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Answers (10)
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Rob:
Including your contact information in posts is a violation of Zillow's spam policy. Please make sure not to include it in the future. Anyone who is interested in your advice will click through to your profile. Also, this post is over a year old, so the person asking has probably had their need met.
Including your contact information in posts is a violation of Zillow's spam policy. Please make sure not to include it in the future. Anyone who is interested in your advice will click through to your profile. Also, this post is over a year old, so the person asking has probably had their need met.
- sunnyview
- Contributions:25139
HopeAdvice appears to be a commercial short sale company. Homeowners who need help or information about loan modifications/short sales can get free government sponsored advice from trained counselors at MakingHomeAffordable.com here or get more information about the nuts and bolts of short sales here without paying a dime.
- Rob Stewart, "Rob Stewart LC"
- Contributions:168
You don't need to be in default, just able to prove a hardship to the bank to be eligible to short sale. Being "underwater" is not considered a hardship.
How your credit is affected by a short sale is one of the most misunderstood things about a short sale. You can short sale, even without missing a payment, but you will most likely still have it reported to your credit as a "Settlement", or "Paid as agreed for less than the full amount". The average hit to a FICO score is 75 points, but the better your credit, the worst the hit. someone with perfect credit could see as high as a 250 point hit! if your credit is under 580, you may not see a decrease, and in some cases may actually increase (because you are also eliminating debt).
if you have a deficiency is determined by the lender, and their policies. If it is a homestead property, and it's a federally backed loan, there is a good chance the bank will give up their rights to pursue a deficiency.
I'd love to help more if i could, www.HopeAdvice.com is a great resource.
Rob Stewart,
[Contact info removed by moderator]
How your credit is affected by a short sale is one of the most misunderstood things about a short sale. You can short sale, even without missing a payment, but you will most likely still have it reported to your credit as a "Settlement", or "Paid as agreed for less than the full amount". The average hit to a FICO score is 75 points, but the better your credit, the worst the hit. someone with perfect credit could see as high as a 250 point hit! if your credit is under 580, you may not see a decrease, and in some cases may actually increase (because you are also eliminating debt).
if you have a deficiency is determined by the lender, and their policies. If it is a homestead property, and it's a federally backed loan, there is a good chance the bank will give up their rights to pursue a deficiency.
I'd love to help more if i could, www.HopeAdvice.com is a great resource.
Rob Stewart,
[Contact info removed by moderator]
- Ferris Anderson, "fokal728"
- Contributions:50
You don't have to be in default but you should let your lender know before you start the process and allow them to evaluate your suitableness for a short sale. If you are not experiencing financial difficulty, and you can afford your mortgage, even if the loan is worth more than than your home you will not be granted the permission to sale the home short. If at that point you still want to rid your self of the home and or the mortgage payment you can attempt a deed-in-lieu instead of having the home foreclosed upon. Please do not try a short sale without first contacting the lender and seeing if you qualify. If you don't you will waste your time and any potential buyer's time. I offer free [content removed by moderator due to self-promotion]
- Brad Officer, "Jax Realtor"
- Contributions:45
Totally depends on your lender. I've closed Short Sales that were completely current with their payments and I've had Short Sales denied because the owner was current.
To make it even more fuzzy, there are no guidelines or list of banks that require you to be late. Really depends on the banks "negotiator" - who you will never be able to speak with.
Credit issue: It won't trash your credit. As long as you are paying on your other debts on time, you will most likely take about a 200 point hit and then bounce back near where you where within another 6 months.
Deficiency: Your bank reserves the right to try and collect for up to 5 years after the sale (In Florida). Many banks will agree to sign away their right of collection.
No matter what you do: work with someone who knows what they are doing! This link is a complete Guide to Short Sales in Florida.
Good Luck!
To make it even more fuzzy, there are no guidelines or list of banks that require you to be late. Really depends on the banks "negotiator" - who you will never be able to speak with.
Credit issue: It won't trash your credit. As long as you are paying on your other debts on time, you will most likely take about a 200 point hit and then bounce back near where you where within another 6 months.
Deficiency: Your bank reserves the right to try and collect for up to 5 years after the sale (In Florida). Many banks will agree to sign away their right of collection.
No matter what you do: work with someone who knows what they are doing! This link is a complete Guide to Short Sales in Florida.
Good Luck!
- HomeSand.net, "White Picture"
- Contributions:4396
Many people are try to default on their mortgages, however the loan modification or the short sale was not go through, at the end they owe to the banks more than $5k on the late fee and the other fees and got bad credit.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Oh, and it will trash your credit.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Whether or not your loan is a non-recourse loan depends on how the paperwork is written and if your state has laws on the subject. I would check with an attorney in your jurisdiction.
- Mark Bjorkman, "Luxor Dreams"
- Contributions:49
There is no reason for a bank to want to do a short sale if your paying your mortgage. A short sale is for people that have a hardship and unable to pay their mortgage. The bank can still come after you for the rest of the money owed, but I've only heard of rumors of one or two trying. Usually it's just not worth it to the bank to come after you for the rest of the money owed.
You can get a idea of how a short sale vs a foreclosure affects you at
http://palmbeachshortsales.com/short-sale-vs-foreclosure/
You can get a idea of how a short sale vs a foreclosure affects you at
http://palmbeachshortsales.com/short-sale-vs-foreclosure/
Short sale??? Default on Loan???
Can you Short Sale without being Default on your loan? My realtor said I should default on my loan so the short sale process would go quicker, is this the norm? I also need to know how short sales really have affected people, do the banks come after you for the rest of the money and how does it affect credit?
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