Forum

Short Sale Hell

Posted by Pam Mingo on December 29, 2012 at 11:58am in Short Sale Discussions

I have been trying to buy a short sale in Flordia for ten months now.  I have no more idea today where we are in this process than I did in March when I made the offer.  My agent is a nice guy but all he ever tells me is there is no new information or it is moving as expected.  The seller is also an agent and it appears she is handling more of the processes but I have no contact with her.  I cannot imagine how this has taken this long and appears that it will continue to drag out even more.  I believe there is a comapnay called Short Trac involved and her mortage is with Coldwell Banker, same place she works.  Am I crazy thinking this is ridiculous or is this just to be expected.  I probably am not supposed to be on this forum but I am desperate for some advise.  Should I hire an attorney or am I just stuck in this sort sale purgatory.

Thank you,

Pam Mingo Sain

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • Wayne Brooks January 6, 2013 at 8:38am
    Sale dates can be rescheduled either by the bank, or by filing a motion with the court. I just got a listing on 12-22 with a sale date of 01-07. Contract on 01-02, motion for extension of time on 01-04, granted a sale date extension til 04-03. But, owner had filled out/provided all paper work for Chase prior to receiving contract.
    Most counties in Fl have a relatively simple on line system for determining foreclosure status/sale dates, in south Florida anyway.
    • Bill Sloss > Wayne Brooks January 6, 2013 at 8:41am

      Why do you think that was done?

      • Wayne Brooks > Bill Sloss January 6, 2013 at 10:50am
        Oh, didn't clarify....we/the seller filed the motion to extend so as to have time to do the short sale.
        As far as how, PMI/loss works, where is Scribner when you need him? That's most of what I know about PMI losses...they take a loss whether it's a short sale or foreclosure. There are no set %'s for "acceptable losses". On some short sales the lender nets 15%, on others 80%. It's a case by case basis depending on the value of the house.
        • Bill Sloss > Wayne Brooks January 6, 2013 at 10:56am

          Thanks Wayne. In the short sale who has the final say the PMI or the lender? Are they PMI active or passive? Im just curious whos in command lol. Why would the lender pull a public sale do you think?

          • Wayne Brooks > Bill Sloss January 6, 2013 at 12:54pm

            The PMI company must approve whatever deal the investor/lender does, since they are taking a hit.

            A lender will cancel/delay a sale date to let a borrower do a short sale, do a loan mod, bankruptcy was filed, some issue with the validity of their judgement, and probably a few others.

            • Bill Sloss > Wayne Brooks January 6, 2013 at 1:10pm

              Thank you very much. From your response it appears you feel a short sale is more desired than a public sale to a lender. Do you think thats because of public sale histories, the market or public sales are less productive?

              • Wayne Brooks > Bill Sloss January 6, 2013 at 1:21pm

                It depends, generally the lender does NOT want the property back at the auction.  Some will bend over backwards to delay an auction.  Some on the other hand, will say "too late, too bad" if you're a week short of getting a short sale done.  You never know...one house I was tracking here was supposedly approved for a short sale  at 279K, on the market for 8 months, couple of contracts, no closing.  Went to foreclosure auction Monday and sold for $303k.  Go figure....

  • Wayne Brooks January 6, 2013 at 8:24am
    David, you're a little bit off on how PMI works/pays the bank. This is a common misconception. PMI only covers the first 20% (actually 20% less the cash down payment), NOT the entire loss taken by the investor. And, the liability to PMI issuer is the SAME in a short sale, as in a foreclosure. Banks don't "send property to the auction so the PMI will pay off, because PMI wouldn't have to pay with a sort sale". This is why a short sale with PMI is tougher because the PMI issuer has to agree, since it is paying out for a loss by the investor
    • Suzan Emerald > Wayne Brooks January 6, 2013 at 8:49am

      I'm sorry, but I still don't understand how PMI insurance affects a short sale. Wouldn't the PMI insurance pay the lender the 20% whether the lender forcloses or short sales?

      • Bryant Tutas > Suzan Emerald January 6, 2013 at 9:36am

        Yes they would. But you have to factor in the time value of money. They can pay out today or pay out way down the road after the property is foreclosed on.

This reply was deleted.
********************************** like buttons ************************