OK, here's the deal:
My wife and I decided it was time to buy our first home. Unfortunately, the only house we could both agree on is a SS. But since we're not in a huge hurry, we figured we might as well make an offer. Here are the details on the property:
Advertised at about $445k
Average value based on online appraisal tools: $450
Amount owed on 1st: about 370K (Wells Fargo)
Amount owned on 2nd: about 70k (HSBC)
We offered 400k and the seller accepted.
A few days after the offer went to the bank, Wells asked us to sign a 60 day closing addendum. That's about it so far. The seller is using a loss mitigator who seems to be very competent.
So, what do you guys think the odds are of us getting this house? I know you don't have any crystal balls, but I'd like to hear some professional guesses.
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UPDATE:
The LM guy says that we should get an answer from WF (1st position) sometime next week. HSBC (2nd) ordered a BPO and is waiting for the appraisal to come in. He expects that they will have that early next week. So it appears that things are moving along nicely. It's been just shy of one month so far.
QUESTION:
Is it common for the second lien holder to order a BPO?
Little more info...
OK, so this is all according to the LM guy: The seller is current, and my offer will likely cover the entire WF lien. However, it is very close. He said that there would just be a few k leftover, and if any fees pop up in the interim, we will be in short sale territory. So they're proceeding with this as a short sale under that assumption. Now I'm not sure how common this is, but I'm willing to trust the negotiator's experience and instincts. After all, he doesn't get a dime if we don't close.
Is there anything else I should be asking?
With the limited info. provided it does appear as if there is a chance.
They are easy to work with so long as you offer more than the usual $3k.
Although they will request the payoff statement on the first to verify that
there isn't more they could try and squeeze from WF.
That's the feeling I'm getting too. Honestly, if it came to it, I'd kick in a little extra to HSBC to make them go away.
The seller is current on all her payments for both accounts right now. Her husband was the bread winner and he passed away about a year ago. That's why she's selling really. So I'm pretty sure those amounts are accurate.
Just read this, if the seller is current on both accounts, then Wells Fargo should not be short, if they are short it is not going to be by much. Might be best to find the exact payoff and if it is close, agree to pay the difference on the first if it is short, then you can go to the second and work it out from there. As far as a contribution on the HUD, if the first is payed in full, they have no say in who contributes to the second.
Wow, another interesting and confusing one!
First, I dont understand why the lender would ask for a 60 day extension and then the hardship? (the hardship should have already been submitted at least with the offer.(maybe the listing agent is asking for the extention, as the buyer's agent did not leave a good time frame, then the buyer's agent is expressing this as the bank wants the exention???) Actually a "counter offer"
Second, scrap the auto valuations programs! Your Realtor should be advising you to this. And besides there will be BPOs done by real people, not computerized data systems.
Third, alot has to do with who the investor is FnMae, Freddie, etc. that will determine what the second is allowed and also will determine how to overcome any short falls, (besides looking to the agents! this is how we make our living!)
Fourth, If there is a so called professional negotiator, this should be all know up front!
After all this, it sounds like there is not even an approval yet, to have to address all these issues! Get the actual facts first!
What "actual facts" are you looking for? It's a little early in the process to have all that info. The offer was just submitted last week.
So far, it sounds like the professional negotiator is not completely up to snuff. The hardship letter should have been the first thing you should have gotten. Anyone who is anyone should have known that. And if you didn't know it, you should have had a Realtor represent you.
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