In early stages of Short sale process with Green Tree. Green Tree rep is asking whether to pursue short sale or Deed-in-lieu. She stated short sale only helps realtor. Researching but have nothing definitive. I welcome any suggestions. Thank you

Here is some background:

• Short sale paperwork submitted two weeks ago for one property, 2nd to follow shortly.
• Cash buyer is interested in both properties. Ready to purchase if Green Tree approves.
• Both condos located in West Palm Beach/Greenacres, FL area.
• Approximate market price is $50k-$60k each. Less than a third of the initial purchase price.
• No second mortgage
• HOA fees paid up to date
• Both are currently rented
• No payments made for October and November 2012

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Dom,

     Are you the borrower? I would research and see if either option will have cash incentive to participate. Many times deed-in-lieus are not an option for many borrowers.

[email protected]

www.ishortsalenow.com

310-564-6389

Hi Brett,

Appreciate the feedback. Yes I am Borrower. I don't know why the lender would pursue deed in lieu rather than short sale since there is a signed contract to sell the property. I wonder if a cash incentive is more common with a short sale than deed in lieu.

Don't know the logic behind Green Tree taking over HOA payments, taxes etc with deed in lieu instead of accepting a SS. I also read that some accept deed in lieu if the case for hardship is not strong.

It is unusual for a lender to prefer a deed in lieu to a short sale.  First, verify that you will receive a waiver of deficiency with the deed in lieu.  Secondly, try to find out any incentives to you for the deed in lieu vs the short sale.  With HAFA, and with some lenders on a non HAFA, any relocation incentive would go to the occupant of the property (renter), not the owner.  I'm a Realtor and while there is no commision to the real estate agent with a deed in lieu, I couldn't argue against a deed in lieu for an owner who will get the deficiency waiver.  I'd just have to say congatulations, and move on to the next one.

Also, check to see what current credit and future credit implications for purchasing may be vs. a Short Sale or another workout.

First of all, I will take the representative from Greentree name and ID number and officially start a complaint due to, she is denying the home owner the participation of the HAFA program which the US Government has put 28 Billions dollars to help home owner avoid foreclosure and at the same time get a loan deficiency waved.

How arrogant from this representative to give you that statement.

1.  Immediately request a new negotiator due to that fact. PERIOD 

2.  Get a new fresh start.

3.  Get your CMA ready, clean RE offer and a HUD-1 with minimum closing cost so the Investor (BANK) can net some what more...

Best of Success...the best is yet to come for you


Ivan Diaz Ikon Capital Group

Well 1st you are way early in this process with Green Tree (2 weeks) of offer submission. You do not have a negotiator. You likely are speaking to a rep just reading from a script who may not even know if you qualify for a deed in lieu).  You are going to be waiting a long time for DIL or short sale.  I don't know how long you had it on the market- but most lenders won't accept a deed in lieu unless you tried to market 3-6 months with no offer. Submission of a deed-in-lieu package is no guarantee it will be accepted (and yes, hardship counts).  Most lenders do not allow you to pursue a deed-in-lieu and short sale at same time.  Since you have the property under contract for a short sale (subject to short sale approval contingency)- I would expect you would be required to see that through to whether GT will accept short sale or not as you are contactually obligated to do so. Good luck.

Hi Dom,

Another thing to consider is the effect of a Deed-in-Lieu versus short sale. On your credit report a deed-in-lieu will show as a public record much like a foreclosure does.  A short sale will generally be shown as a "settled" in the trade line only as it is a full sales transaction settled for less than owed, not a public record. 

Recently I had a lender offer a client a Deed-In-Lieu in place of a short sale contract we had begun. I asked the lender how their deed offer benefited my client and they stated is doesn't. The lender just preferred to short sell or sell the house themselves with their own short sale agents in place. They wanted full control over the transaction. Nobody looking out for the borrower here.

Good luck!

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