When this Hamden, CT couple was relocated across the country for new employment, they found themselves prisoners in their home with $100,000 of negative equity and no way to cover the loss.
Committed to “doing the right thing and preserving their credit”, this couple wanted to keep up the mortgage payments as long as they could. While their loan was serviced by Chase, the loan was actually owned by Fannie Mae who had recently updated their guidelines to allow short sales to be approved for current borrowers in situations of employment based relocation.
It took just over a month to secure a strong buyer for the property and a short sale package headed to the lender. Despite their own guidelines designed to approve short sales in this exact scenario…two months later Chase declined the short sale citing the owners lack of default as the reason.
Several months passed and having already relocated and now supporting two housing payments, the sellers quickly fell behind on the mortgage. We resubmitted the short sale with the sellers now in default, and after some negotiations over a promissory note the short sale was finally approved!
OWED: $240,000
APPROVED AND SETTLED IN FULL WITH SELLERS CONTRIBUTING $5,000: $135,000
TOTAL TIME FRAME: 8 MONTHS
Last Updated on December 11, 2017 by Minna Reid