Short Sale Never Delinquent

I live in Florida and have a mortgage with countrywide which is now worth more than the value of the house. We have been trying to sell our home since aug of 2006….. at first we tried ourselves…then with a realtor after a year…and now the new one we have told us our home is worth less than we owe…. which put in into this problem.

With this subprime loan the pricipal increases every month by 1K dollars. It is currently at $256K and they will increase my minimum payment up to an unpayable $2500 per month (its $779 now) once it hits $260K.

I have contacted them repeatedly requesting a short sale. They first agreeed and then balked and claimed the ‘investor’ – someone they at first would not name then let slip it was ‘bank of new york’ doesn’t agree to do short sales unless the home owner is behind in payment by at least 30 days and usually not until they are 90 days behind…..which would leave me open to a foreclosure….

I have NEVER been behind in payments and I often pay the mortgage rather than the food bill lately…. I have dealt with them in good faith and am attempting to resolve this BEFORE I become delinquent in payment and my credit goes south…

Fred

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Hello Fred,

You generally have two options: (1) if you want to fast track a short sale, then you can agree to sign for the deficiency as an unsecured note, or (2) the fact is that delinquent payments soften up the lender to offer more aggressive workout options. 

You may also exercise your rights under the TILA to obtain the true identity of the holder of the loan.  If it has been pooled as mortgage backed security and you are supplied with the securitization trust, then you may look up the pooling and servicing agreement online at SEC.gov to determine the requirements for loan workouts in the pool.  Freddie Mac for example requires that the borrower either be in default or “in imminent danger of default”.

Do you have a buyer for the home?  A purchase contract from the buyer is an integral part of the short sale submission.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.