Posted: Sat Oct 01, 2005 3:11 am Post subject: RE:
Hi Jim
Welcome to the forums.
HUD allows a lender to reject a short sale or a pre-foreclosure sale offer under certain conditions. If the property is not owner-occupied and if there is a second mortgage loan taken against it, then HUD does not allow a lender to conduct a short sale.
Generally, lenders agree to a short sale when they find out that the borrower is unable to make the entire mortgage payment. The short sale will allow him to receive at least a portion of the unpaid loan balance, if not the total outstanding payment.
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Regards,
Samantha.
Nics Guest
Posted: Sun Oct 02, 2005 11:19 pm Post subject: RE
Posted: Mon Oct 03, 2005 1:26 am Post subject: short sale
Hi Nics
At times lenders are willing to accept a lesser amount than what they should receive from borrowers. This is mainly done to avoid the costs of conducting a foreclosure. This is where a short sale comes in. It helps the lenders get back a larger portion of what they had offered as loan, at least an amount equal to the value of the home. At the same time, it gives the borrowers the opportunity to get rid off the amount of unpaid balance which is greater than the property value.
A short sale saves costs like the attorney fee and those associated with the eviction process, damage to the property and costs related to the resale of the property. A short sale is a better option compared to a foreclosure or a bankruptcy. These will affect your credit score more than a short sale.
But in case of second mortgage on the property it becomes difficult to conduct a short sale. This is because the second lender does not wish to lose his interest in the property and therefore he would not remove the lien from the property.
Regards,
Caron.
Mathews Guest
Posted: Fri Jan 23, 2009 11:41 pm Post subject: short sales
Hi,we have a house that was 300,000 when we bought it,now it is 160,000,
but we owe 260,000.We talked to our mortgage/bank chase,they said no,
we could let you pay half of your mortgage payment for 3 months,wright after
those 3 months,you will have to pay the accumulated amount balance,we said
no thanks.Now we will have to stop paying the mortgage.Why the bank does not negotiate we us better than make us go to short sale or foreclosure?
The bank had offered you the option of forbearance. As far as short sale is concerned, lenders do not accept it until you are not late in payments for at least a month. But deliberately stopping the payments will not help you in negotiating with the lender. You will have to give the lender genuine reasons for stopping the mortgage payments or else he may not accept a short sale.
Thanks,
Jerry
tonya Guest
Posted: Fri Feb 20, 2009 4:45 pm Post subject: short sale and will still owe mort co
has anyone ever heard of a mortgage company issuing a ten year unsecured note for some of the remaining balance from a short sale???
After a short sale, a lender can demand the deficient amount from you. If you cannot pay it, then the lender may either garnish your wages or place lien on your property. But I haven't heard of mortgage company issuing a ten year unsecured note.
Guest
Posted: Sun Aug 30, 2009 11:09 pm Post subject: deficiency judgement
I own a house in Iowa in which my parents co-signed for me. Unfortunately I have not been able to make payment. I have some equity in the house since I own it for almost 5 yrs now and never touched the equity. I have just received my last notice of late payment and that they will begin the forclosure procedure if i cannot come up with the balance owe.
What I am curious to know is does Iowa allowed for deficiency judgement? If yes can they seek that from my parents whom reside in CA? I am pretty sure that the house will sell for what I owe on the house but I am just making sure. Thank you.
Samantha
