My buyer likes to think outside of the box. He's in escrow on a short sale and asked me if it's possible to go directly to the investor and ask investor to hold paper on the property. Rather than pass judgment on my buyer, I'd rather run it by this forum. Has it ever happened? Thanks for your insights.
NO. Your buyer has to close "clear escrow" within the strict terms of that written short sale approval.
The Sellers investor is not going to loan money to the buyers of their borrowers short sales. However other lenders may and that loan application should have occurred long before the transaction was "in-escrow".
What?...No, the Investor wants out. Why would he want to switch lenders? If he is not happy with the terms of his loan he should have brought that up way before this. This is more than thinking outside the box.
Was this buyer not pre-approved? All my buyers short sale or otherwise submit a pre-approval letter from a specific bank and with the terms, length of loan etc or proof of liquid funds. We did switch from a FHA loan to a conventional on one purchase because of some conditional issues. All the lender information, lender contact etc is requested on the short sales that I list.
You are being too kind!
I think there are too many unasnwered questions in this for anyone to pass judgment. What is his purpose? All responses have defaulted to him not qualifying, but it sounds to me like he might be thinking he can save some money by staying with the same investor. I've never seen it done and don't think it's something that the short sale negotiators and team are sophisticated enough to work through. To get to the investor, you would have to go through the negotiator team, and that would be problematic. I too, am always looking for ways to pioneer through the broken systems we have. This could save time and money for everyone. Not a bad idea in it's raw form, but I don't see it happening because all of those who would make it happen are bolted to the floor of the box ... no chance they're getting out of it any time soon.
Loved your last line Marti. Good chuckle for a Sunday morning. I totally agree by the way.
The buyer is likely thinking that he could just take over the loan that is being shorted. If the lender was in a position to do that don't you think that notion would be made public for all buyers to inquire about? The lender the seller is doing the short with likely does not engage in new loans as they are just servicers and the lender probably has other investors to satisfy like MIP, FHA, Fannie, Freddie, etc. The buyer needs to get going with a new loan from the local lender who is an originator.
Thank you, everyone. I have my answer. Especially enjoyed Wayne Brooks' "but sometimes 'outside the box' is the same as "not in touch with realitly'". Best of luck to all you in your short sale endeavors. This forum is a life-saver!
No, no, NO! As with REOs, investors and lien holders are getting more and more strict about prequalifications and contract changes. Tell your buyers to submit offers using the financing terms and name they intend to close with. Investors and lien holders are allowing NO changes once the contract is accepted. Changes will void the contract and cause you to start all over! You also need to know exactly what proof of funds needs to accompany their prequalification letter, especially if they are an LLC or a CORP. This is a do-it-right-the-first-time situation. You need to ask your clients the questions about buyer name and financing, let them know that there can be no changes once the contract is accepted, and then confirm the info before the offer is submitted for approval.
The PartnerFirst Investor-Direct Short Sale Initiative does exactly that. But only with specific investors.