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Answers (3)
- Celia Butler Home Loan Diva, "At Academy Mortgage"
- Contributions:359
MY UNDERSTANDING -- et al...
Please do double check but I googled and found that Colorado can get a judgment for the deficiency. Try it ---
You also might consider calling the COLORADO BAR ASSOC - ASK for a lawyer that specializes in SHORT SALE / FORECLOSURE ETC and for a very minimal fee you can get an hour consultation -
some lawyers even will give you an hour of conversation over the phone and direction and information. Pick their brain about your rights.
I am hopeful that other contributors will address this.
I find in working with these situations that the mortgage holder wants to know why you can no longer make your payments. What happened? I understand that a person that is doing a short sale cannot benefit in any way from the sale so with that in mind I becomes important to know your financial position at the time of the short sale request.
Many people are doing the sale as a strategy to live free and the mortgage note holders are guarding against this scenario by looking into why you can no longer afford the house (if this is the case).
Personally, I think you will do yourself a huge favor if you kick into a gear of cooperation. Sadly, the people that you are talking to are trying to do their job and meet the requirements that are now mandatory on short sales. I know, I know it is frustrating and truly "crazy making" but at the end of the day we have to work together to get through this. Irregardless you have the right to know what your rights are.
I wish you the best ....
- David Widlund
- Contributions:204
They want to know that you need to get out of the house because you can't afford it. If you are just leaving because you're unhappy about the equity you have lost, why are they going to approve the short sale? A short sale isn't meant as a forgiveness of your debt. It is meant to help someone who has lost the financial wherewithal to continue making the payments to avoid a foreclosure by selling it for a slightly reduced cost. Your contract with the lender doesn't say "if real estate values go down, we will gladly make up the difference for you". They want all of the money they loaned you plus interest, not 65% minus fees.
If you lose the house to foreclosure, the effect on your credit and the ability to borrow for many years ahead will be ruined. If you have a short sale, there is a negligible effect on your ability to buy in the upcoming years. So although they might get more for it in a short sale, they also know that you are harmed much more by a foreclosure, and they want to discourage people from just giving up on a house that they can still afford to make the payments on. So, if you cannot afford your house, it shouldn't be any issue giving them your financials. If you are just leaving your house because you don't like how much the value has gone down, you may just have to suck it up and take the foreclosure.
CHFA doesn't refinance their loans, unless you have the money at closing to pay them back for the down payment assistance they gave you when you bought your home. CHFA borrowers have to go through a Home-buyer Education class prior to closing on their loan. In the class they explain how you are receiving your down payment from them, and they will not allow you to refinance the loan without paying them back. If you keep the home, you don't have to repay them for that assistance. But if you want to refinance, you have to pay it off at that time. So it shouldn't be a huge surprise when they don't offer to refinance it for you.
In any case, you have to send them your financial information in order for them to approve a short sale. Every short sale I have known of has had to do the same thing.
Good luck!
If you lose the house to foreclosure, the effect on your credit and the ability to borrow for many years ahead will be ruined. If you have a short sale, there is a negligible effect on your ability to buy in the upcoming years. So although they might get more for it in a short sale, they also know that you are harmed much more by a foreclosure, and they want to discourage people from just giving up on a house that they can still afford to make the payments on. So, if you cannot afford your house, it shouldn't be any issue giving them your financials. If you are just leaving your house because you don't like how much the value has gone down, you may just have to suck it up and take the foreclosure.
CHFA doesn't refinance their loans, unless you have the money at closing to pay them back for the down payment assistance they gave you when you bought your home. CHFA borrowers have to go through a Home-buyer Education class prior to closing on their loan. In the class they explain how you are receiving your down payment from them, and they will not allow you to refinance the loan without paying them back. If you keep the home, you don't have to repay them for that assistance. But if you want to refinance, you have to pay it off at that time. So it shouldn't be a huge surprise when they don't offer to refinance it for you.
In any case, you have to send them your financial information in order for them to approve a short sale. Every short sale I have known of has had to do the same thing.
Good luck!
- Alisa Hagner, "AlisaDenver"
- Contributions:381
If CHFA is your servicer, then they want to make sure you are no longer financially qualified for your loan. FHA has a pre-foreclosure sale program. If sold within 90 days of approval you can get check for $1500 for your cooperation and relocation.
Options include:
1. Foreclosure
2. Deed in Lieu of Foreclosure
3. Loan Modification
4. Forbearance
5. Short Sale
6. Sell and bring money to cover the shortfall to closing.
I have a lot of experience completing short sales in this market.
Options include:
1. Foreclosure
2. Deed in Lieu of Foreclosure
3. Loan Modification
4. Forbearance
5. Short Sale
6. Sell and bring money to cover the shortfall to closing.
I have a lot of experience completing short sales in this market.
Why would CHFA have to approve my financial status to see if I qualify for a short sale?
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