Is this considered buy and bail or can we short sale?

Asked by Worried7978, Frederick, MD Fri Apr 12, 2013

We recently purchased a new home on top of our existing condo(Not enough room for our family). We have been in the new home for a month now and have been trying to rent our condo for over two months. In order to get a renter in we will have to lower the monthly rent charge to $400 less/month than what we pay including HOA. I also have student loans coming in. We cannot pay for all these expenses. Would our situation fall under buy and bail if we short sale? Again, we have only been in the new home for two months?

Help the community by answering this question:

+ web reference
Web reference:

Answers

11
brent mendelson’s answer
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Fri Apr 12, 2013
BEST ANSWER
Talk to your current lender first. Explain the situation to them. Can you refinance it to a lower rate? Investment rates are higher though so maybe not. Check and see if the loan is owned by Fannie or Freddie to see if a HARP refinance might be an option.

https://www.knowyouroptions.com/loanlookup
https://ww3.freddiemac.com/corporate/

Check with your lender on this also as the sites are wrong on occasion.

Hope this helps and maybe you can find a way to avoid the short sale.

Thanks,

Brent Mendelson
Senior Loan Officer
1ST Mariner Mortgage
O-240-235-5314
C-301-412-0259
F-240-235-8236
Bmendelson@1stMarinerbank.com
Lending in all 50 states
nmls#111407
1 vote
Ron Thomas, Agent, Fresno, CA
Fri Apr 12, 2013
One of two things;
Either you lied to your Lender about your finances,
Or, your Lender turned a bind-eye to your situation.

This is the kind of thing that started the whole thing 4 years ago.
1 vote
The Lender turned a blind eye then. Just like pre-2008, loan was closed and sold days later. The only place were we erred was the assumption we could rent out our condo at a certain price. Worse case scenario is we deplete our savings making up the difference in rent over time hoping market value has some kind of incredible turnaround...
Flag Fri Apr 12, 2013
Robert Krop, Agent, Frederick, MD
Wed Jan 21, 2015
You will need to discuss the issue first with your lender. Depending, on the situation there are instances that the banks have allowed short sales in similar scenarios. Hard to say without knowing more.
0 votes
Don Tepper, Agent, Burke, VA
Sat Jun 1, 2013
I agree 100% with Ron. Who said you were entitled to a big new home just because you've decided to have children? Harsh, but true. You're responsible for your family size. (And you know what? Two or more kids can share the same room.) And you're responsible for making informed decisions about what you can afford. Didn't you do some rough calculations on your condo payments and what you might get in rent? That's elementary. I'm sure you presented some numbers to the loan officer when you were applying for the new mortgage. You also knew about your student loans. And you knew the condo was upside down.

Maybe a job (or a second job, or a third job, or a job for your partner) is something to consider.

You've gotten a lot of sympathy from some of the other answers here. But Ron said it perfectly: "This is the kind of thing that started the whole thing 4 years ago."
0 votes
Willaim Wood…, Agent, Frederick, MD
Sat Jun 1, 2013
Ron from Fresno is so right, you need to clear the air on this file. Rentals are hot in Frederick , Maryland as are property sales. An accountant would help with your tax losses and how owning these properties will improve your net worth. Student Loan surprise? Your worry may, in fact, be opportunity to improve.
0 votes
Cathy Chapman, Agent, Frederick, MD
Sat Apr 13, 2013
Dear Worried 7978,

I've helped many people in this situation and the bank has done a waiver of deficiency even though they know you just bought a new home to accommodate your growing family. Bottom line is that the collapse of the real estate market was not the fault of homeowners but rather faulty lending practices.

I'd be happy to guide you through the process of a Short Sale and would most likely be able to get your lender to waive any deficiency judgment, just as we've been able to do for countless other homeowners.

Check out my website and click on Short Sales to learn more. Also, please read the testimonials page to learn what you can expect as a client of Signature Home Sales.

Cathy Chapman, Broker Owner Agent
Signature Home Sales
301-514-6839 Cell http://www.SignatureHomeSales.com
0 votes
Rich Homer, Agent, NAPLES, FL
Fri Apr 12, 2013
Talk with your lender first or seek a free 30 minute consult with a local attorney for initial advice. http://www.naplesrealestateguys.com/
0 votes
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Fri Apr 12, 2013
I hope it works out for you. If you need anything else please let me know. Hopefully Fannie or Freddie own the loan and you can still refinance. Pretty sure you are FHA now but wanted to make sure the current loan on the investment home is not FHA. also. Good luck and let us know how it turns out.

Thanks,
Brent Mendelson
1st Mariner Mortgage
nmls#111407
0 votes
Denise Lane, Agent, Frederick, MD
Fri Apr 12, 2013
To answer your question about buy and bail: in most circumstances the lender does take into consideration if property is too small for a growing family and it may be considered part of the hardship. Relocation, job transfer (within so many miles) are also considered part of a hardship situation. Like Brent said, speak with your lender, find out your options, check if possible for a modifiction within the lender (since under water) itself then weigh your options. If all else fails and a short sale is the only option, please feel free to contact me. As someone who has been in a similar situation, I understand how stressful it can be. My goal is to help people, so they may move on to the next chapter of their lives worry free. I hope this is helpful.

Denise R. Lane
CDPE
Marsh Realty
240-529-7483
deniselane@mris.com
0 votes
Worried7978, Both Buyer And Seller, Frederick, MD
Fri Apr 12, 2013
@ Brent Mendelson

I don't know why the response box would not work...Thank you so much. I plan on taking your advice. Our new home loan is a 30 year @ 3.25%. Existing condo is at 5.25% but we could not refi because of the home value being so underwater...
0 votes
Denise Lane, Agent, Frederick, MD
Fri Apr 12, 2013
Hello,

Please give me a call, and I will assess your situation to give you a better idea of your current situation and possiblities. You definitely fall under a hardship, but more information would be needed in order to determine your exact situation. I work primarily with distressed and short sales for my company. I would love the opportunity to speak with you today. If you need any additional info please check out my blog on the Frederick News Post, as I am the exclusive writer on the topic.

I look forward to hearing from you.

Denise R. Lane
CDPE
Marsh Realty
240-529-7483
deniselane@mris.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more