How easy is it to get a mortgage lender to agree to a short sale and waive the remaining debt?
dflog asked:
I have two homes with one mortgage on each (same lender). One home is now in negative equity and has a high interest rate on the mortgage. Even though the bank refinanced the home only two years ago as an 80/20 loan, they will not allow me to refinance now. I thought about renting until the market get’s better but I can not cover all of the costs.
PATRICK
I have two homes with one mortgage on each (same lender). One home is now in negative equity and has a high interest rate on the mortgage. Even though the bank refinanced the home only two years ago as an 80/20 loan, they will not allow me to refinance now. I thought about renting until the market get’s better but I can not cover all of the costs.
PATRICK
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WILFREDO
Its easier to get the bank to approve a short sale recently. You will likely have to be several months behind and it will be an alternative to a foreclosure.
Check with your lender as they may issue a 1099 to you for the loss they incur. Then you are stuck with the taxes.
Its really tough out there and the market just keeps getting worse. I have been a RE appraiser for 23 years and never seen the market this bad.
Sorry for the bad news;
Max