I have a client in his mid 60's eligible to retire and can currently afford home but when he retires soon, will not be able to afford home. He is underwater on the mortgage, over $100k and took money out of his 401k $37k to buy the home in the beginning. He also has a medical hardship. WF said they will deny short sale because he currently can afford the home..the seller has clearly laid out his financial hardship and shown that his income will be more than cut in half when he retires, has anyone had this scenario and what was the outcome? Thanks!
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To me it sounds like until the client actually retires it's just 'he said she said' (talk). They might have to actually show proof of retirement on this one.
I recently had a similar FNMA SS with WF. Homeowners weren't retiring, but they had to move due to a medical issue with their toddler. They were current on the mtg and did not evidently have a financial hardship; however, bottom line was that they HAD to move & could not afford to support 2 households. First time I submitted the package, the sale was outright declined in days. Negotiator said FNMA did not see a hardship and borrower could continue to pay the loan. I re-initiated the short sale in Equator & whenever I uploaded any document, I included the hardship letter as an attachment. I also noted ALL comment boxes with the same information. Once a negotiator was assigned, I called her immediately to discuss the hardship. She submitted to the investor and the sellers are approved with a full deficiency waiver, but they had to contribute $3500 cash (which I also negotiated because they initially requested $10,000). Sometimes all it takes is having a fresh pair of eyes look at the situation. Never take the 1st "no" as your response, in short sales, everything is negotiable to a point.
I just had this happen too. Seller 3 months out to retirement, fully documented, Fannie BofA. Got declined as seller is current and BofA says we did not prove "imminent default"...which we most certainly did. We fought it, but were declined. Unbelievably stupid decision by BofA.
Perhaps next month when she stops paying they'll look at it differently.
When exactly is he retiring? Can you produce an official separation letter from his employer with the date? If it's too far out, I can see their point. Is there an active short sale, or did a Wells Fargo phone bank rep tell him that?