Quote:
Originally Posted by Cali5  Faith and Cat,
I am also planning on walking away in California since I am upside down $150K. I am so confused how to begin. I am 3 months late awaiting loan mod but I think I am going to walk away. Do I ask for short sale first? Our neighbor across the street was on short sale but now foreclosed, nobody bought the house. How long do they give you time to short sale before they foreclose. I am getting nervous. I have 3 small kids, I need to know when to start finding a place to rent. Will anyone let me rent their house since I have 90 days late on my credit report.  |
Cali5,
Hi, good evening, hope all is well with you.
It depends on who your lender is and how your lender handles foreclosure, deed in lieu and Short Sale. I was 8 months behind when Countrywide Home Loans approved the Short Sale. I have asked Countrywide Home Loans first for refinance, loan modification and to sell back the house to me at a Short Sale price of $290k, but
CW denied all my request. I have moved out of the house while my credit was still good. We just checked our house 1 or 2 x a week.
I have hired a regular agent who did not have experience in Short Sale, though there were 6 buyers that made an offer all backout due to long process. The 2nd agent has experienced in doing Short Sale and in 1 week brought 4 buyers, I rejected the 4th offer being a very low offer, the first buyer backed out due to long process but the 2nd buyer made an offer more than the selling price in the amt of $298k to cover his closing costs.
Write a financial hardship letter to your lender, send copies of pay stubs, write down all your expenses and if the surplus is less than $100, they mightl approved your Short Sale, you need to send them your last 2 months bank statement also. If you are planning to do Short Sale, you better do it as soon as possible and proper pricing of your house will attract a buyer. If your neighbor or everyone in your area is selling their homes in your area for $200k, lower it down to $180k to attract a buyer. Without a buyer, there is no Short Sale, because lenders only approve Short Sale if there is a buyer.
As far as renting a house, make sure that you ask if the owner is not in foreclosure because I hate to hear you move to this new house and find out later that the house is in foreclosure process.
If you are planning to rent an apartment, now is the time to look while there's less damage in your credit. Just tell the landlord that your house is pending sale. Landlords need tenants too, some requires credit check, some don't, some requires a deposit of $400-$500 plus 1 month and 1/2 rent, so make sure you check. You can check rent.com or apartment.com for apartments near your area. Be careful giving money up front without seeing the place and without signing a contract. There's a lot of people out there who enjoys robbing you of your money they did not earn.
Hope this helps and God bless you.
Faith
