Short Sale/workout Plan W/loss Mitigations?
I have a potential homeowner who is interested in completing a short sale so he can get out of his mortgage responsibility.
Although he is willing to walk away from the property he has worked out a repayment plan with loss mitigations to catch up his 4 months of arrearage with his current mortgage payments.
Will this payment plan hurt the short sale?
Should he stop making payments if he truly wants to pursue a short sale?
The payments he is making is truly hurting him financially.
you asked, "Will this payment plan hurt the short sale?"
yes and no. And be careful about recommending to anyone that they stop making payments... he/she must bring that up.... without any input from you... lest you be perceived by a Court that you were providing financial advice that resulted in the loss of the home.... and you don't want to argue common cents issues in Court.
Anyway, by virtue of the forbearance plan, the mortgagee now thinks that the Borrower can keep the house. If they qualify for a repayment plan they might no longer meet the criteria for short sale consideration. Double edge.
If and when the forbearance plan fails...the loss mit rep will have just about all the info needed (unless it needs to be updated) to fasttrack the preforeclosure short sale.
Be aware that during this time period other lienes might attach to the property.
[addsig]
SSPro,
Thanks for the info. I was talking with the homeowner after he recieved the short sale package. We were going through the criteria for the short sale when this information came out that he had set up arrangements with the loss mitigations dept.
On the short sale package it states that the homeowner would have to be at least 2 months behind in order to qualify for a short sale.
Since the homeowner is 4 months behind he was wondering if making payments would not qualify him for a short sale. He has made one payment thus far.
Again, it is the homeowner who is asking these questions.
Given this information is it wise to attempt a short sale?
Will this kill any short sale attempt?
Do you know the type of loan, who services the loan account, and who owns the loan?
I would assume the best way to find out would be to call the loss mit and ask. See what they tell you.
Quote:
On 2004-11-22 16:33, TheShortSalePro wrote:
Do you know the type of loan, who services the loan account, and who owns the loan?