SS - Do I have to be behind on payments?

[jrockfl]

Do I have to be behind on payments for the lender to accept my ss?

[hamp33]

If your payments are current, why would a lender accept less?

[jrockfl]

Because I can no longer afford to make the payment and will let it foreclose

[hthompson001]

and will let it foreclose

Honestly, trying to bully the lender in to getting what you want by saying you will "let it foreclose" will not help you in the long run.

[jrockfl]

I wasn't trying to bully the lender, just stating the truth.

Have either one of you completed a short sale?

[hthompson001]

I have not done a Short Sale as the borrower only as the purchaser.  The lender's main motivation will be once your mortgage becomes past due.  The lenders don't (and rightfully so) want to incur anymore loss than necessary.  They won't be motivated to accept less than full payment unless the loan is >90 days past due.  Is the property currently for sale?

Another note to remember if/when you do get into a SS situation as the borrower, make sure the difference in what you owe and what the final SS comes to is NOT taxable to you.  If you're not careful you could get a big suprise from uncle sam in the form of a tax bill.

[gigig]

Are you able to prove that there is a hardship and you will no longer be able to afford the home?

[Lendinghand]

Have you tried modifying your loan program so that you can keep your home?

[deaaak]

In order for the lender to consider a short sale on a performing loan you will have to demonstrate, in writing, that you no longer can afford the property and that you will not be able to afford it any time soon.  You must prove that your financial hardship is not just temporary.

You will need to provide a compelling hardship letter, a complete financial statement and any supporting documents, ie bank statements, pay stubs, tax returns, medical bills etc.

Are you sure your property is overleveraged?  Do you have it listed with a realtor?  Do you have a buyer already? 

[yrush2000]

Yes you can SS a loan that is current.  My friend recently did this.  He SS his home for around 210K and owed 330K.  Market declined and home was sold for FMV however.  He then bought a new home for 380K same time.  His FICO is well over 700 and earned a low 6 figure income.  He just wanted out of the home.  Was to small, and the area started to decline and some crime was in area.  His loan was with Wells Fargo I believe and I think they did his new loan as well.

He used a lawyer to do all the work and get this done.  He continued to make his payments till house was sold.

[aksay]

That is great news if that is the case. We are currently in a situation with our house because we will need to refi 10/09 and there is no way that we will be able to because of market value. We are in CA where the housign market went crazy with false numbers and unfortunately my husband (prior to me knowing him) bought then.  Now we will need to a)walk away b)SS and we dont' want a foreclosure on his credit. he has a FICO of 780+ and want to SS the property without lates affecting his credit. 

two questions:
Can we have someone do a SS for us while we are current based on market conditions and the inability to refi?

Q for YRUSH2000:
Would your friend mind e-mailing me his lawyer info or info regarding his SS while current?


Thanks