I have a big problem and I can't seem to get an answer from anyone. I don't want to bore you with the details but I need to lay the whole story out. My client has a Government job with top secret clearance. He cannot default on his loan at all. No short sale, no foreclosure and no lates on the mortgage payments. His wife lost her Job and they are living with the one income and he has never been late on the mortgage. Trying to be proactive, he called and initiated the process because his savings are quickly being depleted and it will become a struggle in 2 to 3 months to pay the mortgage and expenses or the family. He has 2 small children also. We had the house on the market and received an offer that meets what the Wells Fargo's appaisal came in at. The buyers are waiting patiently for an aswer. My question is, Has anyone had the experience of trying to get a short sale done when there is no default? Default is coming but at this ponit, default means his termination as per his superiors who researched the companies stand on that issue. We were told that he cannot go 31 days and then get the account back up to date on day 32. He has to stop paying in order for them to start the process of contract review. Any suggestions? We are in dire straits right now. Any help would be greatly appreciated. We called Hud and explained the situation to no avail.
Perhaps a short sale isn't the best solution for this person.
HUD: If you are unemployed and depending on your situation, MHA's Home Affordable Unemployment Program (UP) may reduce your mortgage payments to 31 percent of your income or suspend them altogether for 12 months or more.
Only the wife is unemployed and the husband still works. They were declined twice for any kind of loan modification. They refinanced last year to get the payments lowered. No cash out, just a rate change. Thanks for the response and the link.