Home Loans and Support

Short Sale Guidance......

Discussion in 'Short Sale Outpost' started by SJP1995, May 14, 2015.

  1. SJP1995

    SJP1995 LoanSafe Member

    We bought in the height of the market. Cut to 9 years later after a so called in-house Chase mod a few years back (which really just added what we missed on to the back of the loan, but 6.5% int rate stayed the same) and a discovery that the 2nd was lost and never recorded therefore not on title, we are highly considering short sale. Over the last year we have applied for every program, loan mod, refinance possible. Chase has said no to everything. Last summer my hours got cut by nearly 25%, our car needed to be replaced and now Chase screwed up our escrow and our payment is increasing, then we just were notified that due to the leak that we had last year (due to the builder) our homeowners ins doubled, so that will increase it again and we still have that lovely 6.5% interest rate. We were hopeful that we had a bit of equity and do a standard sale and get out of this lovely but overpriced money pit. However, it has been determined we are a bit underwater ($15-25,000). We haven't missed a payment in years (only during the original loan mod), but honestly I don't know how we can continue this. I am just confused if people short sale for such a small amount of money. Thoughts, tips, expert advice??? Will we be responsible for the difference or the tax on the difference???
  2. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-619-379-8999 Staff Member

    Hi SJP1995,
    You've come to the right place to get answers to your questions! I personally can't comment on whether or not you will be responsible for the difference or tax as I would hate to give you the wrong advice. From what I know if the loan you have is purchase money, depending on the state it may be considered "Non-recourse" meaning they can't come back after you.

    Yes people do short sale with that little of a difference and I'm assuming you have factored in costs of selling the home & realtor commissions? I've recently heard of many short sales going through while being current. If you're able to do this you can obtain new financing through FHA immediately. That is, if you want to start a new homeownership endeavor.

    Of course if you can avoid a short sale it will be better for your credit in the long run and it will also help the programs that you may be eligible for like conventional, FHA, VA or USDA.

    The other option is applying for another modification....
  3. SJP1995

    SJP1995 LoanSafe Member

    I was told that the FHA right after a short sale while being current isn't available. It is available??
  4. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-619-379-8999 Staff Member

    Sure is!

    "If the borrower was current within the month due for the immediate preceding 12 months and all installment debt was paid as agreed prior to the event, the borrower would be considered eligible for financing"

    "If the borrower was late on payments at anytime in the preceding 12 months, the waiting period is 36 months"

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