Hello All~

I have a client who finds himself in a situation where he and his fiance each own a home, both homes are underwater and they cannot (don't want to) sustain both houses. Since there is a child involved who has known his fiance's property as home, my client needs to sell his.

I do not believe my client would qualify for the Standard Preforeclosure Sales Option since it could be determined that he has excess income and, in any event, he has no desire to walk away from his obligations. He is more than willing to enter into a Repayment Plan for the full amount of the deficiency.

Mortgagee Letter 2008-43 indicates on Page 7, Section D that borrowers with excess income must enter into a repayment plan but it is unclear (to me) whether that is referring to a repayment plan for the deficiency after a short sale or a repayment plan of defaulted amounts with no short sale allowed.

Does anyone understand what the section mentioned above is referring to?

Has anyone ever dealt with a situation like this?

I would appreciate any input or guidance anyone can provide.

Thanks!

P.S. The Servicer is GMAC