Home Selling in Tampa>Question Details

Jay, Home Seller in Tampa, FL

What happens if you attempting a short sale and the lender see's you are not in any financial hardship?

Asked by Jay, Tampa, FL Tue Jan 13, 2009

My mortgage has ballooned up and I owe 210,000 on a house worth maybe 170,000. I am making payments of 2,400 a month on a 210,000 house that is falling apart. I was 22 when I bought it I didnt know any better. I am only 25 now. The kicker is that i have worked my up in a company and i am making over 100k. On paper I can afford the payments. The house is falling apart and after i make respairs as things break and pay my now ridiculous mortgage payment as well as taxes and insurance i might as well make 25,000. I struggle just to keep my head above water on a 6 figure salary. Does anyone have any advice? Will i still qualify for short sale if the bank thinks on paper i can technically continue to pay?

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The short answer to your question is NO. You will not qualify for a short sale. And, if you lie to the bank to try to qualify, that is bank fraud - they will find out, and you could go to jail. Banks are not taking these things lightly these days.

All homes require maintenance, regardless of age, and not all investments are profitable. The best advice I can give is for you to fix up the place so that you like it, and live there for a few years. If you really are making over $100k per year, you should have way more money than you need to afford a $2400 loan payment. If you don't, you really need to examine your spending habits... Downsize your car, if need be. Spend less on partying or travel, if that's where you're money is going. If you put some real money in your home - carpet, paint, kitchen cabinets, tile floors - all of which does not have to cost very much, its value will return, perhaps quickly, as homes in that price range are selling now.

As for your mortgage, try refinancing your loan.
1 vote Thank Flag Link Wed Jan 14, 2009
Hi Everyone,

Does anyone know about the Pros and Cons Of a 40, 45 or 50 year Loan - You may have heard that there are now 40, 45, and even 50 year mortgages. This type of mortgage can lower my payments so I will be able to afford my current house and rent it out until the better time comes to sell it. I will then rent a house in Lutz or around that area where I want to move to and buy when my current house sells. I was told that no one keeps even a 30 year mortgage in todays times. I don't want to go into short sale and I can do some fixer upper stuff. I know not to accept an early payoff % .
0 votes Thank Flag Link Mon Jan 19, 2009

You might still qualify for a short sale... the only caveat is that during negotiation your bank might request a promissory note for a portion of the balance owed due to your ability to pay.

However at the end of the day it might be less than you think and allow you move into a better situation sooner rather than later.
0 votes Thank Flag Link Wed Jan 14, 2009
I have a very good advice but I cannot write it here. We know, and have helped, several people in your situation.
Web Reference: http://www.tampa-mls.com
0 votes Thank Flag Link Tue Jan 13, 2009
you can check into loan modification if you want to keep your house. if not, short sale would be the way to go. i worked w/ a loan modification company and they were able to help me save my house. the company also offers short sale services/advice and they can help answer your questions as to which would be the better the route (loan modification or short sale) because both programs has its benefits. if you want to call the company, American Modification Services and you can check out their website, http://www.amsmod.com. you can call 888-673-7755 xt 7224. hopefully everything works out. good luck!
Web Reference: http://www.amsmod.com
0 votes Thank Flag Link Tue Jan 13, 2009
You definitely should contact your lender and see about a modification. I would NOT pay a third party any fees, as most are a ripoff, but most lenders participate in one program or another. Also, you say you can barely make it on your salary, that is financial hardship of a sort, enough to get most lenders to make an adjustment. To give a more detailed answer, I would need more info. Is your loan FHA? Fixed or adjustable? It cannot hurt to call your lender and see what may be available.
0 votes Thank Flag Link Tue Jan 13, 2009
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