How has going through a short sale / foreclosure affected your credit?

[Design&Build]

Excellent posts guys. I'm the OP and I really appreciate all the opinions and feedback. We are still undecided, as you can see, us doing the right thing is what we would like to do, which is to rent it out at a loss until we can sell it.

[NYMD67]

How long can the average person continue to rent at a loss though.. we have been doing it for a year now and it is draining us. We cannot believe that the mortgage companies won't agree to a mortgage adjustment or anything due to the "financial hardship" but yet they are doing anything and everything to try to help the ones who haven't stayed current, become current again?
It is so bizarre that "we" continue to support this!

Although we have been able to afford the 2 homes ,it just cannot continue for another year. It just cannot. We will not allow all of our savings to be drained because we had to move due to a job loss.

[Design&Build]

Originally Posted by NYMD67

How long can the average person continue to rent at a loss though.. we have been doing it for a year now and it is draining us. We cannot believe that the mortgage companies won't agree to a mortgage adjustment or anything due to the "financial hardship" but yet they are doing anything and everything to try to help the ones who haven't stayed current, become current again?
It is so bizarre that "we" continue to support this!

Although we have been able to afford the 2 homes ,it just cannot continue for another year. It just cannot. We will not allow all of our savings to be drained because we had to move due to a job loss.

I know. I feel the same way, it makes no sense. Slap on the wrist for those who signed up for a mortgage they wouldnt normally have qualified for, but yet those who did it the right way seem to get ignored.

[TouchOfWhimsy]

Originally Posted by NYMD67

is everyone on here who is in a short sale current on their mortgage? We are current and intend on staying that way until our house sells, even if that means that we have drained through every penny that we have saved since graduating from college 22 years ago!

We have just been told by Bank of America today that because we are current on our mortgage and have not even been late in this past year while paying for 2 homes, that a short sale would be approved in no more than 3 months..... wonder how much truth there is to that....

We did not have BoA (we had Wachovia), but when we were looking at all of our options, they would not even talk to us until we were 90 days late on the mortgage. Since we could not afford our mortgage and our rent in the new state, we had no choice but to stop paying the mortgage in order for them to consider a short sale. I hope that your bank is true to its word and will actually work with you while you are keeping hte mortgage current!

[NYMD67]

Thanks! We hope so as well.. but we are still pursuing other options such as a mortgage adjustment because our tenants cannot pay us what we would like (or need) them too, in order to cover our mortgage there....

Which leads me to something that I just learned today! on a completely different subject for one minute.... any of you who have followed any of the previous posts in the Business section in regards to unions,GM bailout,UAW,etc.. know my thoughts on the UAW and how I feel they are just a bunch of whiners...... I won't get into everything because it truly doesn't pertain to this thread BUT...
I just found out today that many of the employees of DELPHI in Western,NY were able to receive a mortgage adjustment when Delphi filed bankruptcy a few years ago... They were given a decrease in pay and because of that, it was considered a hardship and were able to get their rates reduced...
That is great, but the other added info is this; these same people who were given a reduce in pay ALL received $30K for THREE YEARS (so in total; $90K) to make up the difference for them????
yet, they were able to receive mortgage adjustments.....
WE have a mortgage that we must continue paying at the current amount while paying for another home due to a JOB LOSS ( not just a reduction in pay) and no one will hear of it??? so, if my husband's salary had been decreased, I wonder if in today's environment, would we get a mortgage reduction then????
These people could pocket the $90K and use it towards their mortgage still but yet we can't get one with no financial assitance at all from anyone....
The more I think about it all, the more it makes me sick....

[NYMD67]

I am re-opening this very old thread because we seem to have fallen upon a new challenge with our short sale that was approved , house sold 3 years ago....

Our short sale was "forgiven" and I am not going to go into all the details again, but if you re-read through this thread, you will see that we had to move due to my husband's job relocation. We had built a home the year before, a home we could very well afford, no ARM, 20% down and we are extremely responsible people.
Upon moving to our new area, we found a home to rent, and we had every meaning to rent until our home sold. Unfortuntately, the owners of the home decided they didn't want to rent it out anymore & that we should move if we could not or would not purchase the home.
We had just moved here, with the impression we were going to purchase this home upon the sale of our other home, this came as a shock that they were basically wanting to "kick us out". Our children were enrolled in their new school,etc...
SO, the owner (who owns many properties and is affluent) said "okay", he wanted to be the realtor and he seller financed the sale, meaning ,he is the "bank". We had a lawyer present for the closing and everything was very legal and responsible.
In the contract for the home, it was agreed upon that within 3-5 years we would re-finance. It is now 3 years later and we are trying our best to refinance but because of the short sale and the hit to our credit, it is difficult to get it done quickly.
We are responsible adults who have NEVER defaulted on our mortgage, even when paying for 2 of them.
Now, because we may not be able to refinance, he (the owner) is threatning foreclosure on us!
I feel like the nightmare keeps on occuring, there is no end but YET, those people that did purchase a home outside of their means, with ARM's , they walked away. NO CONSEQUENCES at all!
I happen to know several people in the state of MD who walked away and are currently the proud owners of waterfront properties now, all because the banks have yet to catch up with them!! how is that possible?
How can it be that responsible people like myself and my husband, who have paid our bills, who have never defaulted on our mortgages can be in this situation with possibly not a home to live in?
We are so upset and frustrated and as I said, we are doing our best to refinance,but it just isn't going as quickly as the seller would like and we are entwined in this mess of not knowing if we will have our home to live in. Our names are on the deed and he is the bank, but because it was seller financed (which I guess was the mistake on our behalf), he can call the shots.

If there is any professional out there that can give us their advice,if anyone has ever dealt with something like this, we would love some advice.

It is a shame that we did everything in our power to do the right thing, we begged for an modification on our mortgage while trying to sell but we were told outright by the banks & lenders that we would not receive a mod. because we had not defaulted on our payments. We did not feel that was the responsible thing to do (because it wasn't) and so we kept paying. Obviously, when you pay 2 mortgages for 22 months, other bills are going to be late. So, yes, there are some little missed payments by a month or so ( water, electric, things like that..) but they always got paid.

We cannot now uproot our family and be "punished" again for being responsible! Something has to stop...

[NYMD67]

Originally Posted by NYMD67

I am re-opening this very old thread because we seem to have fallen upon a new challenge with our short sale that was approved , house sold 3 years ago....

Our short sale was "forgiven" and I am not going to go into all the details again, but if you re-read through this thread, you will see that we had to move due to my husband's job relocation. We had built a home the year before, a home we could very well afford, no ARM, 20% down and we are extremely responsible people.
Upon moving to our new area, we found a home to rent, and we had every meaning to rent until our home sold. Unfortuntately, the owners of the home decided they didn't want to rent it out anymore & that we should move if we could not or would not purchase the home.
We had just moved here, with the impression we were going to purchase this home upon the sale of our other home, this came as a shock that they were basically wanting to "kick us out". Our children were enrolled in their new school,etc...
SO, the owner (who owns many properties and is affluent) said "okay", he wanted to be the realtor and he seller financed the sale, meaning ,he is the "bank". We had a lawyer present for the closing and everything was very legal and responsible.
In the contract for the home, it was agreed upon that within 3-5 years we would re-finance. It is now 3 years later and we are trying our best to refinance but because of the short sale and the hit to our credit, it is difficult to get it done quickly.
We are responsible adults who have NEVER defaulted on our mortgage, even when paying for 2 of them.
Now, because we may not be able to refinance, he (the owner) is threatning foreclosure on us!
I feel like the nightmare keeps on occuring, there is no end but YET, those people that did purchase a home outside of their means, with ARM's , they walked away. NO CONSEQUENCES at all!
I happen to know several people in the state of MD who walked away and are currently the proud owners of waterfront properties now, all because the banks have yet to catch up with them!! how is that possible?
How can it be that responsible people like myself and my husband, who have paid our bills, who have never defaulted on our mortgages can be in this situation with possibly not a home to live in?
We are so upset and frustrated and as I said, we are doing our best to refinance,but it just isn't going as quickly as the seller would like and we are entwined in this mess of not knowing if we will have our home to live in. Our names are on the deed and he is the bank, but because it was seller financed (which I guess was the mistake on our behalf), he can call the shots.

If there is any professional out there that can give us their advice,if anyone has ever dealt with something like this, we would love some advice.

It is a shame that we did everything in our power to do the right thing, we begged for an modification on our mortgage while trying to sell but we were told outright by the banks & lenders that we would not receive a mod. because we had not defaulted on our payments. We did not feel that was the responsible thing to do (because it wasn't) and so we kept paying. Obviously, when you pay 2 mortgages for 22 months, other bills are going to be late. So, yes, there are some little missed payments by a month or so ( water, electric, things like that..) but they always got paid.

We cannot now uproot our family and be "punished" again for being responsible! Something has to stop...

Are there any lenders or Real Estate professionals who have dealt with this?

[headingtoDenver]

definitely not a professional here, but you said that you had 3-5 years to refi. Well, if it has only been 3 years, why is he already threatening you with foreclosure? What is in your contract if you don't refi? Sounds like it is time to lawyer up and giddy up to court.