Hello, I have been reading these forums for the past year and want to say how amazingly helpful you all have been and what a relief it is to read about the experiences that others have gone through. The advice here is invaluable.
OK - We have been in the loan modification process with Wells Fargo since June 2009. We got "approved" and paid our first modified payment on January 1st of this year. The change in payment has not been enough to help us financially so we've decided to short sale. Now here are my questions:
1.We have never been late on our payments. We're with Wells Fargo - but from what I understand WF has to approve then Fannie Mae has to approve it also. I've read that Fannie Mae will not approve a short sale for people who are not delinquent. It's important to us to do everything we can to try to get those payments in - but I'm wondering if we should purposefully make a late payment (or stop paying) in hopes of getting approved. We always seem to "do the right thing" but have learned that we are often shooting ourselves in the foot. Doing the right thing too often doesn't help. I want to do whatever will help us get approved for this short sale. We put our house up for sale yesterday and got an offer today. Our next payment is due on May 1st. Should we withhold payment?
2. The reason for our financial hardship was due to a 30% paycut in my husbands wages. His pay differs monthly depending on how many hours he is assigned. He has had this paycut for the last 18 months or so. Things are looking better (knock on wood) and he is starting to make more money. Starting this month his pay has gone up so that it doesn't meet the "mortgage payment must be 31% or more of monthly income". How much will this effect our chances of getting denied/approved for this short sale? I don't want him to work less hours because we need the money. But I don't want him to make too much in the eyes of the mortgage company. We are still struggling and it will take us at least a year or two to get back on our feet (if we can get out of this house).
3. We bought our house 2 years ago for $309,000 then went through the loan modification process and payment moratorium. Due to not paying for those few months we now owe around $320,000. Houses in our neighborhood (brand new homes when we bought) are foreclosing and selling for between $200,000 - $250,000. We listed at $269,900 and got an offer at $250,000. That's about a $70,000 difference in what is owed. In your experience - is there a magic number that the mortgage companies will not go over in terms of the deficiency in a short sale offer? We are a non-recourse state (MS) - so I am not worried about owing - I am more worried about the offer being accepted. Because if our offers are not accepted - I'm not sure what our next step is - foreclosure?
Thanks to anyone that can reply. Like I said- this site has helped us so much. If it weren't for the executive office WF contact info I found here - I don't know that our loan mod would have gotten approved. Although I don't know why it's not officially complete yet - so frustrating. Our WF contact at the presidential office said that we can't short sale yet because we are still in the loan mod process. I have no idea what will happen when we send in this offer and why they won't finalize our loan mod. Any advice on that would be great too. Thanks.