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Avoid Being Misled By Mortgage Lenders

Avoid Being Misled by Mortgage Lenders

A lot of homeowners are finding that their homes are selling for a lot less than what's owed on the mortgage. Some banks or mortgage holders will agree to allow a property to be sold through a Realtor rather than foreclosure, even if the proceeds of the sale will not cover the amount due on the mortgage. This is what's known as a "short" sale. This may make sense in some cases if the lender agrees to waive any deficiency. You should always make sure that the lender confirms in writing that the deficiency has been waived.
Ref. https://abcnews.go.com/WN/story?id=4603715&page=1

Lenders Mortgage Misled Avoid

Yes this is very important when your selling your home and will be short on the money owed. You do not want to pay the difference on a house you are not living in. This is a trick that some use to catch you unaware. They will say one thing but if it is not in writing then it does not happen.

Avoid Being Misled By Mortgage Lenders History & Civil Business Politics

If a person was in hardship this would be a good way out of some major debt. I can see some being tricked and yes getting that signed agreement for the options would be very wise.

Would having the difference waived effect your ability to buy a different house in a negative manner?

Lenders Mortgage Misled Avoid

If the difference is waiver and in the contract it can not reflect in a negative way on your credit. You credit report will show paid in full. This should assist you in having your credit rating go up some and make it easier for you to get a better rate on your next house.

At least that is how it was explained to me.

Lenders Mortgage Misled Avoid

This is a great way to get out of a bad mortgage then. I am betting that many would take that option. Does any one know the limit as to how much they would waive? For instance if the home is now valued at 120,000.

I assume you have to show financial hardship before they would consider this option though.

Avoid Being Misled By Mortgage Lenders

I think it has to do with the value of the home. IF you owe $140k on a $120 house you probably will not get the waiver. But if you owe $12oK on a house that sales for $118K then you may get the waiver with no problem. While it is still a short sale the closer the short sale is to the amount you owe the better chance of getting that written off. But you have to make sure it is in writing otherwise it is just a pipe dream.