Short Sale HAFA if Homeowner moved out and still keeping mortgage current, can this still be approved by lender?
f a homeowner has moved out and rented another home and wants to short sale ,can he still be approved despite his mortgage being current?
Bought home at in 2005 and now underwater and cannot afford the mortgage payments but has been making payments since he does not want to ruin his credit.
Can he still qualify for HAFA with a relocation incentive? He still maintains the house utilities and all.
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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It depends on the Servicer and the type of Loan.
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Permalink Reply by Wayne Brooks on
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Esperanza, the moving out is play, but it depends on what investor owns the loan and if they participate in HAFA. You may get the same terms from a non HAFA short sale though.
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play=okay
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Permalink Reply by Jeff Payne on
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It very much depends on many things. I have my short sale sellers monitor their credit after a short sale and the sellers who have successful short sales without missing a payment have not even seen a blip in their credit. Many of them do not even have anything on their credit report indicating they did a short sale. The sellers who miss payments often see a hit to their credit and depending on the number of missed payments can see a significant decrease in their credit score.
I tend to disagree that a short sale will have the same credit affect as a foreclosure, some cases maybe but not in all cases. I may affect their ability to purchase another home depending on the way it is reported on the credit report.
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Ron what you said was a short sale will destroy their credit as much as a foreclosure will. I have my sellers monitor their credit and rarely do they see their credit destroyed if they are current on their mortgage and many of them do not have it reported on their credit. I agree with you about purchasing at a later date depending on the type of financing.
My point is that you can not make a blanket statement that a short sale will destroy someones credit and compare it to a foreclosure because each and every person and situation is different. I have many sellers who come back to me later stating that they saw no effect on their credit and have also had MANY purchase within 2 years of doing a short sale using GSE financing. Depends on how the lender reported it.
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