Most of my clients are already several months behind. I have a current client that would really like to buy when he retires (out of CA in 3 years)...therefore he does not want to go late. No income change but he now has to the care of his mother who is having health probes and lives 40 mins away in a nursing home, pay her home payment, bills, meds, etc. He expects next year to be worse w/Medicare changes. ASC 1st (320) wells HELOC 2nd (56) What's your experience w/borrowers that are current. In the past I had clients forced to go late w/government loans and I know that has changed. This is not a Fannie/Freddie. Value of home is about 299k. Any opinions would be great... Love brainstorming w/all you smart short sale agents!

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You first need to find out who the investor is...If it is not an FHA loan and you can document a valid Hardship then there a good chance that they will approve it with no lates. I got a FanniMae short sale approved with no lates with Wells Fargo...so it is possible....good luck...
Just got an approval on an ASC in which the seller never missed a payment ... they're forgiving about $300k on a condo now worth about $150k. No deficiency, no real hardship, no cash contribution. I doubt the Wells Fargo HELOC would go as smoothly.

Our experience is that FHA is still requiring borrowers to be a minimum of 30 days delinquent on their mortgage before CLOSING a short sale in their PFSP. They do not have to be delinquent to start the PFSP process, just by the time it closes, but the servicers we've dealt with won't issue approval until they are 30 days delinquent, even though legally they could, as long as the SS doesn't CLOSE prior to the borrower being 30 days delinquent. On our FHA SS's where the borrower is current, we have them miss their 1st payment once we know we are about to get approval so that closing can occur before they have to miss the 2nd payment. This issue can be explained in a letter to the new lender who is about to issue them a new loan, and substantiated with PFSP Guidelines. The 30-day delinquency requirement is written there.

The other investors we work with (including VA) have a little more common sense than FHA, and don't seem to require delinquency in order to approve a short sale. Good luck!

Hi Stephanie,

I successfully closed on a short sale where my clients never missed a mortgage payment.  They had to re-locate from AZ to Colorado to take care of elderly parents.  They were actually able to purchase another home right away.  They did  not have a second, and their mortgage was with B of A.  It was not a Fannie Mae, or Freddie Mac. You need to make sure this hardship is rock solid, otherwise they may not even give him the time of day, until he has missed payments. 

Confused. Is he short selling his home? Or his mother's? Is he on her mortgage?

I have done it with Wells and been denied by Wells. It depends on the investor. PNC denied it once.

Selling His home... He is also covering his mothers home expenses while she's in a nursing home recovering. Mother is not on his note nor is he on hers.
Thanks everyone for all the info!

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