You are right to be concerned & you should get a second opinion to make sure.
Unfortunately loan officers are not perfect & we sometimes miss things or make mistakes because the guidelines on loan programs change a lot.
FHA & Fannie Mae guidelines require lenders to use one of the following options to determine the repayment amount on student loans:
- 1% of the outstanding balance
- The actual payment that will fully amortize the loan(s) as documented in the credit report, by the student loan lender, or in documentation supplied by the borrower
- A calculated payment that will fully amortize the loan(s) based on the documented loan repayment terms: or
- If the repayment terms are unknown, a calculated payment that will fully amortize the loan(s) based on the current prevailing student loan interest rate & the allowable repayment period based on the balance: IE: Loans of $60,0000+ have a 30 year amortization.
The concern is whether or not your Loan Officer is aware of these changes/guidelines.
Now on to the good news. There is a way around this where just the IBR payment can be used while still qualifying for a conventional mortgage but you need a lender, like me, that knows how to do it.
Take a look at the recommendations from some of my past clients on my Trulia profile by clicking the link below my phone number.
Please feel free to contact me for more information or help.
Senior Mortgage Banker
Lending in ALL 50 states
Great Plains National Bank
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Both schools are good academically.
If you live outside of the busing boundaries for one of the schools, you can still open enroll. However, families must provide their own transportation to and from open enrollment schools.... more
You can if the owner is willing to work with you but keep in mind that the bank doesn't have authority to sell it until the redemption period expires. Now, if the home has been vacant for a while the bank can accelerate the redemption period but you wouldn't know that until the home gets put on the market by the bank since they will not discuss the terms of the loan. Good luck!
A California borrower only has a right of redemption if the property is foreclosed through the court system in a judicial foreclosure. The redemption period is set by the court and is no longer than one year. However, most California foreclosures are non judicial foreclosures and borrowers have no right of redemption in non judicial California foreclosures.
California homeowners usually have one year, or 365 days, to redeem their property after it is foreclosed on. At that time, the original owner will need to make payment in full of the sum of the unpaid loan plus costs one (1) year after foreclosure sale unless the original lender made a full price bid then that period is shortened to three (3) months.
Simon Campbell - http://www.bankforeclosuressale.com... more
I would call them and ask them why they sent it to you. It does seem odd, but they may have inadvertantly sent it to you rather than 'back' to the estate trustee. Worth a call and let us know how it goes. Good luck.
Realtor since 1980... more
Hi Paula, Short sales can be very complicated. The bank is pretty much in charge but doesn't really care to much at this point because they don't have possession. Every bank is different. The seller doesnt usually make any money on the deal so I would venture to say no they will not be paying any closing costs. I would recommend buying a bank owned verses and short sale. There are exceptions of course. If your asking price is close to what is owed there may be some negotiating room. Realtor fees are usually paid by the seller as well, up to 3% to the buyers agent. What ever you do dont get your hopes up to high and expect to wait. Some banks drag it out until the 6 months is almost up.
Best of luck!
PS-You should be working with an agent who knows how this works to avoid suprises or it may not close.... more