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Effective Demand
ParticipantCheck AZ foreclosure laws but if the loan is non-recourse (a simple quicky google search says AZ purchase money are non-recourse regardless of investor or OO.. check yourself) and no second liens and all that…
I’d try a short sale while paying as agreed. Offer the servicers that option saying it is that or foreclosure and neither party wins with foreclosure. Some servicers will take that offer and so if you get a buyer and you paid as agreed up to the end then your credit isn’t hit very hard. What really drops the FICO scores in the rolling late payments on foreclosures. Your credit hit will be a one off hit saying the account was paid off for less than full amount (I’ve heard that is only a 50-60 point fico hit but that would be something you need to investigate).
I think this option gives you the maximum FICO at the end and the maximum amount in the bank. I really wouldn’t risk too much more money on the condo than that but your desire to maintain a high FICO is up to you.
On your list of options I definitely wouldnt do #2 (I doubt anything will change in 40 months and so your back in the same spot) or #3 (putting most of your money into a depreciating asset) if we call my option #5.. then I think #5, #4, #1 are the order in which I would look at things. But #4 and #1 may switch due to desirable housing availability (not able to buy right now) or some other reason to maintain a high fico score.
Best of luck.
ParticipantCheck AZ foreclosure laws but if the loan is non-recourse (a simple quicky google search says AZ purchase money are non-recourse regardless of investor or OO.. check yourself) and no second liens and all that…
I’d try a short sale while paying as agreed. Offer the servicers that option saying it is that or foreclosure and neither party wins with foreclosure. Some servicers will take that offer and so if you get a buyer and you paid as agreed up to the end then your credit isn’t hit very hard. What really drops the FICO scores in the rolling late payments on foreclosures. Your credit hit will be a one off hit saying the account was paid off for less than full amount (I’ve heard that is only a 50-60 point fico hit but that would be something you need to investigate).
I think this option gives you the maximum FICO at the end and the maximum amount in the bank. I really wouldn’t risk too much more money on the condo than that but your desire to maintain a high FICO is up to you.
On your list of options I definitely wouldnt do #2 (I doubt anything will change in 40 months and so your back in the same spot) or #3 (putting most of your money into a depreciating asset) if we call my option #5.. then I think #5, #4, #1 are the order in which I would look at things. But #4 and #1 may switch due to desirable housing availability (not able to buy right now) or some other reason to maintain a high fico score.
Best of luck.
ParticipantCheck AZ foreclosure laws but if the loan is non-recourse (a simple quicky google search says AZ purchase money are non-recourse regardless of investor or OO.. check yourself) and no second liens and all that…
I’d try a short sale while paying as agreed. Offer the servicers that option saying it is that or foreclosure and neither party wins with foreclosure. Some servicers will take that offer and so if you get a buyer and you paid as agreed up to the end then your credit isn’t hit very hard. What really drops the FICO scores in the rolling late payments on foreclosures. Your credit hit will be a one off hit saying the account was paid off for less than full amount (I’ve heard that is only a 50-60 point fico hit but that would be something you need to investigate).
I think this option gives you the maximum FICO at the end and the maximum amount in the bank. I really wouldn’t risk too much more money on the condo than that but your desire to maintain a high FICO is up to you.
On your list of options I definitely wouldnt do #2 (I doubt anything will change in 40 months and so your back in the same spot) or #3 (putting most of your money into a depreciating asset) if we call my option #5.. then I think #5, #4, #1 are the order in which I would look at things. But #4 and #1 may switch due to desirable housing availability (not able to buy right now) or some other reason to maintain a high fico score.
Best of luck.
ParticipantCheck AZ foreclosure laws but if the loan is non-recourse (a simple quicky google search says AZ purchase money are non-recourse regardless of investor or OO.. check yourself) and no second liens and all that…
I’d try a short sale while paying as agreed. Offer the servicers that option saying it is that or foreclosure and neither party wins with foreclosure. Some servicers will take that offer and so if you get a buyer and you paid as agreed up to the end then your credit isn’t hit very hard. What really drops the FICO scores in the rolling late payments on foreclosures. Your credit hit will be a one off hit saying the account was paid off for less than full amount (I’ve heard that is only a 50-60 point fico hit but that would be something you need to investigate).
I think this option gives you the maximum FICO at the end and the maximum amount in the bank. I really wouldn’t risk too much more money on the condo than that but your desire to maintain a high FICO is up to you.
On your list of options I definitely wouldnt do #2 (I doubt anything will change in 40 months and so your back in the same spot) or #3 (putting most of your money into a depreciating asset) if we call my option #5.. then I think #5, #4, #1 are the order in which I would look at things. But #4 and #1 may switch due to desirable housing availability (not able to buy right now) or some other reason to maintain a high fico score.
Best of luck.
Participant[quote=kcal09]I’ve made offers with a preapproval letter from a lender and the amount was higher than the accepted cash offer and still they accepted the lower cash offer. Does anybody know why they would rather accept a lower cash offer than a mortgage if it has already been approved?[/quote]
Think of it as a risk/reward scenario.
On one end of the spectrum is a non-contingent cash offer. You are basically guaranteed to close and close quickly. There is a premium paid by the bank for this lower risk and liquidity.
On the other end of the spectrum would be a FHA type deal (or worse, FHA + some sort of state DPA) you’ll have appraisal issues, qualification issues, long underwriting times, buyers could lose their jobs during that time, etc. But the banks get rewarded for that risk by getting a higher price.
Preapproval doesn’t mean the property will appraise, will pass home inspection or that you’ve gone through full underwriting and cleared all the hurdles.
Participant[quote=kcal09]I’ve made offers with a preapproval letter from a lender and the amount was higher than the accepted cash offer and still they accepted the lower cash offer. Does anybody know why they would rather accept a lower cash offer than a mortgage if it has already been approved?[/quote]
Think of it as a risk/reward scenario.
On one end of the spectrum is a non-contingent cash offer. You are basically guaranteed to close and close quickly. There is a premium paid by the bank for this lower risk and liquidity.
On the other end of the spectrum would be a FHA type deal (or worse, FHA + some sort of state DPA) you’ll have appraisal issues, qualification issues, long underwriting times, buyers could lose their jobs during that time, etc. But the banks get rewarded for that risk by getting a higher price.
Preapproval doesn’t mean the property will appraise, will pass home inspection or that you’ve gone through full underwriting and cleared all the hurdles.
Participant[quote=kcal09]I’ve made offers with a preapproval letter from a lender and the amount was higher than the accepted cash offer and still they accepted the lower cash offer. Does anybody know why they would rather accept a lower cash offer than a mortgage if it has already been approved?[/quote]
Think of it as a risk/reward scenario.
On one end of the spectrum is a non-contingent cash offer. You are basically guaranteed to close and close quickly. There is a premium paid by the bank for this lower risk and liquidity.
On the other end of the spectrum would be a FHA type deal (or worse, FHA + some sort of state DPA) you’ll have appraisal issues, qualification issues, long underwriting times, buyers could lose their jobs during that time, etc. But the banks get rewarded for that risk by getting a higher price.
Preapproval doesn’t mean the property will appraise, will pass home inspection or that you’ve gone through full underwriting and cleared all the hurdles.
Participant[quote=kcal09]I’ve made offers with a preapproval letter from a lender and the amount was higher than the accepted cash offer and still they accepted the lower cash offer. Does anybody know why they would rather accept a lower cash offer than a mortgage if it has already been approved?[/quote]
Think of it as a risk/reward scenario.
On one end of the spectrum is a non-contingent cash offer. You are basically guaranteed to close and close quickly. There is a premium paid by the bank for this lower risk and liquidity.
On the other end of the spectrum would be a FHA type deal (or worse, FHA + some sort of state DPA) you’ll have appraisal issues, qualification issues, long underwriting times, buyers could lose their jobs during that time, etc. But the banks get rewarded for that risk by getting a higher price.
Preapproval doesn’t mean the property will appraise, will pass home inspection or that you’ve gone through full underwriting and cleared all the hurdles.
Participant[quote=kcal09]I’ve made offers with a preapproval letter from a lender and the amount was higher than the accepted cash offer and still they accepted the lower cash offer. Does anybody know why they would rather accept a lower cash offer than a mortgage if it has already been approved?[/quote]
Think of it as a risk/reward scenario.
On one end of the spectrum is a non-contingent cash offer. You are basically guaranteed to close and close quickly. There is a premium paid by the bank for this lower risk and liquidity.
On the other end of the spectrum would be a FHA type deal (or worse, FHA + some sort of state DPA) you’ll have appraisal issues, qualification issues, long underwriting times, buyers could lose their jobs during that time, etc. But the banks get rewarded for that risk by getting a higher price.
Preapproval doesn’t mean the property will appraise, will pass home inspection or that you’ve gone through full underwriting and cleared all the hurdles.
Participanthttp://www.fidelityasap.com
http://www.priorityposting.comOnce the Notice of Trustee sale is filed the trustee sale posting companies will display it.. there are several different trustee sale posting companies so if you let me know who the trustee sale company is I will let you know which one to look out for.
While there are servicers & locations that let borrowers sit long times without paying. Different servicers have different policies and those policies can be dependent on local market conditions as well as specific circumstances of the home.
If a NOD/NTS is filed the servicer is at least keeping their option open to take the home back. If NTS is filed I don’t think there is much way to ease your friends mind as the only way to see that the bank is “bluffing” is to see if the auction is postponed on the morning of the sale. Not much comfort there.
Participanthttp://www.fidelityasap.com
http://www.priorityposting.comOnce the Notice of Trustee sale is filed the trustee sale posting companies will display it.. there are several different trustee sale posting companies so if you let me know who the trustee sale company is I will let you know which one to look out for.
While there are servicers & locations that let borrowers sit long times without paying. Different servicers have different policies and those policies can be dependent on local market conditions as well as specific circumstances of the home.
If a NOD/NTS is filed the servicer is at least keeping their option open to take the home back. If NTS is filed I don’t think there is much way to ease your friends mind as the only way to see that the bank is “bluffing” is to see if the auction is postponed on the morning of the sale. Not much comfort there.
Participanthttp://www.fidelityasap.com
http://www.priorityposting.comOnce the Notice of Trustee sale is filed the trustee sale posting companies will display it.. there are several different trustee sale posting companies so if you let me know who the trustee sale company is I will let you know which one to look out for.
While there are servicers & locations that let borrowers sit long times without paying. Different servicers have different policies and those policies can be dependent on local market conditions as well as specific circumstances of the home.
If a NOD/NTS is filed the servicer is at least keeping their option open to take the home back. If NTS is filed I don’t think there is much way to ease your friends mind as the only way to see that the bank is “bluffing” is to see if the auction is postponed on the morning of the sale. Not much comfort there.
Participanthttp://www.fidelityasap.com
http://www.priorityposting.comOnce the Notice of Trustee sale is filed the trustee sale posting companies will display it.. there are several different trustee sale posting companies so if you let me know who the trustee sale company is I will let you know which one to look out for.
While there are servicers & locations that let borrowers sit long times without paying. Different servicers have different policies and those policies can be dependent on local market conditions as well as specific circumstances of the home.
If a NOD/NTS is filed the servicer is at least keeping their option open to take the home back. If NTS is filed I don’t think there is much way to ease your friends mind as the only way to see that the bank is “bluffing” is to see if the auction is postponed on the morning of the sale. Not much comfort there.
Participanthttp://www.fidelityasap.com
http://www.priorityposting.comOnce the Notice of Trustee sale is filed the trustee sale posting companies will display it.. there are several different trustee sale posting companies so if you let me know who the trustee sale company is I will let you know which one to look out for.
While there are servicers & locations that let borrowers sit long times without paying. Different servicers have different policies and those policies can be dependent on local market conditions as well as specific circumstances of the home.
If a NOD/NTS is filed the servicer is at least keeping their option open to take the home back. If NTS is filed I don’t think there is much way to ease your friends mind as the only way to see that the bank is “bluffing” is to see if the auction is postponed on the morning of the sale. Not much comfort there.
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