder. I have two loans with Countrywide and know a couple of their local agents personally. The second lien holder has the opportunity to also buy out your first lien if they so choose, but it seems unlikely that they would accept only $3,000 for their $99,000 loan. Have you thought about Bankruptcy protection? You will find that most Attorneys who do Bankruptcy will give you some free advice as an initial consultation.
Have you thought about renting out your home? In most cases the rent would not cover the loan payments but you never know. It works for some people.
Best of luck... you are not alone. A lot of people are facing the same dilemma.
This is what is required of borrower before a Loan servicers agrees to short sale.
1. Actively market the property for 3-6 months
2. Personal financial information for analysis (In depth Interview)
3. BPO or full appraisal
4. Listing agreement, contract, and estimated HUD settlement statement.
Tuan, have you completed the above listed items ????... more