Re: Some good foreclosure news
Posted by OC Andy on September 25, 2007 at 19:23:18:
In Reply to: Re: Some good foreclosure news
Posted by Ethan on September 25, 2007 at 16:02:27:
Ethan:
Item #1.
Submitting the loss mit package is a good first step to take towards avoiding the foreclosure altogether. Los Mit departments work independently of other areas of the lender(origination and servicing) so sending them a thoroughly completed package is mandatory towards any type of workout plan.
Keep in mind that the lender is first interested in repayment of the entire remaining principal balance of the loan(s). If that is not possible, other solutions can be put in place, namely, a short sale.
The deficiency issue at this point is moot if your "financial hardship" still allows you to have a steady monthly income and you are able to work out a loan mod or some type of forebearance plan with your lender. If not, then selling the property quickly is your next best choice.
Without knowing your loan balances, FMV of the property, and the type of financial hardship it's difficult to know whether a short sale would be doable in your case.
Item #2:
FNMA and FHA both want 2 years of seasoning behind any foreclosure in order to even consider you for financing. After renting for that period of time and saving towards the down payment you should be golden. Plan on putting considerably more down payment with any future RE purchase.
Fill out the loss mit package ASAP and keep a copy for yourself before you send it to them - lenders will generally work with you once they know that you're trying to save your home.
Good Luck
Follow Ups:
- Re: Some good foreclosure news - Ethan 22:02:42 09/25/07
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- Re: Some good foreclosure news - OC Andy 22:50:41 09/25/07
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