Payouts! Owner/Borrower Wants Out!

[Marvin S.]

I have come across a lot of opportunities where a home owner wants out of their original fixed  loans/mortgages for various reasons. Thing is all I have come across are current on all payments. 

After looking at the sites and casually talking to several lenders, the "being current" on payments disqualifies the borrower from any of their distressed relief programs.

We have an offer in front of a seller that is less than his stated payoff. To make a long story short, the offer is one that is close to what the lender would profit over the 30 yr fixed term, considering the original down payment and the years of payments already made.

The seller is concerned that his credit score etc., would be affected if he sold with bank approval at a lesser amount than the payoff amount.

Has anyone seen this scenario before, and if so what were the results?

Of main concern is ensuring that the homeowner/borrower is protected and faces no future liabilities after the sale.

[Wayne Brooks]

What you're talking about is a short sale.  And yes, the seller will take some of a credit hit.  But forget about trying to calculate "what the bank would have made....", that's all irrelevant.  A short sale has a certain prices required, including it being listed with an agent.  Almost all short sales forgive the remaining balance, but the owner needs to "qualify" for the short sale due to a financial hardship, not simply just being upside down on the mtg.