Replies to This Discussion

Permalink Reply by Gunnar Jonsson on March 1, 2010 at 11:09am

Kevin, Please give me a call, I might have somthing you can use.

Gunnar in Orange Couty California
310-904-7220

Permalink Reply by Tracey Martin on March 1, 2010 at 11:41am

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.

Permalink Reply by Kevin Coffey on March 1, 2010 at 11:46am

Yes that is our plan now. However this means we have to sit on our hands for the next 30 days until she is late. Then as you mentioned, there is no guarantee that they except then although I just find it hard to believe they wouldn't. But you just never know with these banks. My concern is that to qualify for the tax credit a buyer needs to be in contract by end of April and close by end of June. Knowing how slow BofA is, this will put us under a timeline that may be difficult to pull off. BofA will only have 60 days to approve to give the buyer 30 days to close. So this 30 days we are about to waste is crucial. So any suggestions to get around this would be welcomed.

Thanks

Kevin

Tracey Martin said:

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.