6 months ago our market analysis was about 165,000 now it's 140,000, we owe 160,000. We will be getting orders (navy) to move in August. We are current on our mortgage and make enough to pay it until we are forced to move. Our loan is NOT a freddie or fannie loan. Our mortgage is through Navy Federal and I think it is owned by them.
My question is, can we start the short sale process while current in our mortgage because we will not be able to support 2 households once we have to move? We really need to keep the damage to my husbands credit at a minimal because he is in the nuclear field and needs to keep his security clearance. This one mistake could ruin our lives.
It looks like I can call my bank and ask for their hafa policy. Is that true? Is there one policy for this type of loan.
Tags:
Hi Tracy,
Have you checked to see if you are eligble for the HAP program? http://hap.usace.army.mil/
That is specifically geared to military families.
Most lenders will still consider a short sale if the hardship is imminent. It may be easier once you have the orders in hand, but I would not let that deter me given your situation - show them that you will not be able to make payments in the near future. I do think HAP is your best option but not sure if you would qualify -- you should fully explore that first before a short sale though.
Good luck!
Tni
I'm sorry to hear you don't qualify for HAP. And because your husband has a security clearance this is indeed a big issue. Even though short sales are relatively common, I have heard of their being issues with security clearances. You really need to seek out advice from the military, an attorney and a tax advisor.
There are at least two types of short sales, traditional and HAFA. You can apply for either one while current on your mortgage if you have a foreseeable default. Navy Federal Credit Union is on the list participants on the Making Home Affordable website. Here is a link to that. You can contact Navy Federal directly for their HAFA policy.
Good luck!
We are looking into renting the house out but I am scared to do so. It is an older house and while we have already put a lot of work into it things always pop up. Add to that the cost if the house is vacant.
I think you are right about seeking the advice of an attorney and the military. I think we get free legal council through the military.
Tracy,
If after all the proper advice you do decide to rent it out, I would recommend using a well-respected local property manager to help you with the property. Over the long haul I think property management is the way to go when you have a home in another city that may need repairs here and there - they can coordinate repairs and deal with the tenants. They can also deal with the vacancies for you. The money you save by not using them can easily be eaten up with having the home vacant for one month. Not to mention if you have to make a trip back to deal with any issues. I use property management myself for a home I own two hours away. The home is newer. But last month the sprinklers heads stopped working and the month before it was a doorbell. I love that someone else is taking care of it. So, don't be penny wise and pound foolish if you decide to rent it out. Pick the best possible company and ask for references from landlords they help now with similar properties.
Tni
Tracy,
You should look into the The Servicemember's Civil Relief Act (SCRA). It is specfically geared towards servicemembers. Here is one website that can assist you --->http://www.military.com/benefits/legal-matters/scra/overview
Tracy,
Believe it or not, as active duty personnel, you have opportunities civilians do not have. Being a part of the Navy FCU or any other banking institution catering exclusively to military dependents, vets and retirees offers alternative options the general public may not have. I believe MWR has a financial support section. I would suggest you talk to your MWR representative regarding your alternatives. They may coordinate an appointment with the Navy FCU to explore solutions or give you direction to other options. I would suggest you go this route before looking outside at alternatives. Both may discuss the alternative government programs, such as HAFA or an option unique to the military. Good to do this now and understand your situation as opposed to waiting to the day you PCS. Good Luck!
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.