on Nov 26th, 2007Request for short sale package from Countrywide
If you are thinking about getting out from under your Countrywide mortgage in foreclosure or facing an ARM reset you can’t afford, listen up.
Do you have equity?
Equity is the difference between the price a real buyer would pay, and how much you owe.
Keep in mind things like real estate commissions and fix-it costs and a lot of other costs on the selling end. If I sell my house, I’ll collect maybe 93% of the selling price. Maybe 90%. Just count on it.
And on the loan side, many borrowers forget all the charges and fees and foreclosure expenses that have added to their loan. Some of the option ARMS prepayment penalties can really sting.
It’s all subject to negotiation but the sum of it is that your equity is smaller than you think.
Right now, the big issue is in appraisals. Lenders are running scared. They are not likely to accept your appraisal and they will always see things in their favor.
So after being realistic, can you afford a monthly payment that includes principal, interest and taxes and that reasonably pays for where you are living? In other words, can you afford to make the mortgage payment, including taxes and interests, assuming you have a loan at market rate?
If you can’t make the payments realistically, and you have little or no equity, or negative equity, consider a short sale. That means you must submit a detailed short sale package to Countrywide including specifics of what your house is worth, a contract by a buyer to buy the house at a reasonable price (80% of market maybe, but not 70% of market), and financial data explaining and proving your hardship.
This all goes into a short sale package. Also, you must negotiate how Countrywide reports your credit and how they handle their financial losses — they must agree not to pursue you in other words.
You can do this yourself. If you want help, visit my blog at www.MortgageReliefFormula.com and join the high quality list where I will give you instant access to my 25 page insider’s report Keep Your Home, and email you information on how to lower your mortgage payment without a new loan, slash your credit card debts without bankruptcy, and much more. Plus you can get invited to an upcoming telephone seminar. Privacy always respected. Thanks!
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Nice article! Enjoyed the reading.
I would suggest that you also let homeowners know that if their bank is willing to accept a ’short sale’, that they (Homeowner) will NOT make a profit.
By moving forward with a short-sale, the current homeowner must be willing to just ‘walk away’ from the house, realize that their credit may already be tanked, but more interested in NOT having a ‘foreclosure’ on their credit report!
Cody G.