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Short Sale Question. Good Credit 689. Income $85,000/year

1. I am $4,800 (3 months) behind on my mortgage and I owe more than my home is worth. Am I eligible for short sale or is my only option foreclosure or bankruptcy? 2. Will I still have to pay property taxes, while negotiating the short sale? Thanks. by SarahZlee1953498 from Denver, Colorado. Mar 20th 2018 Reply


Hello and thank you for providing as much information as possible. You have options if you want to stay in the home there are programs in your state that will help you in the prevention of foreclosure. Don't really look at your credit because if you are behind then you will reflect those mortgage lates on your credit report. There is also a direct response to the bank that Holds your loan that can allow for a partial payment of the outstanding balance to stop foreclosure precedings. Contact is at www.onlinemortgagesourse.com we will happy to help you futhher discuss this matter.

Mar 20th 2018
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Chris Neuswanger (mtnmortgageguy)
#4 ranked lender in Colorado - 87 contributions

There are a lot of parts to finding an answer to this question. I would call your current servicer and ask them what your options are for a loan modification, that can reset your payments to a lower level. It also depends on how underwater you are and do you want to keep the house until you again have equity in it, or cut your losses. Don't bother paying the taxes if you are going to let the house go, the lender will pay those when they finally end up with the house or it is sold in a short sale. Home prices in Denver have skyrocketed lately, you might ask a Realtor what you could sell for, it might be more than you think.

Mar 20th 2018
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,656 contributions

Only your existing lender can answer this for you. Call them.

Mar 21st 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,266 contributions

Much more info needed to address your particular scenario, but my guess is probably not. Understand that if your credit is 689, its unlikely your 3 delinquent payments are showing on your credit report.. once they do, your score will drop significantly.. First, you make nearly $7100 per month.. and the mortgage payment is $1600 or about 23% of your income.. Most lenders won't do a short sale if your payment is under 31% of your income. This will all be verified by the lender when you apply for a short sale.. they will require your tax returns, W2's, 6 to 12 months of bank statements and other debt statements, and from all that info, they make a determination as to whether or not hey will allow a short sale.. 2nd, if you do a short sale or a foreclosure, Colorado laws allow the lender to come after you for the deficit.. FEDERAL laws require your lender work with you to assist you in keeping your home.. but if you just don't want it any more and don't take the steps to catch up.. then they will foreclose, and it will cost you.. But regardless, you need to contact your lender and talk with them first.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 22nd 2018
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