Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
I am in contract in a short sale with a seller who bought a house before he got married.
He is now deep underwater and wants to shortsale. He is still legally married but separated. He doesnt work, he is a veteran and his wife claims head of the househould.
I just spoke with his current wife/ ex wife and she is reluctant to give the bank their W2.
I recommended her to check with the short sale attorney if there will be any repercussion on her credit from providing that document. The bank just wants a proof that the guy doesnt have money.
Any tips and tricks to help this situation better or should I just walk away?
If the wife is not on title, not on the loan, and not living in the same household as the husband, she is irrelevant to the bank, as far as income. She's probably also irrelevant to executing title, unless the local community property type laws cause a title co. to require her signature regarding title. Are you trying to do this yourself, or do you have experienced short sale agents/negotiators involved? But, there wouldn't be any implications to her at all, if she's not on the loan.
Yes, joint return. I actually just talked to her again, explained that I had the title company verify if her name is not on the mortgage or title, and it isnt. Told her that she will be safe to provide the document.
She told me she just lost her job too, and I told them if they need help moving out I will pay for the moving company and help them with the security deposit for their rental...
Lets see if this motivates them.
She said she had income over the last year, and the bank might say they can afford the house....