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Facing foreclosure, short sale possibility, mortgage payments, real estate associations, rental costs, hardship letter, potential fraud case, impact of short sales on credit report
After some big losses and large loans, my family is unable to keep up the mortgage payments. To avoid foreclosure, we found an agent to negotiate with the band to see if short sales is possible. It has been several months. and we just got a call from the bank and found out that our agent did a horrible report for us! The bank now considers our case is possibly a fraud and rejects our short sale request. and our agent never picked up our calls again!!
From what I understand, a short sale has the same impact on your credit score as a forelcosure. I don't see there are many advantages for a homeowner to do a short sale.
Short sales always take a long time and don't close about 95% of the time. I think the real estate associations should stop doing them because they are a waste of everyone's time. You can try doing it again but it probably won't close in time.
Your last option is to get a second job or a new job that pays more so you can afford your mortgage payments. The simple fact that your loan is more than the house value isn't forcing you into foreclosure, it's the fact that you are not paying enough to make house payments. Make your hosue payments in full and you home won't be foreclosed.
An option to another job is to rent out a room or two. Rent out the master bedroom, the one with the bath and walk-in closet. It will bring in more money either weekly or monthly. It's probably too late for that now, but you had to have known you were in trouble before you asked for help. That's the problem. Help could have come when there was time. Much of it is about preparing a budget for yourself where you pay about half what you currently pay for the extras. Things like eating out, tips, unnecessary trips in the car, too much entertainment, cut back on meat or other high dollar foods. You could have converted your garage into an apartment early on and rented that out as an efficiency along with renting out your master bedroom. One or both could have paid your mortgage every month.
Stand up and fight - there are government programs. Call the bank President. I mean go to the top of the ladder. Report the realtor to the state authorities. This person is affecting your ENTIRE LIFE - since I am a realtor I cannot tell you how many ethics classes we are required to take - it just doesn't seem to sink in with some people. I have worked short sales and I had to go national when local (bank etc.) didn't work. I have spoken to every national agency known to man. It took me 7 hours to find the correct person at a certain mortgage co. - the local manager kept telling me corporate wouldn't respond. I did get through and found that the mortgage co had the file on the wrong desk for 2 months. It worked out for all involved but it took hard work and determination. You have to do that for yourself. The phrase "I need your help" works wonders - that and the realization that the person you speak with knows you're a dog with a bone and your're not giving up. Keep very accurate records of who you speak with,date and time and always ask for employee ID and ask if they are noting every contact on your file. It's not over til it's over. If you've just had enough check out a deed in lieu of foreclosure perhaps. I'll be thinking of you.
What did the agent write in your "report" that they now think you are a potential fraud case? I assume the report you are talking about is the hardship letter?
I agree stand up and fight don't take no for an answer. Call the bank ASAP to find out where you stand, keep calling until something happens. Find another agent who specialize in short sales and foreclosures not just someone who has done 1 or 2 short sales, if necessary interview several but time is of the essence, move quick. Not sure of your state, each state has different laws so it is vital to find someone who can help you immediately. Be leary of the mail you will get from various people offering to save your home, some may be legitimate others may not.
From what I understand, a short sale has the same impact on your credit score as a forelcosure. I don't see there are many advantages for a homeowner to do a short sale.
Short sales always take a long time and don't close about 95% of the time. I think the real estate associations should stop doing them because they are a waste of everyone's time. You can try doing it again but it probably won't close in time.
I'm curious about your "expertise" in this subject. Short sales don't affect you as negatively as a foreclosure, though they do affect your score to the tune of the missed payments you had getting into that situation.
And about your 95% figure, that's completely untrue. Banks will work with people in financial situations. I've done three short sales this year. The only three I've tried. That's 100% getting them to go through. Far off of your "statistic".
It's a lot of work, but they're done every day. It's easy to get a bank to put the foreclosure on hold for many months until you get a deal.
Unless you're an expert on something, please try to refrain from giving advice that affects people's lives.
To the OP...work on getting back in touch with your bank. I'm not sure what on Earth your Realtor could have done to have the bank saying you're trying to commit fraud, other than submitting an imaginary contract.
Get another Realtor asap that specializes in short sales. Have them contact the loss mitigation department and find out what the bank wants from you to hold off the foreclosure. Loss mitigation reps are notoriously short tempered because Realtors don't treat them very nice. If your agent treats them well, you'll be surprised how many strings they'll pull for you. If you have a VA loan, get your VA rep involved because they can help immensely.
Don't just give up. Go down swinging. You just may win.
I'm curious about your "expertise" in this subject. Short sales don't affect you as negatively as a foreclosure, though they do affect your score to the tune of the missed payments you had getting into that situation.
There are other forms of short sales that do not affect the credit at all, but this is only when the owner brings money to closing and has made all payments on time. There are other types that affect the credit score a little, but the OP sounds like he/she wants to use a deed in lieu of foreclosure, which will affect the credit a great deal.
Quote:
Originally Posted by kevcrawford
And about your 95% figure, that's completely untrue. Banks will work with people in financial situations. I've done three short sales this year. The only three I've tried. That's 100% getting them to go through. Far off of your "statistic".
Since you had three, you are either very good or you only do short sales on properties where it is likely to go through. For example, short sales with one bank involved are easier than two. Short sales where the seller already has bank approval on need letter are easier than ones that the bank has not yet approved. The bank has not approved the OP and considers it to be a potential fraud case. That's not going to be easy to close.
Quote:
Originally Posted by kevcrawford
Unless you're an expert on something, please try to refrain from giving advice that affects people's lives.
My advice is sound. I believe my advice is especially sound because the OP sounds crunched for time. If the OP has not been paying on the mortgage at all, the bank will not be interested in stalling on the foreclosure and the OP is quickly running out of time. The fact the bank considers the short sale request a possible fraud is not helping the seller, regardless of whether it was the agent or the seller that made the error. He/she will have an uphill battle to face.
Last edited by bigtrees; 10-23-2008 at 10:18 PM..
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