suntrust has agreed to a contract on the shortsale of our home for 63,000 but they want 9,000 at closing or 150.00 a month for 60 months. we dont have the money and they can see that from our financial package. i dont know what to make of it. does anybody have any advice i need to answer there proposal
It depends on you situation. Can you afford to pay the $9000? Or can you not afford it? Will there be a 1099 involved where you will have to pay taxes on the amount forgiven?
It really makes me wonder what they've been smoking! If you had 9 grand laying around, perhaps you wouldn't need to do a short sale. IMHO, this spells GREED. They want more money now, and even more money later when they collect on the mortgage insurance on the loan.
More often than not, the bank simply makes it impossible one way or another for a short sale to go through. They would rather foreclose because there is more money in it for them that way.
Jeffrey brings up some good questions, also what state are you located in?
AS THE HAMPSTER WHEEL TURNS!
Wells demanded $5,000 from us (cash) or $10,000 (prom note) to approve our short sale and we replied with an offer of $1,000, cash. They accepted within a day. We were prepared for them to counter, but nope -- nothing. They just approved and moved it along to the investor (Freddie).
If anything, I'm still kicking myself that I even offered them what we did. I suspect, knowing what I know now, that they were prepared to proceed with our short sale even if we had refused to bring a dime to closing.
Every situation is different, obviously, but if it were me I would never just blindly agree to whatever offer your bank comes to you with FIRST. They're going to choose an outrageous number knowing full well that you can't meet it. Just think of it as a starting point. I would counter with LESS than what you can afford. Hopefully by the time all is said and done, the number you arrive at is at or near one you can live with.
Looks like we are at the same stage of the process as you. We received an offer from the bank to bring $5k to closing and also sign a $10 promissary note. We countered with $0 and $0. They asked for a letter from us explaining why my husband has been unemployed for so long, which we sent. Now they have accepted and sent it to Freddie Mac. I'm curious if you heard anything back yet? Wondering how long this part takes. Also, once that's done, we still have the inspection and borrowers appraisal to get through. At what point is it "safe" to sign a lease on an apartment? I understand it's never entirely safe, but I'm just wondering when most short sales fall through. We are current on our mortgage and plan to continue until closing, so paying both our mortgage and rent wouldn't be possible for more than a month or two.
If memory serves, we had about a 10 day wait (a week and a half, more or less) between the time when Wells signed off on our counteroffer of $1k, and when we received Freddie Mac's approval. In the interim, Citi (2nd) agreed to Wells' contribution of 10% and the buyer had her appraisal done. We had the inspector and U&O ready to go as soon we heard back from Freddie Mac, then spent a few weeks haggling with the buyer over repairs, blah blah blah. We closed about three weeks after getting final approval.Originally Posted by SinkingInTheGulf
If you are in California, they are NOT allowed to ask you for money in order to close.California Civil Code 580e prohibits a lender from demanding a seller contribution as a condition of short sale approval. This was signed into law last summer.California Code of Civil Procedure Section 580e - California Attorney Resources - California Laws
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