I have No hardship Can I still do A WNY Short Sale?

Good question! It seem as though every time you look around I’m writing a post about this particular subject well its true Because every time I turn around more questions on this topic arise so here we go again.

From my experience You MUST demonstrate a true hardship in order to obtain a Short Sale Approval from the bank.  You also have be delinquent when you apply for your short sale. For that would show that you are having a hard time making payments. If you are paying your mortgage on time the bank will not see any problems and with that being said where is your hardship?

If you the seller had fallen on hard times you must submit a letter of hardship that explains why you cannot pay the difference due upon sale, including why you has or will stop making the monthly payments. Here’s how to determine if your short sale will be approved.

Hardships being approved by the banks are:
1. Loss of job
2. Divorce
3. Job relocation 50 miles or more
4. Significantly reduced wages (must be documented).

UNACCEPTABLE Reasons

Quitting a job
Leaving a job to stay at home and care for children
Voluntary reduction in hours worked, reducing pay
Seasonal layoff from a job
Quitting a job to go back to school

 Remember that it never hurts to try! In some cases it may be possible, depending on.

Who your lenders are (some are easier to work with than others), (2) what you say to satisfy the hardship requirement, (3) what your financial documents show as far as ability to pay the mortgage.

Technically, being upside down or undervalued is NOT accepted as a hardship by lenders. And regardless of what you say in the hardship letter, they will review your tax returns, bank statements, pay stubs, and credit report. If they determine that you can afford the mortgage, then the short sale will be declined.

For more FAQs on Short Sales, check out my link.How Do You Compete With the Foreclosures in Your WNY Neighborhood!

Contact Mark Key for any further questions on this matter I will be happy to assist you 716-603-8649

I have No hardship Can I still do A WNY Short Sale?

How Do You Compete With the Foreclosures in Your WNY Neighborhood!

That is a tough situation. You are limited by your ability to lower the price while your "competition" on the market is foreclosures that can go as low as they want. Unfortunately, you have few options in this position especially since you have zero control over the neighborhood or neighbors.

Some people would say that you should auction your property and get whatever the market will bear for your house, but doing that would mean that you would likely need to pay whatever difference there was between the auctioned value and the mortgage amount which could be significant.

Unless you can demonstrate hardship to the bank, they are unlikely to allow you to short sale for less than you owe to be able to compete with the neighborhood foreclosures.  You might consider seeing if you might qualify for a loan modification to lower your payment so that you could rent out your house after you meet the residency requirement. Doing that might allow you to move out and wait for the market to recover a bit before selling.

If none of those things are options, you need to seek legal advice to find out if you have any other options and to explore what your rights and the banks rights are.

Unfortunately there is lots of homeowner in this situation.  If you are a homeowner who is facing this situation I am truly sorry that you are facing this, but you are definitely not alone. Many are in the same boat.

One of the options you may want to consider is lease option - ask your WNY agent about this (for a buyer who may not have the credit or cash to make a purchase, they buy the option to purchase your home.  It's not a guaranteed sale - it's a lot like renting because you don't know if they will buy.  But you should get cash for the option, and you'll get a "renter" who has a vested interest in the home.  You'll have to follow up with your Realtor and an attorney to see if this is an option for you.)  These options could maintain your good credit. There are a lot of owners who are under water right now.  We are not going to get out of this situation as quickly as we got into it.  This property could be part of your long term investment portfolio if you can see it that way.

Please before you decide to make any drastic decisions regarding this topic please be sure to get counsel from your attorney for he/she can guide you on this matter and if you are dealing with a Realtor. If I didn’t ask for anything I will ask you this? Please make sure this Realtor is experience in this area of sale for this is not for the average agent.

If you should have any question regarding this topic please feel free to contact Me and I will help you beyond belief of this subject matter for I have experience in this field of sale and I will see that you get the representation you deserves and if I can’t help I would be sure to guide to a respectable Attorney who can.

You may want to refer to WNY Home Sellers Will You Ever Consider Rent To Own?

Mark Key

RealtyUSA.com

716-603-8649

mkey@realtyusa.com

How Do You Compete With the Foreclosures in Your WNY Neighborhood!

How Will My Credit Score Be Affected After Short Sale or Foreclosure of My WNY Home?

According to the credit agencies the impact a foreclosure, short sale or bankruptcy have on credit scores can vary depending on the credit profile of a particular person. The amount of the score’s drop is based on the person’s starting score. In general, a foreclosure will reduce a credit score by 140 points, he added; a short sale will drop the score by 130 points.
While both a foreclosure and a short sale will remain on a credit report for seven years, they are often reported differently. A foreclosure is reported as a foreclosure, but short sales can appear as “settled for less than balance owed,” or similar terminology.

NOTICE: Homeowners - There are distinct advantages for someone to choose a short sale over a foreclosure. Specifically, you will have the ability to become WNY homeowner’s again faster vs. had you experienced a foreclosure…here are the recently updated lending guidelines:

Conventional Conforming (FNMA/FHLMC)

1) Foreclosure is 7 years
2) Deed-in-Lieu is 4 years < 80% LTV and 5 years > 80% LTV for primary residences. 7 years for second homes and investment properties regardless of LTV.
3) Short Sales is 2 years < 80% LTV and 5 years > 80% LTV and 7 years > 90% LTV
4) Bankruptcy is 4 years
According to TransUnion foreclosure won’t in and of itself impact credit, particularly since it arrives on the heels of hard financial times.
“Foreclosure will be regarded as a derogatory action on a credit report and will have a more serious impact than a loan modification or a short sale, but only if it is publicly reported,” ……If a property is going into foreclosure, more than likely the damage has already been done to the person’s credit report with missed mortgage payments that resulted in the foreclosure.”

Note: it’s the MISSED payments that do the most credit damage vs. the actual short sale or foreclosure.
A bankruptcy causes a credit score to tumble a maximum of 365 points and appears on the credit report for seven to 10 years, depending on the type of bankruptcy. Again, if the starting score is already low, bankruptcy will drop that score significantly fewer points than if the starting score is high. So, if you have a B/K and your credit score is already low the actual credit point drop is LESS compared to someone with a higher score.

Please fill free to leave a comment at the bottom of this page and start a discussion and I will respond as soon as I can or you can always ask a question from the Q&A box at the top of the page.

Mark Key

RealtyUSA.com

3830 Union RD Cheektowaga NY,14225

716-603-8649 or e-mail mkey@realtyusa.com

How Will My Credit Score Be Affected After Short Sale or Foreclosure of My WNY Home?

Should I buy a WNY Short Sale Property?

Buying a short sale is not like buying a property in a traditional way. A short sale may have some risk but it also can be very rewarding. When you are searching for a short sale you will want to make sure you are prepared. Here are some things you will need to consider.
First of all, you will want to make sure your WNY Realtor is qualified to work short sales and more importantly the seller’s agent knows the requirement in which to sale a short sale.
If your Realtor is a pro in this area they would know that a Seller would need to be qualified for a short sale. See The Number one most important part of the short sale is: Does the seller qualify for a short sale? Is there a legitimate hardship? What is the reason the seller can’t continue making the payments or why do they have to sell? This is the make-it or break-it part of the short sale.
Don’t waste your time if the seller does not have a true hardship. But dose your Realtor know this?
This is the reason that you have to make sure that your Realtor is qualified because little known tidbits like this can cause you the deal and whole lots of time.  If you have the time to wait, a short sale is a good way to go. One thing to be sure to ask when purchasing a short sale is, "who is handling it?" Is the Realtor an experienced short sale expert? Or is the listing agent using a Short Sale company that strictly focuses on short sales? By having someone with knowledge and expertise in short sales, it will make the process go much smoother and faster.
Don’t lose out on your home because your Realtor don’t know what to do because the benefits can be very rewarding and One of the benefits of buying a short sale is that the bank is typically willing to accept less money for the property because of the time and risk involved. So you generally are getting the home at below market value.
So now that you know a little about short sales go out and find one.
If you should have any questions regarding this topic or any other real estate topic from this blog please feel free to send Mark Key a question from the Q&A BOX at the top of the page I promise to get back to you as soon as possible.

Should I buy a WNY Short Sale Property?