Replies to This Discussion

Permalink Reply by Tara Samney on May 8, 2013 at 3:52pm

Fannie Mae is the investor.  GreenTree is the servicer (who seller makes payments to).  If seller isn't even behind you are wasting your time at this point- unless there is an expected imminent default by the seller which doesn't seem the case since Fannie kicked it back.  Even if he missed one now you are looking at 30 days min. 

Honestly, it sounds like the problem is your agent is representing both you and seller or just inexperienced. 

What you could have is a seller trying to do a strategic default where he/she is underwater and wants out of the property even though they can afford the payments.  Fannie takes a good hard look at financials.  In which case you would really be wasting your time b/c it likely won't foreclose.  You also must remember your agent represents the seller and can not divulge confidential information to you of seller's strategy or financials.

I highly suggest if you look at another short sale you find a buyer's agent experienced in them (and don't rely on the seller's agent to represent you both).  It won't cost you anything (the lender picks up the cost) and the agent can weed out time wasters before even making an offer.

Permalink Reply by mike romone on May 8, 2013 at 4:18pm

I think your right.Some things dont make sense though. He vacated the house a year ago. He also seems motivated.

Permalink Reply by Tara Samney on May 8, 2013 at 5:24pm

I reread your earlier posts and a lot doesn't make sense:

1) How did the agent not understand GreenTree was first?

2) How did the agent get Ocwen approval unless the seller was behind on that mortgage?

3) The file gets reviewed first by GreenTree to be sure everything is together and min criteria are met and later goes to Fannie Mae. 

4) You don't really know he vacated a year ago if you are just relying on what the agent says or thinks.  Sellers lie, you never know.  Seller may have had a tenant that vacated later. Many sellers are adamant they don't want to hurt their credit unless they think they will get approval and will make payments.  Strange it would be made to the first and not the 2nd though.

As your agent (who is also the seller's agent) is trying to get you to move on though is a very very bad sign.  She likely knows something you don't and may not be allowed to disclose. She may know this sale doesn't have a chance of closing anytime soon and I would pay attention to that concern.

I was hoping you would have a better outcome! If this is the house you absolutely must have then by all means tell the agent you can wait so many months more and see if the seller can prove a stronger hardship case and/or miss a payment. It all comes down to what your tolerance level is.

 

Permalink Reply by mike romone on May 20, 2013 at 8:23am

Just a update. Still no approval and I submitted this offer back on 2/28 its now 5/20. So almost 90 days and no approval. Im sticking with this though. I am kinda upset as I was assured this whole process would take 60 days or less. I know my realtors trying. They have now sent I think 4 huds in. This has been a long process and I dont think the new laws have made things work faster in my case.

Permalink Reply by Tara Samney on May 20, 2013 at 11:24am

Some short sales are just harder than others. Often agents expect they will take 60 days or less but they can not control the timeline of the 3rd party.   If there is no other property you want- then sometimes you just need to wait. It sounds like a brutal one, BUT that doesn't mean it won't work out.

Keep us posted and Good Luck!!

Permalink Reply by mike romone on May 21, 2013 at 1:19pm

Yeah I did learn today that it has not been approved for a short sale yet and that my realtor did submit the packet to both lenders on the same day. They got mixed up on who was junior and who was first. They both got sold 3 months into the short sale process. Both lenders had approved a short sale then sold them. Ocwen approved it in 2 weeks! But they are the 2nd. Green tree has played games for 82 days now simply rejecting the packet for whatever reason hence the 4 huds. 82 days and from what I understand its never made it to fannie for review because Green Tree has rejected the packed 4 times. Gree Tree is making this though they told us that the BPO was $59900 So I offered $62000 and thats where we are and its 82 days now.

Permalink Reply by mike romone on May 21, 2013 at 3:04pm

I would not know what to say if I got good news..

Permalink Reply by mike romone on May 23, 2013 at 3:09pm

Finally got a decision today. They rejected this the short sale after 85 days this is this the exact email I got. Im giving up and going on. My realtor is not savy enough to get around this. Honestly not many would be.

"I just received confirmation from Greentree.  They are accepting the purchase as long as we meet all their requirements.  The bad thing is I just spoke to OCWEN, the 2nd lender.  They are not happy and said they will not release their lien so therefore the deal will fall through.  I just called and left a message with Greentree to inform them of the situation.  I just cannot believe they are not willing to work this out.  I hope she calls me back today or tomorrow.  I will not give up until she tells me they will absolutely not negotiate.  There has to be a solution.  I will keep you informed."

THE END

Permalink Reply by Tara Samney on May 23, 2013 at 3:34pm

Mike- You had written you had Ocwen approval in only 2 weeks?  I'm confused.  As you never had an approval letter was that just the negotiator saying it was likely?

Did GreenTree give you a letter?  What does Ocwen want to release their lien?  What is GT offering?  6% of the Ocwen loan?

If no one has given you a letter, there are no approvals. 

Permalink Reply by mike romone on May 23, 2013 at 3:51pm

Yeah they submitted Ocwen $59900 thinking they were the first. Of course they approved lol I think Green tree is offering them $1200 and they want $6000. I know Fannie will not allow anyone to contribute to the second. I think Fannie wants this property for homepath. Thats why they are not offering Ocwen anything. They want it to foreclose.

Permalink Reply by Tara Samney on May 23, 2013 at 4:02pm

How much is owed for Ocwen?  If somehow the seller has given you authorization to speak with the lenders, I guess you could get this from Ocwen if agent won't tell you.  I'm guessing it is a $20,000 loan and Fannie is paying 6% = $1200.  If so 30% is nuts.  Changes with Freddie/Fannie from a few months ago make it even harder.  The 2nd has to release the deficiency, not just the lien, for the short sale to go through. 

I don't think you are allowed now to show buyer contributions on the HUD  with the new changes to make up the shortage.   

I've had more experience with GT than Ocwen...once you speak with GT you may want to repost over at the Ocwen help to get some advice...now that you have numbers.  Get the amount of the approx loan balance though.

 

Permalink Reply by Tara Samney on May 23, 2013 at 4:05pm

Fannie's guidelines are to only offer 6%. You need to verify what the loan amount is, if that is what the case is.  If they are offering the full 6% your agent needs to work on Ocwen to get them to come down.

(yes, you are right- no one can make contributions for the closing)

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