Make too much for Short Sale
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.
Replies to This Discussion
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Permalink Reply by Deborah Y Wilson on
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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.
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Permalink Reply by Toni Nicholas on
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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!
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I have not "missed" anything, and I would ask that you re-read my post to clarify my intended meaning. I opened with "I disagree with the notion..." I have also explained that there will be negotiation during the process, and it is up to the seller if the bank should respond with a request for a seller contribution in order to allow the short sale. Apparently, you missed that part. So, next time you feel that you should "correct" me or declare something I've posted as "nonsense," please make sure there is something to correct and make sure you state that your post "is your opinion." Otherwise, I don't take kindly to dictatorial posts, and I will respond kindly.
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Permalink Reply by Jeff Payne on
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OK Toni and Ron, let's keep it civil ,we can disagree without being disagreeable. I can see how Ron read it teh way that he did as I read it in a similar way, that is the problem with this type of communication.
My opinion is this.... safety may or may not be a hardship and that is really up to the person who is handling this file at the bank. For me, there is no amount of money that would stop me from keeping my family safe so if indeed I moved to an unsafe neighborhood and wanted to move I would probably suck it up and find out a way to move and be able to rid myself of the unsafe home.
We always have to remember that in a short sale there can be 4 sides to a story, the "borrower's sob story" the realtor's embellished story, the lenders rule story and the truth that usually lies somewhere in the middle :)
Toni I appreciate your opinion for sure as I appreciate being able to see it from a lenders perspective like Ron's. I have always been very good at short sales but they used to drain all of my energy UNTIL I became fortunate enough to be part of high level lender masterminds. Now I can see their side of it too and that helped me to become a better short sale agent.
Just remember to keep it civil or I as the moderator will have to borrow Bryant's SMITE HAMMER
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Ron do you mind sharing what an exception to the rule might be? An example perhaps?
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Permalink Reply by Joseph Alfe on
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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.
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Permalink Reply by John P on
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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%
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