I have two separate customers who are way upside down in their mortgages, but they're current on their payments and can likely stay that way. If we were to begin offers for sale to the lenders (one is Chase and the other is BOA, and both are single-lien situations) would they consider our offer?
Alex Krumm
Re/Max Alliance Group
Broker Associate
GRI, Certified Distressed Property Expert
Winner, Five Star® Best In Customer Satisfaction: 2010, 2011
941-234-3597 Direct
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Jackie Kumm said:
Jim-regarding your indy mac, was your little old lady late on payments? As I have found that it helps that thier payment is late, but not deliquent as to reporting on the credit report.
Jim Stewart said:Evelyn, my lone attempt at getting a non-DQ short sale done mirrors yours. Indymac wasted about 60 days before telling us that they wouldn't even consider it unless the borrower was DQ. When it was finally approved (we were within days of foreclosure by that point) they wouldn't even forgive the deficiency on an 85 year old woman with ZERO assets. Nice.
Hi Alex,
If your sellers can prove that they have an acceptable financial hardship, both of these lenders will consider short sales. They may offer a modification first, but it can be accomplished.
Alot of this is going to depend on your clients financial situation. I always advise my clients to stay up on their payments the best that they can. Hence, most of my clients are current, it is just mighty hard for them. Short sales are not available to people just because the value of their home is lower than it was a couple of years ago, there does have to be a hardship there. Your best bet is to sit down with them and figure out if they can afford the house. If they can't then they are candidates for a short sale. You can have them call the hope hotline and have them fill out all the paperwork. They will be able to advise them if they are able to qualify for a short sale financially. http://www.makinghomeaffordable.gov/pages/default.aspx 888-995-HOPE
Good Luck
Definitely short sales can be done if the Seller is not in default, but the Seller needs to show definite hardship. Just being upside down is not enough. From what I understand, a Seller needs to show how their savings is being depleted and that they will not be able to pay in the near future. I know of agents who have done many short sales without Seller in default, although I have not.
I think they would. I have worked several short sales were the homeowners are current but are in a situation where they need to sell the home short. The only time I have run into a lender telling me that they needed to be 60 days delinquent was from AHMSI (American Home Mortgage Servicing) and it was the PMI company that was requiring it not the lender.
We just waited out the 60 days and moved forward, I think anything is worth a shot!
Thank you
Kristin
I am doing one right now and the Sellers are current on both loans. It is Wells Fargo lst and Greentree 2nd and both are approved. It depends on the Lender.
Lori Bacon, ABR, GRI, E-Pro
ERA Real Estate Professionals
Virginia Beach, VA
Wow, thats great Lori, how did you ever get Greentree to agree to accept the allowed payoff to them? I have worked 2 files with greentree as the second and they always require more than the first will allow and it kills the deal.
Maybe it has just recently started that Greentree is accepting the $3,000. Most of the 2nd Lenders are accepting $3,000 because that is all they can get. Maybe Greentree is now accepting $3,000 rather then getting nothing. I sent in all the Seller doc's and they approved it before Wells Fargo. How long ago did you have the files with Greentree?
Lori Bacon, ABR, GRI, E-Pro
ERA Real Estate Professionals
The only bank I've had trouble with is OCWEN. The loan was owned by Freddie Mac and I'm still working on it but they denied it originally and now have resubmitted it. The seller was relocated to another state for work and is using some of her relo bonus to stay current as she feels its the right thing to do.
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