Windermere | Orlando | Dr. Phillips Short Sale Frequently Asked Questions
Suffering from financial hardship is difficult for any family but with the assistance of a CDPE certified real estate agent, know that you are working with a trained professional who understand much more than real estate. Wendy Morris doesn’t merely assist in selling Central Florida real estate; she helps save homeowners dreams and will use her skill, knowledge to help save your Central Florida home.
Frequently Asked Questions
As the broker of record of Wendy Morris Realty I receive many phone calls and inquiries about how and what people should do in short sale situations and thought I would share with my website readers the most frequently asked questions.
We provide a helpful resource for Central Florida Homeowners with additional Short Sale information
Do I Qualify For A Short Sale?
The qualifications for a short sale include many variables:
- Financial Hardship – Something changed in income and has impacted paying the mortgage on time.
- Monthly Income Shortfall – “You have more month than money.” A lender will need verification and proof you cannot or will not be able to make your monthly payment.
- Insolvency – No liquid assets and the inability to pay down on your home loan.
What Is A Mortgage Modification?
A loan modification or mortgage modification allows the lender to adjust or change any or all of the following:
- Your interest rate
- Your principal balance (based on current market value)
- Your loan terms
A loan modification may help to keep homeowners in their property who cannot afford their current mortgage payments.
Find out more information on Central Florida short sale assistance
Why Would A Lender Modify My Mortgage?
Lenders would prefer to assist homeowners to reduce monthly payments rather than foreclose on the property. In many cases property value is adjusted and monthly payments are lowed. Foreclosures to a lender can be costly and can eat up to 35-50% of the value of the property. For lenders sometimes this option makes sense.
What Do I Need To Qualify For A Mortgage Modification?
According to the Making Home Affordable website, you will need the following information for your lender to consider a modification:
- Your monthly mortgage statement on first and second mortgages which include home equity lines and lines of credit
- Minimum monthly payments on credit cards and account balance
- Other debt such as student loans and car loans, monthly payments and account balance
- Last Income tax return filed
- Asset and banking information, checking, savings and retirement accounts
- Gross income, that means before federal taxes for your entire household. Lender may request recent pay stubs and/ or other means of verifying your monthly gross income.
A letter of hardship which describes your situation and the circumstances that has caused your hardship. In many cases the loss of income or increase in expenses are due to divorce, death, illness or job loss.
Have questions on Central Florida foreclosures and Short Sales?
How Do I Qualify For A Mortgage Modification?
A big mistake is to ignore letters, calls and legal documents from your lender. It is important to call your lender immediately. As a short sale specialist and CDPE I understand the red tape and hoops you have to jump through to speak to the right person. If for some reason you call the customer service line to seek assistance and if there is a lack of understanding or awareness do yourself a favor and request to speak to the following departments.
- Loss Mitigation
- Mortgage Modification
To find out if you qualify for a loan modification, the U.S. government offers an eligibility test on their site for a government sponsored loan modification called Homes Affordability and Stability Program. (HASP).
View a list of lenders and mortgage services that work with the U.S. government for a loan modification.
What Is A Home Affordable Refinance?
Refinance your home and possibly lower your mortgage payment. If your mortgage is owned by Fannie Mae or Freddie Mac, chances are you may be eligible for a Home Affordable Refinance.
What If I Don’t Qualify, Can’t Afford My Home, And Owe More Than It’s Worth?
If your lender, mortgage company or loan servicer will not work with you to adjust your monthly mortgage payment consider a short sale. Certified Distressed Property Expert® designated real estate agents have undergone extensive training in how to handle short sales from beginning to end.
A short sale will allow you to sell your property for less than what you currently owe on your home loan in order to avoid foreclosure. Speak to us today to see if you qualify.
What Are The Qualifications For A Home Affordable Refinance?
According to the U.S. government, the following qualifications must be met:
- You are the home owner and occupant of a one-to four-unit home
- Your loan is owned by Fannie Mae or Freddie Mac
- When applying you must be current on your mortgage payment and haven’t been more than 30 days late in the past 12 months.
- If your home loan is less than 12 months you must be on time and current
- Your first mortgage balance is the same or a little less than the value of your home.
- You can verify enough income to support your new monthly mortgage payments and help ensure the long term affordability of the monthly payment and home loan.
- If you are still reading chances are you should review our main site on selling a short sale in Central Florida.
Do I have other options? Yes for sure please click the link below
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