FINALLY!!! We received SunTrust's Acceptance Letter!

It seemed like forever, almost 7 months to the day, but we just received the offical ss acceptance letter.  I have a question though regarding our March mortgage payment:

 

We are scheduled to move out on Saturday, March 13th and we’re going to closing on Thursday, March 18th.  It would make sense if we have to pay a pro-rated amount for the days that we’re still in the home for March.  My realtor had pointed out that the final approval letter and HUD 1 numbers are written up and calculated without the March mortgage payment included in it and the approval letter states that:

 “Upon settlement of the short sale proceeds, the mortgage loan will be reported to the appropriate credit reporting agencies as “Settled in Full for Amount Less than Owed.”  However, please note that prior credit and payment history related to this account cannot, by law, be changed.  To the extent that there are amounts which remain due and owing on your SunTrust account after the terms of the short sale or by execution of the enclosed Note, if applicable, those amounts will be considered a part of the settlement and forgiven (i.e. taken as a charged off loss by SunTrust).  There will be no further collection activities associated with any such ‘forgiven’ amount.”

 

So what are we supposed to do in regards to our March payment? We really need the money in order to move out and relocate, but we don't want to screw up our future preapproval mortgage options by missing or paying late because we have never been late or missed any payments.  Does anyone have any information on this?

Thanks!

 

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Permalink Reply by Bryant Tutas on March 8, 2010 at 2:21am
Rhonda. That's a tough question. Your March payment is for February interest. I would also assume you have a 15 day grace period before it is considered late. Normally lenders don't report you to the credit companies until you are 30 days late.

If you have gone this far without missing any payments then why start now? It sounds to me like you are trying to do the right thing. Call Sun Trust and just ask them the question.

Another thing I just thought of is that the payoff letter for the short sale has a "expiration date". This means that the payoff is good through that date. Sun Trust has already calculated the amount of money they want. This would include all funds for the period up to the expiration date of the demand letter. As long as you close on time then you are not late.

****But I am not an Attorney nor do I play one on TV. This answer is just my opinion.
Permalink Reply by Pablo Schenquerman on February 11, 2011 at 4:22am

I also, just got two approval letters from Suntrust today.

The letters include the same language as above for my second mortgage, but for the letter for my first mortgage is a little different:

1st mortgage letter: if applicable, those amounts will be considered a part of the settlement 

2nd mortgage letter: if applicable, those amounts will be considered a part of the settlement and forgiven (i.e. taken as a charged off loss by SunTrust).

 Basically: they deleted the last part (the part after settlement)

My questions are

1- What do they mean by "If applicable"

2- Are they forgiven my deficiency for the first Loan ?

Thank you

Pablo

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