if its a rental property you are stuck with underwater. the programs out there are only for owner occupied homes. as for as short sales go you might as well foreclose because your not going to buy another house for 5years because lenders look at short sales like foreclosure.

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Posted by ProudLSUMom

Baton Rouge

Member since Sep 2007

3302 posts

Posted on 3/26/12 at 12:36 pm to hawkeye007

quote:
if its a rental property you are stuck with underwater. the programs out there are only for owner occupied homes. as for as short sales go you might as well foreclose because your not going to buy another house for 5years because lenders look at short sales like foreclosure.

I briefly looked at those programs and I don't think she qualifies for any of them. I will look at them more closely in the next few days. Yes, we realize a short sale or foreclosure will mess up her credit for a long time. We don't want her to do that.

I don't even think she could sell it as a short sale. There is a lawsuit against the condo owner's association and the COA also has a lawsuit against the bank that removed their modad. No lender wants to touch that property.

My husband and I want to get her out of there so badly.

This post was edited on 3/26/12 at 12:41 pm

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Posted by ZereauxSum

Lot 23E

Member since Nov 2008

10176 posts

Posted on 3/26/12 at 1:09 pm to hawkeye007

I'll echo what Hawkeye said as far as gov help for investors. As far as I know there really isn't any. In the situations that Htown put forth, there is the possibility of a private modification, but this is at the discretion of the lender and might be tough to pull off since it's not losing money.

Igoringa's hypo might work, but it would take some negotiations. Also keep in mind that the terms probably won't be good with a private mod, since the gov isn't giving the lender anything as an incentive. I would recommend talking to a real estate attorney.

Oh, and one other thing about forclosure vs short sales. Based on the research I've done, the initial ding to your credit is basically the same, but doing a SS could mean that you get back into a house sooner. FHA guidleines state that you can qualify for a new loan 3 years after your short sale closes. I believe it's 4-7 for a foreclosure and the down payment requirement is greater. I suspect that Fannie and Freddie will eventually loosen their restrictions as well.

Also, a lender doing a manual underwriting might look at a SS more favorably as it shows that you made some effort to cooperate with your previous lender.

Anyway, sorry to ramble. Hope this helps.

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