Its John P again, one more question but on the opposite side, We of course have a house that is underwater, but current on the payments, and if the inevitable happens-not being able to secure a renter, Is there a "formula" per se that Wells Fargo in this case uses to determine that we make too much money to Short Sale, is there a percentage they use to see your debt to liquid assets. My loan with Wells Fargo is currently with JennyMae, which did not know existed until I called to inquire.
Thanks for any assistance.
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Thanks for all the replys, unfortunately this is not a cut and dry deal and I am sure no deal is,
In looking at our finances, we do not have a large sum of money in savings, its our income.
Safety- We have police reports to substantiate the "safety" issue, now does that mean anything to the lender who knows
As far as percentages
Our Gross income with the home we are moving from and the new perspective home with expenses etc: 47%
without the mortgage of the home we are moving from it is 36%
It's all about presentation and circumstances. I just closed a deal where the seller made 6 figures AND had 300K in the bank. Yes, she had a large cash contribution to settle deficiency (30K) but it was worth it. I also have an approval from a notoriously difficult bank NYCB where the seller has w2 income of over 300K. It is certainly possible, but I would like to review your situation more closely.
www.ssprocessors.com
I also disagree with the notion of having a bank decide whether someone can sell their house. Not to be disrespectful to all those who responded, but this is still America - for the time being anyway - and if you want to sell your house, then you should sell your house. It is not your fault that the market tanked, nor should the bank keep you hostage in a home that you no longer wish to call home. The market value of the home will be taken into consideration using their radius and sq. footage formulas, and the bank will determine what is a fair offer for it. In addition, they will also look at your income, savings, etc. and if you are smart enough to move now, your rent and/or new mortgage will be reflected on the income/expense form - along with any other costs you wish to, or have to, incur. Further, if you have an experienced person handling the short sale, you "may" have to come up with a seller contribution to help appease your bank. As you go through the process, your short sale person should be explaining what is being negotiated and how much, etc. You can then make an informed decision whether you agree to come up with a seller contribution - should that even happen - in order to achieve the short sale approval. It can be done - Good Luck!
I disagree, Safety is a hardship. Send in the crime stats, declare that you cannot ingood conscience rent this out, feel unsafe to go to work and leave your family in the home and you want to sell the property. Local newspapers are generally a good source of crime stats and if this is an area that has experienced a lot of crime over a period of time and you can demonstrate that crime has continuously escalated in the neghborhood, (newpaper articles work well too) you can use Safety as a hardship, I have successfully done it on a number of occassions where neighborhoods have just gone downhill so far that the families do not feel safe to walk around their neighborhoods, kids found empty alcohol containers, used needles, etc.
John P, safety is not a hardship most likely. How much underwater are you? You may just have to bite the bullet and either rent it out and keep paying or sell it and find a way to make up the difference.
I just closed a short sale last week with BofA, FHA loan...sellers hardship was that he was a police officer and was receiving death threats from a local gang. Wife was a stay at home mom with 2 kids.
Lender approved the hardship...no questions asked.
Just never know these days what is a "qualified" hardship until you submit it.
Thanks Tammy for your reply good to know there is a gray area for "hardships" I guess if it came to Short Sale avenue and unable to rent the house, I could request for our county police to provide the history of the calls out to the house and surrounding houses as proof, like I said I would LOVE to rent the house with good tenants of course to potentially sell it when the market ever makes a turn for the better.
In reference to Making too Much, I would like to know if the bank(wells fargo in this case) use a % based upon Debt to Income to consider if we make too much, Heck we may not from everything I have been reading, we don't have the funds in savings or any other source to cover the short fall, just our month to month income could cover it, not comfortably though.
I WANT to rent it, but I just want to know worst case scenario, We owe $168k, and houses are selling for $90k (foreclosures) and that is the only activity around here.
I wish there was an answer to clarify if we "make too much" If there is a % for debt to income to clarify if we make too much.
Also, the home is located in GA, and I did a lot of reading last night on forclosing, like I said I am looking at "worst case scenario" and I want to rent it, and could not get clarification on deficiency judgements in GA, most everything I read noted they are rare, but the deficit from my loan to fair market value is high in my opinion so I have the feeling we would be the exception to the rarity.
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