WABROKER

Archive for the ‘Short Sale’ Category

A short sale from the seller’s viewpoint is much like applying for a loan, only you fill out paperwork and show information that lets the bank know that you can not afford the payments. You need to gather income and expense information, provide pay-stubs and bank statements and explain why you can no longer make the payments as agreed.

Once you gather this information you must also submit an offer to purchase the property and a listing agreement showing that the property is being adequately marketed to attract offers. Some lenders take the information via fax while some have websites where you can upload them. The problem is if you have more than one loan you mus do the same thing for each lender and each lender may have a different way of doing short sales.

Provided you can learn all of this, and also have the time to devote to it, there is a need for you to be highly organized and patient. Read the rest of this entry »

A short sale is a sale that is going to be a foreclosure unless it sells soon. The seller can’t make the payments and will soon face foreclosure but instead tries to sell it  for less than what he owes.

Since there won’t be enough money from the sale to pay the loan and the late payment seller  must get permission from the lender to complete the sale.

This means the seller must fill out paperwork just like they are taking out a new loan only in this case they are trying to show the bank that they can’t pay the payments. This step of filling out papers and getting the lenders permission is what makes a short sale take longer than a normal escrow.

To make matters even more uncertain Read the rest of this entry »

Many ask if they can get another mortgage after a short sale.  The answer is yes, if you can qualify for it. The longer you wait after the short sale the more options you will have.

Generally you must wait two years from a short sale to get a good loan. A GOOD LOAN is defined as the best rates available to you if you had no short sale.

The time period is only applicable to the short sale. If you have other credit problems they can still keep you from getting a loan.

If you have insufficient income for the loan you apply for this will always be a problem whether or not you had a short sale.

So to give a short answer; Yes you can get a loan after a short sale by waiting two years, provided everything else is in your favor. The two years begins when the short sale is completed though so don’t start the timer until escrow closes on your short sale.

This is another good reason Read the rest of this entry »

In a short sale the short sale lender(s) have no legal right to dictate to you who buys the house. Yet they often  have put such restrictions in the approval or added such restrictions even to deeds.

Whether or not it is legal you must proceed against such language only at your peril.

The best way to approach such a transaction is with full disclosure to the lender and ask their permission in advance to see what their individual policy may say on the subject.

You must keep in mind that short sales are only governed and negotiated based on the individual banks own policy.

In other words if they prohibit a family member from buying it then the escrow company must comply with their written instruction whether or not they are legal. Remember escrow is a neutral third party and can only proceed with the full approval of all parties. Read the rest of this entry »

The short sale process differs from a regular sale in that once the buyer and seller agree to terms the short sale lender has to review the offer and decide whether or not it is acceptable to them.

Remember in a short sale the house is facing imminent foreclosure and the lender is checking to see whether or not it makes more sense for them to allow the short sale or to go ahead and foreclose with all the expenses to the lender that are involved in actually foreclosing and re-marketing the property.

Each lender has their own policy so the process differs from one lender to the next. Even the lenders that have a streamlined process will not be able to give you a quick answer in most cases. Read the rest of this entry »

If you are in a hurry don’t get into a short sale because they require patience and flexibility.  They do not happen as quickly as a normal sale with a buyer and a seller negotiating, agreeing then closing a deal.

The short sale homes require you to wait while the deal unfolds but they require no outlay of deposits or fees until they are approved. They take only time and patience until they are approved. If they are not approved then you just move on to the next one.

The sales prices of short sale homes turn out to be the best in the neighborhood in most cases. In a market where prices are not going up and in fact are expected to go down again it is to the buyer’s advantage to get a lower price. Read the rest of this entry »

Mortgage short sale is a term for a mini foreclosure. Short sales are simply foreclosures that get processed before the bank takes title. Seller sells to buyer without first giving title back to the bank. Its better for everyone than a long expensive foreclosure where seller has to move out and the house must be vacant.

Remember there is no such thing as a short sale under the law. Short sales exists only in individual lender policies and can and will vary from lender to lender. Sometimes the differences are slight but sometimes the differences are huge. The best way to  proceed is to get a guide that handles them regularly and that stays abreast of the various lenders’ policies and the constant changes that occur. Whatever you do do not attempt to do it yourself unless you have time on your hands, a penchant for self abuse and a big jar of Xanax.

Just following one from start to finish can takes 1-4 hours per day on any given day. Read the rest of this entry »

The short sale process is very simple.

Give the lender whatever they ask for. Do whatever they say and hope for the best.

Perhaps its time to reclassify short sale negotiators as short sale negotio-beggars.

Negotiating is too strong a term for what we do. Actually we provide things that are asked for and try to explain others mistakes like the BPO providers that give ludicrously high (or low) statements of value. Then we try and communicate to the sellers and buyers why the lender takes so long, asks for such odd requests and then forecloses and sells the property for $30,000 less than what the short sale offer was.

Here are the rules of a short sale in the current short sale process. Read the rest of this entry »

A short sale is just a foreclosure. It is the internal policy of the individual lender that is foreclosing which allows the seller of the home to sell direct to the new buyer without the bank first taking title.

No laws govern short sales. Under the law short sales do not even exist! It is only within the individual lender’s policy that short sales are permitted (or not!).

Many people mistakenly believe that there is some right to a short sale. There is not a right nor even a contractual process to a short sale. The lender may approve or deny them at their whim. Lenders are allowed to do whatever they wish even if it makes no sense, seems unfair or takes forever. They do not even have to give reasons for what they do nor inform you of what their polices are in regards to short sales.<!–more–>

So do not expect short sales (mini foreclosures) to go fast, to make sense or to be fair. This is why you need a guide in the form of a short sale negotiator that works for you. We do it and charge you nothing. We only get paid from the banks proceeds when and if the escrow closes. The seller will pay us nothing out of pocket.

Compared to a full foreclosure the banks save tens of thousands of dollars by processing short instead. With millions of foreclosures pending and tens of thousands of dollars to be saved on each one even a school child can see what banks see when they consider short sales instead of full foreclosures.

Millions times tens of thousands equals billions

Billions in saved fees so what do you think the banks will do “Short sales” or “full foreclosures”?.  Send in your answers to win valuable prizes.

Yeah just imagine finding out if an offer has been accepted in three weeks instead of three months. Remember when the seller had 3 days to answer or the deal was off?

and appraisers were good guys and got paid for their work… I just sent the above to an appraiser in response to an email that getting a short sale approved in 3weeks was amazing and wouldn’t it be nice if they all were like that.

How quickly we forget.

The CAR forms we use to write offers in California have a 3 day response time as part of the standard language in all offers and this meant the seller had 3 days to answer or the deal was off.
Just a short few months ago… ok just a few years ago.. deals were actually all done that way.

If you wanted to play rough Read the rest of this entry »