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 mrcj001
Joined: 16 Jan 2008
Posts: 9
6.87 Dollars($)
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 Posted: Tue Apr 08, 2008 11:45 am Post subject: Short Sale question............. |
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My Son is needing to do a short sale and is having a heck of a time to get the lender to give him a striaght awnser.
Do you HAVE to be 90 days late??
He has been told by a few that his lender (Bank of America) dont do short sales, they fiqure it is cheaper to foreclose!?!?!?
I told him that doesnt make since.
Also, how aggressive are lenders on getting defientcy judgments now-a-days??? |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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| Posted: Tue Apr 08, 2008 10:26 pm Post subject: |
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Hi,
Welcome back.
Do not go for foreclosure. It will have a huge negative effect on your credit report. If you go for short sale the lender may come after you for the deficiency judgment.
Even if the mortgage is foreclosed, the lender will come after you for the deficiency judgment. But short sale will affect your credit much lesser than foreclosure and you can even get approved for another mortgage in 18 months.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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| Posted: Wed Apr 09, 2008 4:12 am Post subject: |
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Welcome,
It is not that you will have to be late for 90 days for short sale but you inform the lender.
By the way whether you short sale or foreclosure in both cases the lender can file a deficiency judgment. But if the lender accepts deed in lieu then he may not come after you for the deficiency judgment.
Let me know if you have any more queries. |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 814
Location: OHIO
195.97 Dollars($)
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| Posted: Thu Apr 10, 2008 5:14 am Post subject: RE: short sale issues |
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Well Mrc, the fact remains that in most cases, a borrower is given a time period of 90 days within which he'll make arrangements to pay any arrears in mortgage.
If the borrowers fails within the 90-day period, the lender files foreclosure and then the latter gets another 90 day period within which he's expected to do a short sale or go for options as discussed in http://www.mortgagefit.com/foreclosure/17ways-avoid.html , otherwise the lender sends a notice of sale at the end of the period.
Regarding BOA not accepting a short sale, well, it may be their strategy or the way they work.
Lenders do ask for deficiency and quite obviously they can do it because they want their money back.
Regards,
Jessica.
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http://jessica.mortgagefit.com/ |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7419
Location: bloomfield, ct
64.95 Dollars($)
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| Posted: Fri Apr 11, 2008 11:40 am Post subject: |
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"he has been told by a few" - i dont know what this refers to, mrcj001, but if it means "friends" or "relatives" or "acquaintances"...beware!
what ought to be taking place here is that your son needs to engage his realtor (i assume there is one) to do the homework for him. a market analysis done properly will work to give the bank enough information to recognize its position and, perhaps, come to an agreement about a short sale.
what bank of america's policy is today will likely change as it begins to recognize (if it hasn't already) that the marketplace has changed dramatically, and that scads of people are in properties with mortgages owed greater than the value of their homes. if and when these people attempt to sell the homes, there will (cannot avoid) end up being shortages that the banks will need to address when the time comes.
to be told that boa won't do it, period, is awfully short-sighted in 2008, and i also suspect it is incorrect.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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