We just received our first Nationstar Mortgage Short Sale
Approval. It was not easy, but it was worth it for my clients.
My clients own a condo in Kearny, NJ. After having their salaries cut, then being laid off, the mortgage payment become too much for them. Add in their rising property taxes and maintenance fees, and they had a legitimate hardship. They made the decision to Short Sale their NJ home.
After completing the Short Sale application, submitting a Hardship Letter and providing income and asset documentation, we waited for a response from Nationstar Mortgage. Finally, we heard back, and the answer was . . . no answer. My clients’ loan had mortgage insurance (MI), and Nationstar Mortgage could not issue an approval without consent of the MI company.
More waiting ensued, before the MI Company finally came back with a proposal: a Seller Contribution.
A Seller Contribution in a NJ Short Sale is simply a one-time cash payment that the sellers bring to the closing in exchange for the servicer or MI company consenting to the Short Sale. The MI Company was asking for a relatively modest Seller Contribution of $2,000.
Money is tight for my clients, as it is in most NJ Short Sales. But after thinking it over, the sellers agreed to the $2,000 Seller Contribution. From the Sellers’ perspective, their Kearny, NJ condo was more than 40% underwater, and the monthly mortgage payments were nearly equal to their entire take-home income. A one-time payment of $2,000 to wipe out this debt and find more affordable housing made sense.
After agreeing to the Seller Contribution, we received the Nationstar Short Sale Approval Letter. Outside of the Seller Contribution, the terms are very favorable to my clients. The sellers will not be responsible for any deficiency payment, and they are not being asked to sign a promissory note for any balance. As this was their primary residence, there will also be no income taxes due on the forgiven debt.
A Seller Contribution is not always required in a Short Sale, but it can be an effective tool to get your NJ Short Sale approved. If you would like to learn more about NJ Short Sales, visit my NJ Short Sale website for some resources and answers to commonly asked questions. You can also feel free to contact me for a confidential meeting to discuss your specific situation.
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