tricks lenders use

sewa profile photo

i posted before but think i post too late at night for any responses...

wanted to ask two things:

1. a h/o im working with has a construction loan -- can i short sale this?

2. is there any danger that lenders use any of the info that i give them aobut my homeowner to try and get $$ from the h/o later?

thanks to all for such great comments always.


  • TheShortSalePro30th April, 2003

    There is no reason why you couldn't 'short' with a construction loan in place provided that the mortgagee's short sale criteria is satisfied. Generally, a construction loan carries a low LTV, and the mortgagee has little exposure to loss.

    If the construction was halted due to poor design engineering, substandard materials, &/or poor workmanship, you would have an easier time getting a short approved.

    Is this an FHA 203K loan?

  • sewa30th April, 2003

    short sale pro,
    thanks for your response.
    i am not sure if it is an fha203K loan or not. i am thinking not. how would that matter? is it because i could only short sale by the fha designated amount?

    i think the h/o just ran out of money and could not finish the project. they've not paid on their loan for a long time. the bank is really small and local so not sure how this will affect the s/s. any thoughts?

    thanks again.

  • SharonRestrepo1st May, 2003

    Sewa- sounds like a question you asked on the phone Monday, but yes a construction loan can be short saled and no, info cannot be used against him later unless he shows other lienable assets are currently owned by him. The info that we want the bank to see shows his hardships not his assets. Good luck, Sharon

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