Should I still make payment if I'm planning on short selling? - Loan Modification Forum

Salbs4 · 08-10-2009, 03:21 PM

Hello,

New to this board, and I'm hoping someone can give me some advice/imput. Because of this economy we will be relocating to another state in March 2009. We've been in home since 2003 and only have one loan with Wachovia. Mortgage payment was due on 7/15, it'll be 30-days late 8/16. My thought is not to pay July,Aug,Sept,Oct payments. Thinking we'll receive NOD by 11/1/09. At that time, notify Wachovia that home is being listed aggressively with a short sale agent. Will foreclosure proceedings still proceed? If we receive offer/offers, will they put foreclosure on hold to review offers? Praying we would get an offer in Dec or Jan, (still not making payments) and wait for Wachovia to approve the short sale of our home. Hopefully short sale is approved by March or April and we can relocate with some savings. We would like to avoid a foreclosure on our credit, short sale is avoidable. But confused as to when your home is consided a foreclosure? When you get the NOD, when the sheriff visits you? When you receive a letter with an auction date? Will the letter say "foreclosure proceedings are now in place"? or "your home is now a foreclosure"? Is it unrealistic of me to try and time everything? Just dont want home to foreclose before our family has to move.

The original loan amount was for approximately $350,000. We did take out a heloc for $150,000; however, we later refied that into one loan. Is it my understanding that the refied $200,000 will not fall under the "Mortgage Forgiveness Act 2007"? Once we sell the home, the deficiancy to the bank will be around $80,000

I'm in California. Wachovia pick-a-payment.

Any imput/advice/similar stories are welcomed.

Thank you so much!

cinman · 08-19-2009, 07:08 PM

Couple of things - what was the cash out used for? Have you looked into filing insolvency instead of the mortgage forgiveness act qualifications?

Notice Of Default is the start of the foreclosure proceedings (the steps). The timing of the steps varies from lender to lender and state to state. Yes, the foreclosure moves forward until they approved the short sale...offers won't stop it - they need to approve it. Then once approved they normally give you 30 days to close. Make sure that all fits into your schedule.

The Agent Center

I'm assuming you meant your relocating March of 2010 in your post...not 2009.

Salbs4 · 08-21-2009, 11:51 AM

Cash out was used for several things, wedding, honeymoon, etc. about 1/2 was used for upgrades to our primary residence.

Insolvency may be the way to go, if we dont qualify for the mortgage forgiveness act.

08-10-2009, 03:21 PM	#1 (permalink)
Salbs4 Junior Member Join Date: Aug 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Should I still make payment if I'm planning on short selling? Hello, New to this board, and I'm hoping someone can give me some advice/imput. Because of this economy we will be relocating to another state in March 2009. We've been in home since 2003 and only have one loan with Wachovia. Mortgage payment was due on 7/15, it'll be 30-days late 8/16. My thought is not to pay July,Aug,Sept,Oct payments. Thinking we'll receive NOD by 11/1/09. At that time, notify Wachovia that home is being listed aggressively with a short sale agent. Will foreclosure proceedings still proceed? If we receive offer/offers, will they put foreclosure on hold to review offers? Praying we would get an offer in Dec or Jan, (still not making payments) and wait for Wachovia to approve the short sale of our home. Hopefully short sale is approved by March or April and we can relocate with some savings. We would like to avoid a foreclosure on our credit, short sale is avoidable. But confused as to when your home is consided a foreclosure? When you get the NOD, when the sheriff visits you? When you receive a letter with an auction date? Will the letter say "foreclosure proceedings are now in place"? or "your home is now a foreclosure"? Is it unrealistic of me to try and time everything? Just dont want home to foreclose before our family has to move. The original loan amount was for approximately $350,000. We did take out a heloc for $150,000; however, we later refied that into one loan. Is it my understanding that the refied $200,000 will not fall under the "Mortgage Forgiveness Act 2007"? Once we sell the home, the deficiancy to the bank will be around $80,000 I'm in California. Wachovia pick-a-payment. Any imput/advice/similar stories are welcomed. Thank you so much!

08-19-2009, 07:08 PM	#2 (permalink)
cinman Junior Member Join Date: Aug 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Should I still make payment if I'm planning on short selling? Couple of things - what was the cash out used for? Have you looked into filing insolvency instead of the mortgage forgiveness act qualifications? Notice Of Default is the start of the foreclosure proceedings (the steps). The timing of the steps varies from lender to lender and state to state. Yes, the foreclosure moves forward until they approved the short sale...offers won't stop it - they need to approve it. Then once approved they normally give you 30 days to close. Make sure that all fits into your schedule. The Agent Center I'm assuming you meant your relocating March of 2010 in your post...not 2009.

08-21-2009, 11:51 AM	#3 (permalink)
Salbs4 Junior Member Join Date: Aug 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Should I still make payment if I'm planning on short selling? Cash out was used for several things, wedding, honeymoon, etc. about 1/2 was used for upgrades to our primary residence. Insolvency may be the way to go, if we dont qualify for the mortgage forgiveness act.

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