I am looking at doing a short sale on my current condo. I lost my job and can not afford my payments. I have money from a student loan, about $7,000 so that I can pay for Fall semester, will the bank try to take that money? If so, is there anything I can do to keep them from getting it cause I do need it to pay for school.
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No, they can’t take that money by force. However, they can deny the short sale. The only way they will know about your savings account is by your tax returns (if it is there) and if you used it when you applied for a loan. They also will know about anything that will show up on a credit report.
If the bank will know about it, what I suggest is to take the money out and put it in a safe deposit box or safe or your parent’s account.That way they won’t deny the short sale. Or maybe close the account and open up a new one.
One last note, if you are in a judicial foreclosure state, have the short sale negotiator waive the deficiency judgement. If you foreclose or do a short sale without waiving the right to a deficiency judgement, then the lender can go to court and get a judgement against you for the difference.With that judgement, they can garnish wages (if your state allows it), hit your accounts (that they know about), etc.
They will not approve the short sale as you have funds to repay them.
You are basically asking if you can keep your funds AND the money they gave you, the answer is no. You can not screw them and keep money.
They are going to take that money. Why don’t you see if you can pay it toward you school NOW rather than waiting, I am sure the school would gladly take an early payment.