Posted: Fri Dec 12, 2008 11:41 am Post subject: mortgage help
I want to move now to Davis for my children education....I cant sell my house beause of the economy....cant put it for short sale as bank wont let me do that....cant rent as my mortgage payment is too high....what do I do?
Why is the bank not allowing you go for a short sale? Are you current on your payments? Generally if the borrowers are current on their payments, the lenders do not allow a short sale, a deed in lieu foreclosure or a loan modification. All these options are available only when you have defaulted on your payments.
In my opinion, you should inform the lender that you will be moving to Davis for your children's education. There are chances he may allow for a short sale. Also check out if the lender allows a deed in lieu foreclosure. However, you should note that in a short sale your credit will be lowered by 75-100 points whereas in deed in lieu it will be lowered by 250 points. So it's always better to go for a short sale.
Thanks
erin a Guest
Posted: Fri Dec 12, 2008 9:46 pm Post subject: thanks for the reply
yes you,re right I,m on current on my payments.Now that I know why they,re not doing the short sale!ok this month starting I,ve told them they wont receive a payment.Thanks.
You will have to apply for a short sale or a deed in lieu with the lender. You need to give the lender a hardship letter stating why you are unable to pay the dues. The lender has all the right to deny you a short sale or a deed in lieu foreclosure.
But if the lender accepts any one of these, you should note that it will affect your credit score (as James has stated) which may affect you when you buy another property. But still if you want to go for it, I would suggest you to go for a deed in lieu foreclosure rather than a short sale.
irumasghar1300
