FHA after Short Sale

[shepsigkap]

I have a few questions regarding what is considered an approved hardship for a short sale - here is our scenario:

* We are in California and have a Countrywide/BofA loan
* We are Fannie/Freddie
* We are current on our payments
* House is only in my husbands name - I am not on the loan or the deed
* We are 130-170k underwater
* I am a state employee and recently had to accept a job in Sacramento that is going to require us to move from Fresno in order to avoid being laid off (my start date is March 1st)
* My husband will be able to transfer to Sacramento but there will be a pay cut for him - the size of the pay cut is unknown at this time b/c it won't happen right away (we are thinking he will move around Aug-Oct)
* Because of the move we cannot keep the house

We would prefer to go the Short Sale route but if it comes down to it we will just walk away and foreclose. Of course our preference is to do as little damage to our credit as possible so we are hoping to be able to stay current in the process of getting (or attempting to get) a Short Sale approved.

Does our situation sound like it will qualify as a hardship? Or will the fact that I am not on the loan/deed make my job transfer irrelevant?

We are just beginning to explore our options and gather information so any and all feedback is greatly appreciated!!!

THANK YOU!
- Sarah

[Evan Bedard]

We would prefer to go the Short Sale route but if it comes down to it we will just walk away and foreclose. Of course our preference is to do as little damage to our credit as possible so we are hoping to be able to stay current in the process of getting (or attempting to get) a Short Sale approved.

Does our situation sound like it will qualify as a hardship? Or will the fact that I am not on the loan/deed make my job transfer irrelevant?

Hey Sarah,

Many people use job relocation as their hardship when pursuing a short sale. Even though you are not on the mortgage you and your husband are still married and you need to explain to them it will be impossible to make the payment without your source of income.. Do you have a 1st and 2nd mortgage on the property, if so are both purchase money loans?

[shepsigkap]

Hey Sarah,

Many people use job relocation as their hardship when pursuing a short sale. Even though you are not on the mortgage you and your husband are still married and you need to explain to them it will be impossible to make the payment without your source of income.. Do you have a 1st and 2nd mortgage on the property, if so are both purchase money loans?

We only have a 1st so it is just BofA that we will be dealing with.

[shepsigkap]

One other thing that may or may not matter is that the current mortgage payment is 31% (or slightly less) of my husbands gross income. It is an even smaller % of our combined gross income. Will that matter?

[Evan Bedard]

One other thing that may or may not matter is that the current mortgage payment is 31% (or slightly less) of my husbands gross income. It is an even smaller % of our combined gross income. Will that matter?

That will not have an affect on their decision for the short sale.. It is great news you have only one mortgage because it is generally much easier way more smooth of a process without having to deal with multiple mortgage servicers.. This should also make it easier to achieve a short sale without first falling behind on your payments..

[shepsigkap]

Will the fact that we already have had our loan modified through HAMP have any bearing on the approval of a short sale?

Also I know there are some great example hardship letters on this form but if anyone has a good one that uses the Job Transfer as the hardship I would love to see them!

Thank you in advance for all your help!!!

[shepsigkap]

Hello,

I have a question about a FHA loan after a Short Sale ... here is the details on our situation:

- Home was purchased by my husband before we got married and my name is not on the loan or the deed

- We are current on our loan and have not missed any payments and will remain current until the short sale closes

- We are in the process of completing a cooperative short sale with BofA - we are submitting out complete package tomorrow and have 3 total offers above the BPO so we will be submitting the main offer and the two back up offers

- Our hardship for the Short Sale is a forced job relocation for me (from Fresno to Sacramento), my relocation was effective March 1, 2012 and my husband is in the process of transferring to Sacramento as well (staying with his current company)

- We life in California which is a community property state

- We are looking to purchase a house in Sacramento and have begun exploring FHA options in my name

- We have had 2 lenders tell us that it might be possible to use my husbands as the co-borrower since the short sale will be completed without any missed payments - the lenders have referenced exceptions that apply specifically to FHA loans

At this point both lenders want us to complete a pre-approval package in order to find out if the FHA loan would be approved with my husbands income but I'm not sure if the lenders are telling us that it should get approved just to get us to complete the pre-approval process or if it is something that actually could happen. So here is my question:

Does anyone know if it is likely or possible to get approved for a new FHA loan with me as the primary and my husband as the co-brorrower right after a short sale where there was never a missed payment?


We are fortunate in the fact that we do have someone who is willing to be the co-borrower with me on an FHA loan if we are unable to secure a loan using my husband as the co-borrower so we do have other options but our preference is to be able purchase a home without having to use a family member as a co-borrower. Which leads me to a second question:

Will going through the pre-approval process in the attempt to get approval for my husband to be the co-borrower have a negative impact on my credit if we do not get approval to use him and have to then go with the family member co-borrower option?


THANK YOU IN ADVANCE FOR YOUR FEEDBACK AND HELP!!!

Everyone on this sight has been super helpful for us during both the HAMP loan modification process and the short sale process so there is no doubt that it will be helpful in this new home loan situation