Looking for some input:
First is Chase receiving 100% payoff - 2nd is US Bank- Had the file for 90 days and rejected. Second is receiving 67% of the balance. US Ban rejected saying owner could afford home.
Spoke to bank - Poor attitude, they really dont care. Went higher is by two levels. Bank can care less. Seller has told them it will go to foreclosure. She cannot afford it. Bank is saying her front end DTI is below 31%, it's 29%, the problem is the sellers back end DTI. The seller is $2000.00 a month in the negetative. She is raising two children on her own. No support one is in college.
Thoughts anyone.
I
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Sounds like the 1st may be current? The 2nd needs to have the pressure of a pending foreclosure.... Just a guess....
If her front-end ratio is 29% she can afford it, and if the second is getting 67% after fees, she isn't very far underwater.
Perhaps she needs to BK out those unsecured creditors & keep her house.
Giving away her house only makes her a slave to the credit cards & whatever else is cranking up her back end ratios - they would certainly love to knock down her housing expense, so she can pay them instead - even if she ends up living in a box.
Chapter 7 may not be available to her if she shorts the house. If you're acting as a fiduciary, you really need to consider what is going to be in her best interests.
It sounds like a BK may be in her future whether or not the short-sale goes through, and a BK7 is generally much better for the debtor than a BK13.