All Discussions Tagged 'home' - Short Sale Superstars2024-03-29T06:38:31Zhttps://shortsalesuperstars.com/forum/topic/listForTag?tag=home&feed=yes&xn_auth=noBuying Short Sale: Negotiations after home inspectiontag:shortsalesuperstars.com,2014-04-05:3468065:Topic:3472742014-04-05T23:43:08.955ZRudyhttps://shortsalesuperstars.com/profile/Rudy
<p>Since posting two months ago, our buying process of the short sale property is slowing moving forward. It is in Broward County, FL, next to Miami-Dade county. There is only one lien on the house, not multiple ones as is common in short sales. We were told the bank has suspended any potential foreclosure proceedings in the house and the owners are moving out at the end of April. I was asked this past week to provide proof I had the down payment, and I had to respond the next day. I was…</p>
<p>Since posting two months ago, our buying process of the short sale property is slowing moving forward. It is in Broward County, FL, next to Miami-Dade county. There is only one lien on the house, not multiple ones as is common in short sales. We were told the bank has suspended any potential foreclosure proceedings in the house and the owners are moving out at the end of April. I was asked this past week to provide proof I had the down payment, and I had to respond the next day. I was uncomfortable because that bank account has more than the down payment, and I didn't want them to know. Any thoughts? I gave it. I've been told now it is going to processing, and that this processing is outsourced offshore.</p>
<p>Since my relocation plan pays for the home inspection, and more if needed, and because the home inspector will do other houses for half price, I went ahead and did the home inspection. A great roof, but a few problems with the pumps on the pool, some smoke detectors, a few electrical GCFI issues, and they noted that the dishwasher and the A/C are old. My contract says I have 15 days after the effective date to cancel based on the home inspection. We do like the house a lot, but are concerned about these issues.</p>
<p>Can I negotiate for a lower price (thinking about $4,000) based on the home inspection, and if so, at what point? Also, given that it has been 2 months, and it is now processing, what is the chance the bank will ask for more money? I'm nervous about that since my bank statement showed more than the down payment in my bank account. We had made an offer at their full list price. The house had been on the market for close to two months at a higher price. Our offer was about a week after they lowered the price. As far as we know, there were no other offers. There are three other houses with the same model, same neighorbood for sale for about $40k more, and been sitting on the market for awhile. There's another unapproved short sale of that model asking $20k lower that has an old roof (based on what the owner told us).</p>
<p>My agent does not have a lot of experience with short sales, but she talks to someone else in her office who does. The seller's agent has a lot of experience with short sales and said she is very confident the bank will accept the price (and she also knows the seller's financial situation).</p>
<p></p> Should Homeowners Short Sale Now Or Wait?tag:shortsalesuperstars.com,2013-02-25:3468065:Topic:2981542013-02-25T16:28:38.159ZPeter J Kimhttps://shortsalesuperstars.com/profile/PeterJKim
<p>Hi guys,</p>
<p>What do you tell homeowners when they are wondering whether to short sell their homes now or wait until it breaks even? I have my own personal opinion on this: <a href="http://www.seattleshortsaleblog.com" target="_blank">www.seattleshortsaleblog.com</a></p>
<p>Because we are seeing a spike in appreciation rate which I believe will not last, homeowners are now reconsidering their short sale and thinking of waiting to break even so they can save their credit.</p>
<p>Thoughts,…</p>
<p>Hi guys,</p>
<p>What do you tell homeowners when they are wondering whether to short sell their homes now or wait until it breaks even? I have my own personal opinion on this: <a href="http://www.seattleshortsaleblog.com" target="_blank">www.seattleshortsaleblog.com</a></p>
<p>Because we are seeing a spike in appreciation rate which I believe will not last, homeowners are now reconsidering their short sale and thinking of waiting to break even so they can save their credit.</p>
<p>Thoughts, opinions, concerns?</p>
<p></p>
<p>Thanks!</p> USDA Rental Propertytag:shortsalesuperstars.com,2012-07-29:3468065:Topic:2551342012-07-29T15:02:14.340ZSarah Littlehttps://shortsalesuperstars.com/profile/SarahLittle
Has anyone ever had USDA say that they cant do a short sale since the home had been a rental property in the past? Is there a way around this?
Has anyone ever had USDA say that they cant do a short sale since the home had been a rental property in the past? Is there a way around this? Bank Appraisal is too HIGH!tag:shortsalesuperstars.com,2012-04-13:3468065:Topic:2259702012-04-13T15:26:03.890ZTom Braunagelhttps://shortsalesuperstars.com/profile/TomBraunagel
<p>I have an issue with a high bank appraisal. Home will never sell at the bank's perceived value</p>
<p>Home is a short sale, HUD is the investor(PNC is the bank).<br></br>Bank Appraisal #1 came in high, we requested another. Bank Appraisal #2 also came in high($10k less than first). We continued to market home at price that would meet banks required net-NO OFFERS. While we were marketing home, winterization came in and caused damage to house-bank refusesdto decrease value of home based on the…</p>
<p>I have an issue with a high bank appraisal. Home will never sell at the bank's perceived value</p>
<p>Home is a short sale, HUD is the investor(PNC is the bank).<br/>Bank Appraisal #1 came in high, we requested another. Bank Appraisal #2 also came in high($10k less than first). We continued to market home at price that would meet banks required net-NO OFFERS. While we were marketing home, winterization came in and caused damage to house-bank refusesdto decrease value of home based on the change of condition.<br/>We reduced the price below the required net and received an offer.<br/>We approached the bank and they are not willing to consider offer because it is below the required net.<br/>Any suggestions?</p> Short Sale with 21st. Mortgage Corp,,,,,HELP!!!!tag:shortsalesuperstars.com,2012-01-25:3468065:Topic:2074492012-01-25T18:52:41.494ZRaymond Hensonhttps://shortsalesuperstars.com/profile/RaymondHenson
<p>I have a mobile home listing that I took over for a friend. We have had it on the market for about a year at the price the lender set as their lowest price they would accept in a short sale. Originally, the lender, 21st Mortgage, stated that we could sell the property and my client could pay back the difference between the sales price and the loan amount. California recently passed a law that said a lender cannot require repayment as a condition of a short sale. 21st Mortgage has changed…</p>
<p>I have a mobile home listing that I took over for a friend. We have had it on the market for about a year at the price the lender set as their lowest price they would accept in a short sale. Originally, the lender, 21st Mortgage, stated that we could sell the property and my client could pay back the difference between the sales price and the loan amount. California recently passed a law that said a lender cannot require repayment as a condition of a short sale. 21st Mortgage has changed their policy. They say they will no longer do short sales in California, period.</p>
<p> There recommendation is to raise the price substantially and market the loan as assumable. They want me to sell a mobile home over price and have a borrower assume a loan at a higher interest rate and longer duration than he can get on his own in today's market. Hmmm, not one phone call in all this time and they want me to raise the price.</p>
<p> Has anyone ever dealt with this company before and have any advice or options? Does anyone have any advice for short sales with regards to mobile homes in general? I mean, besides the obvious, "run away!" :o)</p>
<p>It seems hard to believe there are so few options for mobile home owners that need help.</p>
<p> Thank you, Ray</p> Anyone heard of a successful HARP modification?tag:shortsalesuperstars.com,2011-09-26:3468065:Topic:1761222011-09-26T22:52:54.677ZLiane Jamasonhttps://shortsalesuperstars.com/profile/LianeJamason
I wasn't really aware of what it was but apparently its for people like myself who bought in 2005, got an ARM (dumb!) at a high interest rate but are current on payments - they allow you to refinance even if you are "upside down". Apparently Quicken loans is writing them. I'll be calling them tomorrow and let you know what they say.
I wasn't really aware of what it was but apparently its for people like myself who bought in 2005, got an ARM (dumb!) at a high interest rate but are current on payments - they allow you to refinance even if you are "upside down". Apparently Quicken loans is writing them. I'll be calling them tomorrow and let you know what they say. MHA Servicer Results!!tag:shortsalesuperstars.com,2011-09-07:3468065:Topic:1662042011-09-07T01:22:55.591ZEric Mieleshttps://shortsalesuperstars.com/profile/EricMieles
What's everyones thoughts on the recent MHA Servicer results through July 2011??
What's everyones thoughts on the recent MHA Servicer results through July 2011?? Short sale on a second home with PMItag:shortsalesuperstars.com,2010-12-16:3468065:Topic:634572010-12-16T00:16:15.437ZDiane Rogershttps://shortsalesuperstars.com/profile/DianeRogers
<p style="text-align: center;"><span style="font-size: large; color: #0000ff;"><strong>Second Home & PMI...</strong></span></p>
<p> </p>
<p>I have a short sale in Equator and GMAC is the lender. It is a second home and has PMI. My negotiator said he has to request the seller come to the closing table with $2,000 and that the PMI company may ask for much more than that and ask them to sign a promissory note. Can anyone shed some light on this? Thanks.</p>
<p style="text-align: center;"><span style="font-size: large; color: #0000ff;"><strong>Second Home & PMI...</strong></span></p>
<p> </p>
<p>I have a short sale in Equator and GMAC is the lender. It is a second home and has PMI. My negotiator said he has to request the seller come to the closing table with $2,000 and that the PMI company may ask for much more than that and ask them to sign a promissory note. Can anyone shed some light on this? Thanks.</p> The Arizona Short Sale Addendum to the purchase contract must be changedtag:shortsalesuperstars.com,2010-09-26:3468065:Topic:500792010-09-26T08:53:06.882ZMike Hortonhttps://shortsalesuperstars.com/profile/MikeHorton543
<p class="MsoNormal" style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">In Arizona our state association (Arizona Association of Realtors; AAR) has strived to generate standard contract forms that provide consistency to business of buying and selling real estate. When the short sale of property became a…</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">In Arizona our state association (Arizona Association of Realtors; AAR) has strived to generate standard contract forms that provide consistency to business of buying and selling real estate. When the short sale of property became a significant factor in real estate sales the Short Sale Addendum to the real estate purchase contract became a part of the tools agents needed in a transaction. What was once a significant help in protecting buyers in a short sale transaction, has become liability in the process promoting buyers and buyer’s agents to write many contracts that were never destined to be executed. In fact this form has:</font></span></p>
<ul type="disc">
<li style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1; tab-stops: list .5in" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">increased the number of foreclosures we are experiencing in Arizona</font></span></li>
<li style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1; tab-stops: list .5in" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">provide an unfair advantage to the buyer</font></span></li>
<li style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1; tab-stops: list .5in" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">increased poorly written contracts that don't provide adequate protection to the buyer or seller in a short sale transaction</font></span></li>
<li style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1; tab-stops: list .5in" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">significantly increase the liability of agents in a transaction</font></span></li>
</ul>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000"> It is time we change the short sale addendum to address the changes in the market. It is time the short sale addendum provide fairness to both buyer and seller. It is time that the short sale addendum be modified to decrease the liability that faces an agent.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">Owners with homes that are in the short sale process are often forced to stop payments in order to have the servicing agent (i.e. the bank) begin the short sale process. Both Fannie Mae and Freddie Mac backed loans require the owner of the home to be in default or in eminent threat of default before they allow the bank to begin evaluating the owner for the short sale process. This creates a time line that for the owner to successfully have a short sale transaction negotiated before the trustee sale. Most banks (ie. at the direction of the investor who holds the mortgage lien) will initiate foreclosure proceedings at the time the lien is 90 day late and set a trustee sale date about 30 days later. While agents can occasionally get a short sale transaction to process in less time than the foreclosure process, that is not typical. Even though I hear about sellers and agents who got approval in 10 days or 30 days, the realty is many short sales never close due to foreclosure. Why is that? When a buyer puts an offer on a home that will be in the short sale process, line 41 of the Short Sale Addendum allows the buyer to cancel ANYTIME prior to receiving the Agreement Notice from the Seller. This is a non-binding offer. Buyers will write offers on multiple homes and take the first one that comes through. More frequently than not, the offers that the buyer is no longer interested in are no longer addressed by the buyer’s agent. The seller mean while has been diligently working to get the short sale agreement notice from the lender. If offer is no longer viable and the seller’s agent finds this out, then that agent should inform the bank that the offer is no longer good and that they are seeking a new offer. This creates a situation where is they are in the foreclosure process and the trustee sale is coming up, the only way the bank will stop the trustee sale in most all cases is with a new offer ( and sometimes the bank will only allow a certain number of extensions or no extensions). If the offer is not canceled by the buyer’s agent (which does happen but not all the time) then the seller may not have enough time to get a new offer and the home can slide into foreclosure. Anyone who is involved with short sales on a regular basis has had this experience. There are more scenarios we could discuss that create conditions for trustee sale (the result of the foreclosure process) but my example above illustrates probably the experience most sellers have when the home is lost.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">In today’s market the Short Sale Addendum is unfair to the buyer. Buyers can cancel at any time without any sort of commitment. Sellers have to put their property into the foreclosure process to get the short sale process started in the vast majority of short sales. The only defense the seller has when faced with a non-binding offer is to consider replacing the offer with a new buyer that is willing to commit at least staying through the negotiation phase. And by commitment, I mean opening escrow with a modest earnest deposit of say $1000 on a property that is not available for refund until the agreement letter or a mutually agreed time is written into the offer. I won't go into the specifics, except to say that the real estate transaction has always been based on a commitment by two parties to complete a transaction. In the short sale process as we know it today that commitment is not existent. Before I get to far afield of this specific point, I have often had pointed out that lines 13 - 15 provide the protection needed by the seller. This is a red herring.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">First and foremost, banks are looking for the net that meets the requirements the investors have set for them. They don't evaluate contracts as to their quality or enforceability, just their bottom line. When a 2nd offer comes in, an assuming the first is non-binding, the seller’s agent has to help the seller decide what is best to do in the situation. If the bank is in document collection, accepting and presenting a new offer to the bank may be the best to do for the seller. But even if the 2nd offer is better, the seller’s agent must consider where they are in the process. When the financial evaluation is going on, a new offer may create confusion with the bank. Resets of the process are not unusual causing weeks of delay even under the best of circumstances. We all know that the quantity of homes under consideration by each negotiator is usually enormous. These weeks of delay can cause the buyer to lose heart (it’s a lot easier when there is nothing to lose) and drift away from the offer to another. If the offer has been presented by the bank to the investor, this could cause a significant glitch in the process with many weeks delay as the banks offer to the investor must be reworked. During this time unintended consequences can go rampant; BPOs that are no longer usable because they are older than 90 days; the investor may not allow any more extensions to the trustee sale date and the home goes into foreclosure; paperwork is lost; the file is passed to another negotiator based on the phase of the negotiation and then must go back in the process. More delays and more delays. Murphy's Law works overtime in this process.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">What about contracts and how they are frequently modified to protect the seller or provide more protection to the buyer. Article 26 provides agents in Arizona with the right to write and modify real estate contracts. These are legal contracts and all of the ramifications of writing a legal contract apply. Typically we are concerned about saying to much outside our discipline of real estate, like advising someone on bankruptcy. But what happens when you do not adequately explain a paragraph and the implications when written by another agent in your discussions with your client? What happens when you accept a clause in the contact such as eliminating lines 13-15 of the short sale addendum when written in a non-binding offer and the buyer fails to perform and the seller goes into foreclosure? What happens when you write something in the short sale terms and conditions that the deal to fail or maybe your buyer's earnest money is tied up for a long period of time after you have canceled your offer? You might say, well just give to the seller and let them make the decision and recommend they go to legal counsel specializing in real estate. What I am hearing is that is insufficient to protect the agent. The error of omission can be as bad as the error of giving advice outside of your expertise. Agent’s liability is increase and sellers and buyers have protection that is maybe inadequate for the process.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">In the short sale process, buyers have all the advantages with the standard short sale addendum focusing on providing them with the ability to cancel at anytime. Sellers can only be protected by performing significant surgery on the short sale addendum. An even then, when the agreement letter is presented and technically the offer become an executable contract, buyers often demure. They have bought another home or maybe they have buyer’s remorse and just don't like the home. Many will never even open escrow. When that happens the seller no recourse except to obtain another offer at the last minute if possible or try and force the buyer to open escrow and go through the motions which is really a waste of time.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">My goal of this blog is not to discuss if distressed sellers are deserving of protection. It is not to say we should have or not a short sale transaction. it is to say that the process has to be changed such that we real estate transactions that are as close as possible to what I will call a straight sale where we have committed buyers and sellers, where buyers and sellers are on equal contract terms and where the real estate contract has meaning and the protection it provides to both parties is what we intended it to be.</font></span></p>
<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 10pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto" class="MsoNormal"><span style="FONT-FAMILY: 'Arial','sans-serif'; FONT-SIZE: 10pt; mso-fareast-font-family: 'Times New Roman'"><font color="#000000">In a future blog I will recommend changes to the short sale addendum.</font></span></p> Primary Financial Services, LLC....has anyone closed or worked a deal with them?tag:shortsalesuperstars.com,2010-07-27:3468065:Topic:403902010-07-27T22:33:14.659ZRyan Smithhttps://shortsalesuperstars.com/profile/RyanSmith
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0.4em; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.5em; font-size: 1.2em;"><span class="Apple-style-span" style="color: rgb(51, 51, 51); font-family: Arial, 'Helvetica Neue', Helvetica, sans-serif; line-height: 19px;">Has anyone worked or closed a short sale with Primary Financial Services, LLC based in Phoenix AZ? They are the collection company Wells Fargo Home…</span></p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0.4em; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.5em; font-size: 1.2em;"><span class="Apple-style-span" style="color: rgb(51, 51, 51); font-family: Arial, 'Helvetica Neue', Helvetica, sans-serif; line-height: 19px;">Has anyone worked or closed a short sale with Primary Financial Services, LLC based in Phoenix AZ? They are the collection company Wells Fargo Home Equity sells off to. I'm working a file where Wells is the 1st and PFS is the 2nd. Wells has agreed to pay 10% or $8K to PFS, but PFS wants 20% or $16K. I'm looking for a good contact to escalate to or for any ideas you may have. This is a CA purchase money deal so there is no recourse against the seller. PFS stands to lose a lot of money if this goes to foreclosure. Your comments are appreciated.</span></p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0.4em; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.5em; font-size: 1.2em;"></p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0.4em; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.5em; font-size: 1.2em;"><span class="Apple-style-span" style="color: rgb(51, 51, 51); font-family: Arial, 'Helvetica Neue', Helvetica, sans-serif; line-height: 19px;">Thanks!</span></p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0.4em; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.5em; font-size: 1.2em;"></p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0.4em; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.5em; font-size: 1.2em;"><span class="Apple-style-span" style="color: rgb(51, 51, 51); font-family: Arial, 'Helvetica Neue', Helvetica, sans-serif; line-height: 19px;">Ryan Smith</span></p>