jon & Corrie A asked:
We have not missed or had any late payments on our mortgage (through M & I bank), although we are now paying our mortgage with student loans (bad idea, I know) because my husband lost his job, and we’re both now in school. We had three offers and accepted one a week ago. We are approximately 15K short due to paying too much 3.5 years ago, the dip in the market, several bad choices to refinance, and some problems we found in our house AFTER we bought it (water in the basement that sellers didn’t disclose–we have spent thousands to fix this issue). Our realtor deals with short sales regularly and seems very confident, but I won’t be sure about anything until the deal is done! Just looking to hear what others experiences are or from anyone who has knowledge on short sales!
Sue
We have not missed or had any late payments on our mortgage (through M & I bank), although we are now paying our mortgage with student loans (bad idea, I know) because my husband lost his job, and we’re both now in school. We had three offers and accepted one a week ago. We are approximately 15K short due to paying too much 3.5 years ago, the dip in the market, several bad choices to refinance, and some problems we found in our house AFTER we bought it (water in the basement that sellers didn’t disclose–we have spent thousands to fix this issue). Our realtor deals with short sales regularly and seems very confident, but I won’t be sure about anything until the deal is done! Just looking to hear what others experiences are or from anyone who has knowledge on short sales!
Sue
Erica
If your realtor is confident that it will go through and they do this all the time, then you probably don’t have anything to worry about. However, here in Colorado, I’ve found that the banks usually won’t take a short sale when the sellers are caught up in payments. Then again, our foreclosure rate here in Weld County is 700% higher than the national average.
Claudia
okay here is a direct oppostie opinion and one that uses common sense. why in the world should the bank you owe money to agree to take less then you owe? if you were making a lot of money on the house would you agree to give them more then you owe?
banks will make a deal on a short sale when you are behind on your mortgage and they know the cost and time of foreclosure will just make it worse. but when you are making your payments on time why would they want to deal with you? the fact that you made some poor decisions and have had some bad luck doesnt make them want to be nice to you … sorry for the bad news.
in any event, i wish you the best of luck.
Anne
Jeff is correct. I deal with short sales and what the lender will try to do with you is to work out some type of program or loan restructure first. Then when you flake out and a foreclosure proceedings start, then the lenders start looking into other options, such as selling the note or doing a short sale.
Regards