Re: foreclosure?

Posted by Henry_CA on June 23, 2007 at 13:50:30:

In Reply to: foreclosure? posted by dave on June 22, 2007 at 21:06:59:

Hello David, from what I know of short sales and that has come from working with a local realtor is that the realtor submits a short pay package which includes a homeowner’s current income (evidencing can afford the mortgage payments), hardship letter, estimate of needed repairs, current evaluation of property value so that the lender may consider accepting a lower pay off amount then what is owed.

The lenders first and foremost don’t currently have any need to foreclose on any more properties. The are responsible for all the cost of homeownership (property taxes, fire insurance, repairs, selling cost, liabilities of having someone injured on their property, vandals, squatters, etc). The have been know to agree to sell the property to a new buyer for less than what is owed. They do insist that the current homeowner not receive a dime from the sale, as they are the ones taking the greatest financial loss.

Other things to consider are some lender will issues the homeowner a 1099 reported as income to the homeowner for the amount they loss on a short sales. Utilizing an experience short sales person, they will ask that the lender not issue a 1099 and ask that the mortgage rating be reported as “ paid not according to terms” versus foreclosure. Causing less of a FICO score reduction on the credit score.

With regards to the lenders pursuing you for any deficiency (loss of money), you will have to as your attorney.

I hope I shared some information that is helpful. Good luck

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