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Financing in 33073 : Real Estate Advice

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Activity 3
Sun Apr 28, 2013
Barry Dunn answered:
Sam,

I apologize. I thought I was answering someone else's question when I sent you the answer referring to VA loans.

If you owe nearly twice what the condo is worth, a better question is why do you want to stay there? Do you feel like you are "throwing good money after bad"?

As a general rule, banks are more cautious about loans on condos than they are on single family homes. Therefore, the odds are not in your favor when it comes to refinancing an upside down condo.

Upside down owners have several avenues to try:

1) tough it out and pay off what you owe. Stay in the condo when it is paid off. For most people this will not make good financial sense. However if you absolutely love where you live, and you can afford the payments, it could be an option.

2) loan modification - for most this is a long, drawn out, frustrating process, that ends up with a denial letter, but there are a small number of people who are approved. You might be one of the rare people who gets a loan modification that you can actually afford. Failure rate on loan mod applications is 96%, so set expectations acoording. Loan modifications generally do not make financial sense for the lender, so they are reluctant to grant them.

3)Short sale - If you are current on your monthly maintenance dues, you are more likely to be approved for the short sale than you are for a loan mod. Most importantly, lenders PREFER short sales over loan mods and over foreclosures. It makes the most financial sense for them. Some lenders, like Bank of America, offer incentives for sellers doing "cooperative short sales" anywhere from $700 to $15,000. Many owners qualify for a $3,000 moving incentive when selling as a short sale under the Home Affordable Financial Alternative act.

4)Deed In Lieu of foreclosure - While not as desirable as a short sale, this is better than a foreclosure.

5)Foreclosure - We are doing downwards in terms of desirability. Foreclosure comes with a host of problems that most owners are oblivious to. For a few jaw-dropping articles on foreclosure, Google "video the home is gone but the debt lives on wsj". Then google: "the lastest foreclosure horror the zombie title". These are the kinds of issues walk-away owners are not aware of, but you should be if you are even remotely considering foreclosure as a solution.

6) Bankruptcy - Since you have a pay a lawyer to process the bankruptcy, this may or not be an option for you.

You can find links to both of the news stories mentioned above on my website, as well as additional information on short sales vs. foreclosure. visit: http://www.FTLshortSale.com

Feel free to contact me if I can help in any way.

Barry Dunn
954-298-1650
realtorbarrydunn@aol.com
BarryDunnGroup.com

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Sun Apr 28, 2013
Barry Dunn answered:
The is a question that is best asked of a mortgage lender, not a Realtor. I will be happy to refer you to one of the excellent lenders in our area.

As a general rule, backs are more cautious about loans on condos than they are on single family homes. Therefore, the odds are not in your favor when it comes to refinancing an upside down condo.

Upside down owners have several avenues to try:

1) tough it out and pay off what you owe. Stay in the condo when it is paid off.

2) loan modification - for most this is a long, drawn out, frustrating process, that ends up with a denial letter, but there are a small number of people who are approved. You might be one of the rare people who gets a loan modification that you can actually afford. Failure rate on loan mod application is 96%, so set expectations acoording. Loan modifications generally do not make financial sense for the lender, so they are reluctant to grant them.

3)Short sale - If you are current on your monthly maintenance dues, you are more likely to be approved for the short sale than you are for a loan mod. Lenders PREFER short sales over loan mods and over foreclosures. It makes the most financial sense for them. The fact that you have an equity loan complicates this a bit. If the first mortgage and the equity line are with the same back, that could help speed up the process. Some lenders, like Bank of America, offer incentives for sellers doing "cooperative short sales" anywhere from $700 to $15,000. Many owners qualify for a $3,000 moving incentive when selling as a short sale under the Home Affordable Financial Alternative act.

4)Deed In Lieu of foreclosure - While not as desirable as a short sale, this is better than a foreclosure. Again, the fact that you have both a first mortgage and an equity line will complicate this and make it harder for you to get the bank to accept a deed in lieu of foreclosure.

5)Foreclosure - We are doing downwards in terms of desirability. Foreclosure comes with a host of problems that owners are oblivious to. The first would be denial. LOL For a few jaw-dropping articles on foreclosure, Google "video the home is gone but the debt lives on wsj". Then google: "the lastest foreclosure horror the zombie title". These are the kinds of issues walk-away owners are not aware of, but you should be if you are even remotely considering foreclosure as a solution.

6) Bankruptcy - Since you have a pay a lawyer to process the bankruptcy, this may or not be an option for you. However, it might get rid of the equity line. We do not know the amounts you owe or what your condo is worth based on your question.

You can find links to both of the news stories mentioned above on my website: www.FTLshortSale.com

Feel free to contact me if I can help in any way.

Barry Dunn
954-298-1650
realtorbarrydunn@aol.com
BarryDunnGroup.com
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Tue Aug 28, 2012
asked:
In recent conversations, I have found the more increasing need from real estate agents to understand the current residential financing market, and the very few financing options available.…
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