Working wonders with short sales, Janet and I have a short sale where the second lean holder wants a $25,000.00 promissory note; which the seller can’t come up with. The second has PMI which adds to the challenge. Normally a seller who elects to sell short doesn’t have the capital to make the payment and is trying to do the right thing by using the short sale option and not foreclosures. The challenge where’s the money coming from; in some cases the agents will use some of their commission to close the deal. (On a side note that 6% commission is not what it seems to be, on at $100,000 short sale, some banks reduce the commission to 5% then with the splits with the selling side and buyer side that becomes 2.5%. Don’t forget the split with the Broker now we are at 1.25% that’s $1,500 gross. Added costs EO insurance and some fees typically $350.00 total in my office and we are $1,150 and with short sale taking 60 days to close (and that a fast one) the agent doesn’t have much to contribute.) We did the unthinkable, we went to the buyer. The home is just what the buyer wants in the right location and resale in a few years could be substantial.
The buyer ponyed up and we've pulled the deal out of the morgue and are looking to close in a few days… Having an expert in you corner with the experience in short sale transactions is a must, don’t let the deal die, there is always a way to make it work.
Richard & Janet - Certified Short Sale Professional
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com
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I have spoken to many of the lenders and they are not spending much time investigating fraud....YET. But you can be sure the MI companies are. They are the ones taking the major beating. If they find out a deal is fraudulent they don't have to pay. I think we'll be hearing a lot about fraud in the next few years.
As co-founder of this site I do NOT recommend using the tactic as outlined by Richard. If he's comfortable doing a deal this way then that's between him, his seller/buyer and their attorneys.
ShortSaleSuperStars and ReGrow LLC does not condone any transaction involving secret agreements or funds transferring hands that are not fully disclosed on the HUD..
In this case for you... was it a conventional loan ? just curious... how much was the 2nd lien for that they wanted 25K to settle?
We are desperately trying to find a way around this roadblock we are in. Our 2nd wanted 25K on a 50K baln and we negotiated down to 15K but can't get the contribution through FHA guidelines. (California purchase money loans)... Any input or response is greatly appreciated !!!
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