I received a call from a lady in October and she left me a message while I was traveling overseas. When I got back, I called her and she informed me that she was a military personnel and had been relocated once again and needed help with her home. Upon further consultations, we determined that she was 60% underwater on her home and had been trying for months with her bank to get a loan modification but they were refusing to help her !!
This lady had been posted overseas for 6 years and had continued to make her payments diligently. She moved back to the US and was transferred to another location. She called her bank to try for a loan modification based on her employment with the military services and was repeatedly denied on the HAMP program. Being bounced around from one department to another, she was at her wits end not knowing why she was not getting any help ! She knew her option was either to short sell or let it go to foreclosure.
I took on the short sell and gathered all her income documentation, comparable sales and listed her home for sale. We got multiple offers and interviewed the agents who wrote the offers. It is part of our listing service to ensure that the buyers are legitimate and have the financial capacity to come up with the money if the second lien demanded for money to close. The house had section 1 issues with rot and fungus and the buyer paid all cash and took on the burden of buying the home as is with the damage.
In 45 days from submissions to the bank, we received our shorts ale approvals. There was no deficiency judgement and the seller would receive a 1099-C, cancellation of debt and with the extension of the Mortgage debt relief act she now does not have to pay taxes on the difference ! She was ecstatic and sad at the same time. She wanted to keep her house, only if her lenders would have helped her. It is the story of many homeowners who are put into a corner because their lenders do not help them- that is a whole different can of worms waiting to be opened ! She is happy that the torment is over and expressed to me that there is a sense of guilt for not having fulfilled her mortgage obligation but was willing to do it if her lender would given her some reprieve.
This is the story of so many underwater homeowners, who go through this emotional turmoil and face the torment at the hands of their lenders who are not willing to help. Although the reports come in the news of 850,000 home owners having received loan modifications but the calculations being used by the lenders are so warped that millions of homeowners still struggle everyday and are unassisted.
If there is anyone out there reading this blog, who needs help or a friend or family member needs help, please contact us asap. There is a solution and we can help !