Comments on: Stop Making Mortgage Payments During a Short Sale? http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/ Real Estate News and Views for Metrowest Massachusetts. Published by Bill Gassett RE/MAX Executive Realty Tue, 15 May 2012 18:57:55 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Bill Gassett http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-5406 Bill Gassett Tue, 15 May 2012 18:57:55 +0000 http://massrealestatenews.com/?p=94#comment-5406 Hi Jeri - it really would not be appropriate for me to tell you whether or not it makes sense for you to stop paying your mortgage or not. A lot depends on the individuals circumstances along with who the lender is that holds the note. My advice would be to work with a qualified attorney who would best be able to guide you through your short sale. Hi Jeri – it really would not be appropriate for me to tell you whether or not it makes sense for you to stop paying your mortgage or not. A lot depends on the individuals circumstances along with who the lender is that holds the note. My advice would be to work with a qualified attorney who would best be able to guide you through your short sale.

]]> By: Jeri http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-5405 Jeri Tue, 15 May 2012 12:40:56 +0000 http://massrealestatenews.com/?p=94#comment-5405 Bill, I just found this article and it has addressed many of my concerns with a short sale. My house is currently up for short sale. This month is the first month we have not paid our mortgage. My question is this, we have a first mortgage through one bank and a second (it is a Line of Credit with the house as collateral) through a different bank. The market has definitely reduced the value of our house. Our assessed value is now 305,000 (down from 359,000) but the short sale price is 199,00 as we have not been able to sell the house for two years through normal channels at an already reduced price. The bank that we have the second mortgage through has left a message about not making our LOC payment already (it's only late a few days as of right now). Should we call them back and let them know our financial situation and that our house is up for short sale? I don't want them to think I am deliberately not paying. We can't afford the payments anymore as I was laid off work and my husband was on workers comp which has now run out and he is on extended leave of absence without benefits. We are putting all our money into renting in an area that has job potential. We live in a very rural area 45 minutes from a larger city. It's the only way we will survive. We still have three children to take care of. We have to do this. Much appreciated.... Jeri Bill,

I just found this article and it has addressed many of my concerns with a short sale. My house is currently up for short sale. This month is the first month we have not paid our mortgage. My question is this, we have a first mortgage through one bank and a second (it is a Line of Credit with the house as collateral) through a different bank. The market has definitely reduced the value of our house. Our assessed value is now 305,000 (down from 359,000) but the short sale price is 199,00 as we have not been able to sell the house for two years through normal channels at an already reduced price. The bank that we have the second mortgage through has left a message about not making our LOC payment already (it’s only late a few days as of right now). Should we call them back and let them know our financial situation and that our house is up for short sale? I don’t want them to think I am deliberately not paying. We can’t afford the payments anymore as I was laid off work and my husband was on workers comp which has now run out and he is on extended leave of absence without benefits. We are putting all our money into renting in an area that has job potential. We live in a very rural area 45 minutes from a larger city. It’s the only way we will survive. We still have three children to take care of. We have to do this.

Much appreciated…. Jeri

]]> By: Bill Gassett http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-5357 Bill Gassett Mon, 19 Mar 2012 22:06:23 +0000 http://massrealestatenews.com/?p=94#comment-5357 Shelly this is the perfect example of the ludicrous thinking that goes on with some lenders/investors. It is completely ridiculous that most lenders will force a buyer to be delinquent but this is what most of them do. The lender can do whatever they want to do. They don't have to grant a short sale unless they want to. I do not think you will be able to get a "standard" loan from a regular lender if you are in default with a short sale. Shelly this is the perfect example of the ludicrous thinking that goes on with some lenders/investors. It is completely ridiculous that most lenders will force a buyer to be delinquent but this is what most of them do. The lender can do whatever they want to do. They don’t have to grant a short sale unless they want to. I do not think you will be able to get a “standard” loan from a regular lender if you are in default with a short sale.

]]> By: Shelley http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-5355 Shelley Mon, 19 Mar 2012 18:49:17 +0000 http://massrealestatenews.com/?p=94#comment-5355 Hi Bill. Thank you for the helpful information. We have been trying to short sell our house since December. We've had an offer since December and have been waiting for the notice on the short sale. Because of wanting to get a house in under 3 years and not wanting to completely ruin our credit, we have kept making our the mortgage payments. I just talked with our lender, Wells Fargo Home Mortgage, and they informed me that our private investor will not even consider the short sale until we are at least 31 days past due on payment. Since my husband's job required us to move, we are no longer in the house. We have no choice but to sell. Are there no other options? Can a lender require such a thing? I really feel like they are putting us in a horrible position. I know we can't qualify for an FHA loan with default payments, but do you think we'll be able to get some other kind of loan? We have good credit now, but who knows what it will look like in the end. Hi Bill. Thank you for the helpful information. We have been trying to short sell our house since December. We’ve had an offer since December and have been waiting for the notice on the short sale. Because of wanting to get a house in under 3 years and not wanting to completely ruin our credit, we have kept making our the mortgage payments. I just talked with our lender, Wells Fargo Home Mortgage, and they informed me that our private investor will not even consider the short sale until we are at least 31 days past due on payment. Since my husband’s job required us to move, we are no longer in the house. We have no choice but to sell. Are there no other options? Can a lender require such a thing? I really feel like they are putting us in a horrible position. I know we can’t qualify for an FHA loan with default payments, but do you think we’ll be able to get some other kind of loan? We have good credit now, but who knows what it will look like in the end.

]]> By: Bill Gassett http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-4857 Bill Gassett Thu, 02 Feb 2012 23:16:03 +0000 http://massrealestatenews.com/?p=94#comment-4857 Amanda you will be fine as long as you continue to make payments. The credit reporting will not change until after the short sale is completed and if you make payments your credit score will not be effected that much. Amanda you will be fine as long as you continue to make payments. The credit reporting will not change until after the short sale is completed and if you make payments your credit score will not be effected that much.

]]> By: Amanda http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-4847 Amanda Thu, 02 Feb 2012 18:01:54 +0000 http://massrealestatenews.com/?p=94#comment-4847 Hi Bill, Thanks for the article, it is very informative! My family is going to attempt a short sale, but we were planning on living in it while we're doing that, for up to 3 months, then if it does not sell we are planning on just foreclosing on it. But we are planning on paying for it the entire time it is up for short sale as long as that is a route we can take. My question is how long does it take for the lender to report it to the credit agency? My concern is it will affect us renting another home if we do not move out immediately after starting short sale process. Thanks for any advice you have! Hi Bill, Thanks for the article, it is very informative! My family is going to attempt a short sale, but we were planning on living in it while we’re doing that, for up to 3 months, then if it does not sell we are planning on just foreclosing on it. But we are planning on paying for it the entire time it is up for short sale as long as that is a route we can take. My question is how long does it take for the lender to report it to the credit agency? My concern is it will affect us renting another home if we do not move out immediately after starting short sale process. Thanks for any advice you have!

]]> By: Bill Gassett http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-4829 Bill Gassett Wed, 01 Feb 2012 19:31:26 +0000 http://massrealestatenews.com/?p=94#comment-4829 Dorothy assuming that the estate wants to short sale the property you are going to want to work with a qualified short sale Realtor. If you need help with this email me and I can put you in touch with a good agent in your area. Dorothy assuming that the estate wants to short sale the property you are going to want to work with a qualified short sale Realtor. If you need help with this email me and I can put you in touch with a good agent in your area.

]]> By: Dorothy Parker http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-4828 Dorothy Parker Wed, 01 Feb 2012 19:24:41 +0000 http://massrealestatenews.com/?p=94#comment-4828 I am the executrix of my sister's estate. I have informed the mortgage company that the estate is unable to continue the purchase of the house by paying the mortgage. I intend to send them one final payment as the estate have no more funds. What is my next step in this situation? I am the executrix of my sister’s estate. I have informed the mortgage company that the estate is unable to continue the purchase of the house by paying the mortgage. I intend to send them one final payment as the estate have no more funds. What is my next step in this situation?

]]> By: Bill Gassett http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-4776 Bill Gassett Thu, 26 Jan 2012 20:40:10 +0000 http://massrealestatenews.com/?p=94#comment-4776 Chris - the seller can do whatever they wish as they still own the home. The lender however, would more than likely have a problem with the seller collecting rent. Of course the lender is not going to know this and it would not be in your best interest to create waves. Chris – the seller can do whatever they wish as they still own the home. The lender however, would more than likely have a problem with the seller collecting rent. Of course the lender is not going to know this and it would not be in your best interest to create waves.

]]> By: Chris Miller http://massrealestatenews.com/stop-making-mortgage-payments-during-a-short-sale/comment-page-1/#comment-4775 Chris Miller Thu, 26 Jan 2012 20:33:02 +0000 http://massrealestatenews.com/?p=94#comment-4775 I have a question regarding early possession during a short sale. My situation is this: the owners are gone and their property is being sold as a short sale. We have been through the process of all the paperwork and approvals and now are just waiting for USDA to approve. We asked for early possession until it closes. Our realtor drafted a contract and submitted our request asking to move in prior to closing which has been given an estimated date of Feb 27. The seller countered our offer and requested $30 a day. Granted this house is being sold 'as is". At first we were annoyed at this request considering we had to have the utilities put in our name prior to the inspection process and now instead of having the house re-winterized we have left the utilities in our name. After the inspection there were multiple repairs noted. Some were general safety issues and another a code violation. None of these issues we asked to have repaired due to knowing the sellers position with it being a short sale for sale as is. I wasn't aware a seller could request rent during a short sale. What do you recommend? I have a question regarding early possession during a short sale. My situation is this: the owners are gone and their property is being sold as a short sale. We have been through the process of all the paperwork and approvals and now are just waiting for USDA to approve. We asked for early possession until it closes. Our realtor drafted a contract and submitted our request asking to move in prior to closing which has been given an estimated date of Feb 27. The seller countered our offer and requested $30 a day. Granted this house is being sold ‘as is”. At first we were annoyed at this request considering we had to have the utilities put in our name prior to the inspection process and now instead of having the house re-winterized we have left the utilities in our name. After the inspection there were multiple repairs noted. Some were general safety issues and another a code violation. None of these issues we asked to have repaired due to knowing the sellers position with it being a short sale for sale as is. I wasn’t aware a seller could request rent during a short sale. What do you recommend?

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