I lost my job in the banking industry last July and have not been able to find a job since then. We managed to keep all of our obligations current by tapping our savings, however the well is running dry and we need help.
We can no longer afford to stay in our current home based on my meager retirement income and my wife's Social Security Disability.
Our home is on the market and we are facing a short sale situation. Our credit scores are between 760 and 780 and our mortgage payments have never been late.
We paid $210,000 in 2001 and our current mortgage balance is approximately $156,000. Our home has been listed for 6 months starting at $175,000 and has been lowered over time to $134,900. Assuming a sale of $125,000 our first mortgage holder, CitiMortgage could lose approx. $40,000-$45,000. We also have a small second mortgage with BofA for $8,900.
We have three questions.
1. Will the fact that we are current delay in any way the time it takes for CitiMortgage to approve or disapprove the offer? In other words, will we get any quicker response if we are say 60-90 days behind?
2. We are facing a dilemma, we understand that a short sale will have a negative impact on our credit however, if we have a late mortgage payment our credit will be hit twice as hard. We would like to buy a much smaller and more affordable place using our current drastically reduced income, based on our excellent credit what are the chances we could qualify for a new conventional or FHA loan any time soon?
3. Assuming the mortgage companies have all the information they need, what is the approximate time frame to get approval from the first and second lien holders?