Real Estate Short Sales

[Extreme Steam Detail]

I was not previously aware of what the banks are doing to approve a short sale. I have a property I want to purchase finally approved by the bank/seller for purchase. I am advised by my realtor that the the seller had to agree with the bank to carry to a promisary note equal to $32K divided over 72 payments in order for the short to be approved.

Is this this unusual or is it becoming the norm?

 

[Boatfloating]

I was not previously aware of what the banks are doing to approve a short sale. I have a property I want to purchase finally approved by the bank/seller for purchase. I am advised by my realtor that the the seller had to agree with the bank to carry to a promisary note equal to $32K divided over 72 payments in order for the short to be approved.

Is this this unusual or is it becoming the norm?

I haven't heard of this before but you never know.

 

[Chico&Zeus]

I was not previously aware of what the banks are doing to approve a short sale. I have a property I want to purchase finally approved by the bank/seller for purchase. I am advised by my realtor that the the seller had to agree with the bank to carry to a promisary note equal to $32K divided over 72 payments in order for the short to be approved.

Is this this unusual or is it becoming the norm?

A guy I work with is Short Selling his rental property, they are making him sign a promisary note for $25k and it's against his home that he is living in. He isn't happy about it.

 

[linus3]

Buddy went through the same thing........72k

 

[OCMerrill]

Neighbors accross the street are in the same situation right now. I think no less thena 1000 people have looked at the place.

So sense the banks can't 1099 is this a new loophole?

First I heard about this deal was only a week ago.

 

[Hava-Schiada]

Just closed on a short sale in Havasu last month. It took 9 months to close the deal. The seller was responsible for some of the money he owed on the house, over $200k. The worst part was after the seller accepted our offer, 8 months later, the bank steps in and counter offers $5k above the asking price :bash: So negotiations started again! Don't forget the banks are getting bailout money from the FED on the full original loan amount, not just what was owed and missed payments. The banks are still making a killing in these deals and they continue to drag their feet in closing the deals. VERY FRUSTRATING. Glad it's over now!:champagne::champagne:

 

[GhettoBird]

This is interesting

[video=youtube;ssl5yb7FewA]http://www.youtube.com/watch?v=ssl5yb7FewA[/video]

 

[TOBTEK]

A seller having to carry a P-note isn't uncommon these days. Worse is when your Realtor has to step up and pay thousands of dollars to one of the lenders because they will not accept the settlement offer. I just had one to the tune of 6k upfront before the close of escrow with no guarantee the deal would close...was risky. Deal closed, but we should have walked away, has been nothing but a PITA from that point forward.

 

[rivermobster]

I've tried to buy a few short sales, and it's nothing but a pain in the ass. Usually a total dog and pony show. I'm done looking at these things.

 

[Ivan Dan]

I've tried to buy a few short sales, and it's nothing but a pain in the ass. Usually a total dog and pony show. I'm done looking at these things.

I don't ever recommend getting involved with a short sale from a buyers standpoint. They are a complete emotional roller coaster and end bad as many times as they end good. Unless it is a CRAZY good deal and you don't mind waiting for 6-18 months with virtually no answer if your offer will be accepted. Yes I've seen some take as long as 18 months.

98% of SS are a royal PITA. :moon:

 

[Starloans]

I process short sales for realtors for a fee because they think it's worth it. I currently have over 20.

In a nutshell, most times a lender will only ask for money if there is money. It's all in the submission. If you submit financials for the seller that indicate there is recourse for lenders they will go after it.

I've only had one so far that ask for money and it wasn't the lender, it was the PMI company. They wanted 30K @ 0% interest for 180 months. The property was also a rental which is another strike. The seller told BOA to get fucked and walked after he had a discussion with an attorney that told him if it went to foreclosure there would be no deficency judgement or 1099. Not sure if that's true. I'd have to put on my internet attorney hat to find out. :rotflmao:

From the sounds of the cases above, it appears that probably the Realtor is the one processing the short sale with the help of escrow. This can be problematic since a lot, but not all Realtors are FUCKTARDS!!! The ones I work with are not because they hired me. :champagne:

Some of the thing that can affect the out come of a short sale are:

1. A good hardship letter. Not just "I can't pay for my house".
2. Don't send ALL bank statements, especially the one's with money in them.
3. If only 1 person is on the loan, don't include other people's income information like the spouse, brother, sister, etc., only the mortgagor.
4. Send EVERYTHING together, not the agent faxes stuff, escrow faxes stuff and seller faxes stuff. That's a train wreck.


I don't condone fraud or lying to the banks but I don't give them anything extra. They made BILLIONS during the boom and now they are hurting and the Gov't STILL gives them BILLIONS and they're still fucking over the homeowner. Fuck em.

Sorry if I offended any Realtors. I am one.

 

[rivermobster]

I don't ever recommend getting involved with a short sale from a buyers standpoint. They are a complete emotional roller coaster and end bad as many times as they end good. Unless it is a CRAZY good deal and you don't mind waiting for 6-18 months with virtually no answer if your offer will be accepted. Yes I've seen some take as long as 18 months.

98% of SS are a royal PITA. :moon:

There was one in Temecula I was Crazy about! FIVE acres up in the hills with a bitchin view of the city. Big garages, horse stables on it. Woulda been perfect for all of my toys. Offer was accepted, all was good, but the seller kept takin stuff off of the property!!! (mother focker didnt pay for it, how does he get off taking stuff off of it!) The last straw was when he turned off the power, so we couldnt get the well water tested, when we told him thats what we needed to do. I canceled the escrow that freakin day. And a year later the place is still for sale! Go figure. Its prolly striped bare by now.

 

[C-2]

I process short sales for realtors for a fee because they think it's worth it. I currently have over 20.

In a nutshell, most times a lender will only ask for money if there is money. It's all in the submission. If you submit financials for the seller that indicate there is recourse for lenders they will go after it.

I've only had one so far that ask for money and it wasn't the lender, it was the PMI company. They wanted 30K @ 0% interest for 180 months. The property was also a rental which is another strike. The seller told BOA to get fucked and walked after he had a discussion with an attorney that told him if it went to foreclosure there would be no deficency judgement or 1099. Not sure if that's true. I'd have to put on my internet attorney hat to find out. :rotflmao:

From the sounds of the cases above, it appears that probably the Realtor is the one processing the short sale with the help of escrow. This can be problematic since a lot, but not all Realtors are FUCKTARDS!!! The ones I work with are not because they hired me. :champagne:

Some of the thing that can affect the out come of a short sale are:

1. A good hardship letter. Not just "I can't pay for my house".
2. Don't send ALL bank statements, especially the one's with money in them.
3. If only 1 person is on the loan, don't include other people's income information like the spouse, brother, sister, etc., only the mortgagor.
4. Send EVERYTHING together, not the agent faxes stuff, escrow faxes stuff and seller faxes stuff. That's a train wreck.


I don't condone fraud or lying to the banks but I don't give them anything extra. They made BILLIONS during the boom and now they are hurting and the Gov't STILL gives them BILLIONS and they're still fucking over the homeowner. Fuck em.

Sorry if I offended any Realtors. I am one.

Great post about banks and the misconception they are somehow there to help the borrower. :thumbsup

Great advice on items 1-4. It's really no different than filing a tax return or even preparing for a BK. You give them required items, not necessarily what they ask for, and nothing else. Keep it simple Sam.

 

[locogringo]

The seller told BOA to get fucked and walked after he had a discussion with an attorney that told him if it went to foreclosure there would be no deficency judgement or 1099. Not sure if that's true. I'd have to put on my internet attorney hat to find out. :rotflmao:

As long as it was a purchase money loan, a lender can not pursue a deficiency judgment in CA whether it be a primary, rental, whether they original loan was $2MM discounted to $500k.... doesn't matter. By law, the homeowner will have to be 1099'd but again, as long as it is a primary residence, a single homeowner has a tax forgiveness of up to $1MM and a couple up to 2MM (I think, I can't remember)

Out of all the short sales we have closed on this year a few threatened to pursue the homeowner and have him sign a promissory note (on ones that weren't purchase money loans) but through negotiating, they all decided against it.

I personally LOVE short sales. No competition, I'm in no hurry to buy so I will stick it out while an end buyer won't, and I find that I can buy for A LOT less than REO's are selling for as well as what the stupid investors are bidding up properties to at the courthouse steps.

Just since the beginning of April until today, in Orange County, there have been 1159 NEW Notice of Defaults filed. I say there is more than enough to go around.

NoBama also is trying to pass some regulations on short sales and how the banks are supposed to comply with timeframes, etc, etc.