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Permalink Reply by Eric Mieles on July 24, 2011 at 5:22am

Absolutely...."Every short sale takes on a life of it's own" couldnt have said it better. I would just add as Brian said the more you know the better you may be in preparing for what may come.

How many loans?

Do they have PMI?

Are they prepared (Sellers) if asked to contribute and/or sign a note?

Is there an HOA?

Are they delinquent on that?

Any other Jr liens you or they know about?

In finding ut the answers to these questions you may be better prepared to either follow through with the sale or take what you've learned and move on. Hope this helps. Good luck.

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Permalink Reply by Ann on July 24, 2011 at 11:25am

All we know is that BPO has been done, there is only one loan and it does have PMI.  We know home is worth less than half of what it was purchased for 5 years ago but are wondering if Fannie Mae accept that?  We expect some sort of counter it just seems like such a big loss so are concerned they will reject all together.  Both realtors feel our offer is well within FMV.  We do know that other homes have sold for much less then our offer but don't know if they were foreclosures or short sales or if they involved Fannie Mae at all. 

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Permalink Reply by Eric Mieles on July 24, 2011 at 11:52am

Ann,

Since the BPO has already been done that means an statement of value has been delivered to the investor in order to determine based on offer analysis if they will accept the net that this deal will provide.

Regarding what they bought for 5 years ago is normal. A short sale happens when a home is worth less than what is owed to the bank. Every short sale you see being done is the result of a bank, investor agreeing to be "SHORTED" a certain amount in order to quick sale the non performing debt they have and gain some liquidity.

So when wondering if they will write off the amount your thinking about I have a deal right now where Chase and the investor has approved a deal where they are writing off $600,000 +.

There is no guarantee the short will be approved however you mentioned you wrote a FMV offer and you have been on top of things and thats all you can do now. The rest is up to the listing agent supplying the necessary docs in a timely manner, following up reguarly, negotiating and fighting hard to get the deal approved.

Also you have the PMI company, who ultimately will determine if they wish to not have the homeowner sign a prom note or ask for cash contribution. Please keep us updated and good luck.

Also continue to ask for regular updates weekly!!

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Permalink Reply by Ann on July 28, 2011 at 1:00pm

Well its not looking good we got a counter from bank/investor for $38K more than offer.  Everyone was shocked and we are very disappointed because it is so far off FMV.  We have countered back $12K more than our previous offer and thats the most we can do.  Realtors are doing everything possible to convince them to bring it down with comparables and it needing work as well as a refridge and washer/dryer.  Home has been for sale for about a year and a half and other contracts never made it this far before now.  Sellers have moved most everything out and we hope if it doesn't go through with us they just walk away because we don't think bank/investor will get close to our offer with foreclosure or auction.  Such as big difference not sure if there is really any hope left for us.

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