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My husband and I are considering trying to short sell our home. we are approx 100k over loaned on the house, and are considering relocating since I may lose my teaching job this or next September. We have excellent credit ( high 700's) and have never missed a payment. We filled out some paper work with an attorney, that came highly recommended, but he's really not guided us like we hoped.
We wanted to know how much if any the bank would ask for in repayment? just a ballpark figure, will it be close to the full amount? Half? 10%?
And what are the typical terms they establish is it 30 yrs like a mortgage? 10? 5? and at what rate? he basically said he has NO idea, and won't even meet with us in person until we have an offer. I don't want to go through all the trouble of putting the house up for sale, if the repayment is something we can't afford anyway.
My husband and I are considering trying to short sell our home. we are approx 100k over loaned on the house, and are considering relocating since I may lose my teaching job this or next September. We have excellent credit ( high 700's) and have never missed a payment. We filled out some paper work with an attorney, that came highly recommended, but he's really not guided us like we hoped.
We wanted to know how much if any the bank would ask for in repayment? just a ballpark figure, will it be close to the full amount? Half? 10%?
And what are the typical terms they establish is it 30 yrs like a mortgage? 10? 5? and at what rate? he basically said he has NO idea, and won't even meet with us in person until we have an offer. I don't want to go through all the trouble of putting the house up for sale, if the repayment is something we can't afford anyway.
Your attorney is being honest with you. There is no standard. You have to go through the process to see what the bank is willing to do. It is just the way it works.
If you have BOA they have a cooperative short sale. It's Basically their HAFA program changed to no longer have a income ratio limit/requirement. Not sure on any other lenders but you can ask.
We just got approval on the offer we submitted and hope to close by August.
a repayment plan is a "short payoff," a lot easier to get approved - the terms are usually a 5 to 7 year 0 interest rate for all or a part of the balance of the debt that is not paid off.
a repayment plan is a "short payoff," a lot easier to get approved - the terms are usually a 5 to 7 year 0 interest rate for all or a part of the balance of the debt that is not paid off.
Thanks. This is the *type* of information I was looking for. Do you know by chance, how they determine the loan period? and/or the repayment? is it based more on what you can afford to pay, or on what the loss is? Sorry, but this seems to be a real "mystery", and quite a bit frustrating.
10 years, 0 interest. After paying on the debt for six months, you can settle with the collector for 30-50% since the debt is unsecured. Typically second mortgages are the ones they try and make you pay most of, do you have a second mortgage/heloc?
You're ability to negotiate will depend on your financial hardship as demonstrated by your bank account.
Thank you for these replies they are very helpful! To further explain our loan breakdown, we have a 1st mortgage with BofA which we are fairly sure will be paid off in full with the proceeds from the short sale.
Our 2nd will likely not be covered at all (it is with GMAC) and it has a remaining balance of approx. 80k. So this is the loan we'd need negotiated.
We have excellent credit but very few assets, money in the bank, or other debts. We're also likely looking to move which would mean a loss of my income and an inability to repay that 2nd if it's negotiated to a very unreasonable payment amount (if they did 10 years at 0% interest that might be workable if they are willing to take 30-50% of the loan balance off).
Thanks for the details. My best advice would be to stay strong and don't get caught up in the media hype that you should just put your head down and deal with it. You have options, and you owe it to yourself to do the best thing for your family. Don't let a giant bank intimidate you, a credit hit is really not so bad in exchange for freedom for your family to move forward.
You already got screwed by the market falling on house prices!
Unless you took money out of the house for a refinance?
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