I have a new listing for a older gentleman who is legally disabled; can't cut the grass or maintain home. Needs to move to assisted living. He did a mortgage modification five years ago and they added a "promissory note" for $8,153.00 to the loan. For that reason, he owes more on the home than its worth and really has to be a short sale...Issue is, he refuses to stop paying the mortgage because he doesn't want to ruin his credit, assisted living community you need good credit.
Mortgage company is Lakeview Loan Servicing. Has anyone had any experience with doing a short sale why the seller is current?
Who's the investor? If he does a short sale while current, his credit still gets dinged big time. It's hit or miss if they allow a short sale while current. It's based on guidelines and if you can show imminent default.
He may want to relocate sooner than later if he is concerned about credit impact.
Really depends on who the investor is. Some of them will do it while current, however he will have credit issues either way. Have him move into the assisted living first, then do the short sale.