I have a client that relocated from Ohio down to Texas due to her inability to find a job in her profession. She appears to be a wonderful candidate for a short sale as her dti is now well over 100%, she has zero money in the bank and actually has nsf fees on her bank statement. Anyway I am telling you all of this because BofA actually just declined our short sale soley because she is not behind on her mortgage. Although I explained to them that she is making mortgage payments by taking cash advances on credit cards at this point. They didn't care. They said they simply won't review a short sale unless the owner is behind on payments. I have worked with other lenders, Countrywide included, that would approve subject to missing a payment and I have even had one lender back out the most recent payment just to make it late. Anyone have any suggestions?
Thanks
Kevin
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Tell your client what you were told and give her the options. She can continue to pay and have no chance at a short sale or she can stop paying and re-apply for a short sale. Be very careful not to tell her what to do. Give her the options and let her decide. That will effect her credit and she needs to make that decision on her own. I have had several clients who have asked me what they should do and my answer is alway the same..." I'm sorry but this will effect your credit, not mine, and I just can't tell you what to do." Remember that it takes several months to get a short sale approved which would mean missing several payments. It can cause a big ding in a credit score and in the end there is no guarantee that the bank will approve the short sale. However, if she is using credit cards to make the payment, she needs to consider that the rise in her credit card balances can also have a negative effect on her credit.
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