Client has a townhouse which he currently rents.  When the loan was originated he lived in unit, but relocated out of state for a job.  He's upside down and rent does not come near to covering expenses (mort, ins, taxes).  Making payments....mortgage is current.   What do I advise?

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The first question you should ask is "What do you want to do?"  If he is tired of paying the mortgage, then move into a short sale as the bank will NOT approve a loan mod on NON-Owner Occupied property.
I want to sell his property and earn a commission.  How many payments missed until I can open a file for a short sale?
You can do it NOW!  No need to enter delinquency
You do not need to have ANY missed payments!  Sorry for the question, but is this one of your first short sales?

Many SS, first one with One West / Indy Mac.  Looking for someone with One West experience that can comment on Short Sale file consideration with no missed payments.

The question was for assistance.  I was going to send you my ebook, but looks like you do not need it.  Good luck.

Hi Ken,

 

Sounds like a short sale, for sure.  Some agents advise clients to stop making payments.  I think that is very bad advice.  I can assure you that one dosen't have to be delinquent to complete a short sale with IndyMac/OWB.

 

If your client can continue to make the payments it will result in the least damage to his credit report.  Each time a payment is missed, that gets reported to the credit bureaus and he takes a big hit on his credit score.  Each successive missed payment takes an even bigger toll.  First missed payment gets re-reported as 60-days overdue along with the second missed payment. . . and it just keeps getting worse.  Missed payments do far more credit damage than the actual reporting of the short sale (settled for less than was owed.)

 

Good luck!

 

Clay

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