In other words, 97% conventional financing truly does exist. We know that every single mortgage applicant’s situation is completely different ranging from their income, to credit history, to property type; but in many cases the approval of a conventionally financed home should not automatically be deemed unattainable with such a low down payment. I’ve been in this industry for years and years and have learned nothing should ever be assumed. Often compensatory factors can put a client within easy reach of an attractive interest rate or mortgage product.
The short sale process as we know it today is far more systematized than it was when these transactions began in earnest several years ago. The lenders in particular have gotten better in dealing with them. Overall, in addition to the Realtors who are becoming short sale certified, the other major players are getting in the game:
A mortgage loan requires substantiation of so many seemingly random bits of proof; but they are ultimately synchronized to meet an objective. Having the data that keeps the flow of detailed communication is not intended to put a buyer through the wringer – it is so they come out on the other side of a deal with the loan product that suits their means.
With people living longer in general, there are fortunately some opportunities for family members to assist one another in certain potentially dependent situations. This is not a widely-publicized program, but it can be a life saver and offer some tremendous opportunities.
Fannie Mae allows a relative to purchase a home for elderly or disabled family members.
What I’m saying is, even if it means paying off a minor balance you are disputing or submitting a letter to rescind a dispute so your mortgage process can proceed, you can move on with your life (and home purchase!).
How do our friends at Wikipedia define playing chicken? “The principle of the game is that while each player prefers not to yield to the other, the worst possible outcome occurs when both players do not yield.”
At the end of the day, sometimes you need to back down in order to win.