Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on October 10, 2012 at 2:38am

The Agent for the Seller (who in this instance also happens to be facilitating your offer) should have submitted to BOTH the 1st and the 2nd at the same time so that both processes could have been moving forward simultaneously.  In most cases the 1st will handle the 2nd if they are the same servicer.  If the 2nd is serviced by WFHE, but owned by a different investor, it may take a little longer.  Also, if the 2nd has been sent to collections, that will offer more challenges. 

The WFHE may take anywhere from 30 - 90 days to be reviewed and countered or approved.  In CA, there can be no request for Cash Contribution nor Promissory Note.

Best of luck,

Permalink Reply by Danny D on October 10, 2012 at 5:40am

Thanks Thom...

 

Our agent seems to know what he is doing, and it is too late for us to judge him...i hope you agree...

 

Looking at all the messages on this site, it seems 10% is the norm...we are just hoping an approval...

Permalink Reply by Jim McCormack on October 10, 2012 at 3:46pm

I think it depends on the circumstances regarding the 2nd as to whether to submit both at the same time, or not.  I usually don't because in my experience the 2nd won't do anything until and unless they receive an offer from the 1st (via the HUD1), or an approval letter.  Since the 1st also wants the 2nd approval you end up in a catch 22.  Therefore, I submit the 1st and then wait until it looks like we might have a viable offer based on the 1st lender's valuation and then I submit the short sale to the 2nd with an amount going to the 2nd that is a lot lower than the amount going to the 2nd on the HUD1 that I sent to the 1st lender.  That way I find out the 1st lender's maximum and 2nd lender's minimum ASAP and can, hopefully, get approvals from both lenders.

Regarding the servicing in this case, Wells Fargo and Wells Fargo Home Equity are 2 different entities so they will have to be handled separately by the listing agent.  I think Chase still works the same way on their 1-2 loans.

Permalink Reply by Danny D on October 12, 2012 at 7:42am

 

Thanks Jim

 

Perhaps that is what our agent had in mind; he is in constant touch with us. Just now I heard, negotiator from the 2nd called and wanted some updates on the HUD1, and it will be few days before we hear back from wfhe (as per our agent). Auction date is postponed as well....we all are hoping...

 

Do share what can we anticipate (based on your experience)...thanks in advance...

 

Permalink Reply by Jim McCormack on October 12, 2012 at 8:01am

Hi Danny. At this point, it is just going to come down to the 1st lender's valuation of the property, the most the 1st lender will pay to the 2nd lender, the minimum the 2nd lender will take and (to a lesser extent) the 2nd lender's valuation of the property.  If the offer is at least 90% of the 1st lender's valuation and the net is satisfactory to them then it is just a matter of getting the 1st and 2nd to agree on the payoff to the 2nd lender.  The key is to nail down one at a time so that the transaction gets more solid as you go along.  Please let me know how it proceeds.