I’m finding it easier to work with some banks than others. Does anyone have a list of whose hard and whose easy to work with?
Great question Joanne!!! I’m going to leave this at the top of the list and ask everyone to add comments with their current experiences. I for one have heard that Countrywide is a pain - makes sense that they are not as motivated as they should be given their pending acquisition by BofA.
My info is that Countrywide has a problem “making deals” across the board whether short sale or bulk sale because they do not own ANY of the assets (home loans) that they service. They actively market on their homes on the web and at third party auctions so that they can demonstrate to the investors that own the loans that they are selling them for market value.
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In the last few weeks I have heard rumors that CW is opening up and has been approving short sales but I do not have firsthand knowledge.
- We have a CW short sale that has not been touched for 5 weeks. Complete package sent - they quoted 2-3 weeks, then all the excuses. We were promised it would be assigned and hasnt.
? - Downey and First Franklin were predictable and were relatively easy to deal with.
? - Just submitted to Indymac and they are quoting about 60 days.
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Bottom line - you gotta keep up on them. If not, you SS will get lost in the system.
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BOB
GMAC has got to be the worst! they will not accept a short sale offer…and demand fair market value only!
Does anybody know about Chase?? So far it’s taken me 2 months and 2 loan workouts that DON’T WORK!!!
Sounds to me like you already know about Chase - yikes! Thanks for letting us know.
Indymac came thru - just fully approved the short sale submitted 60 days ago - was approved at about 45 days, then another 15 days to haggle terms w/ CW for 2nd -
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Both Indy and CW waived their rights to recover any deficiency judgement (great for Sellers, esp since this was a cash out refinance from 2007 and the banks are eating over $250,000) and they paid 6%.
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The formula is Persistance, more Persistance, dont take NO for an answer, patience, then some persistance and more persistance.
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BOB
Wow! No recourse on an 07 cash-out refi. I have a feeling those sellers will be your customers for life. That’s a point I think a lot of Realtor’s miss. Rolling up your sleaves and getting a short sale done is something many sellers will be far more grateful for than a typical transaction. It moves you to rock star status, and will likely earn you a bunch of referrals and a return customer in 2 years after the preforeclosure guidelines have passed. Nice job!
OK…the house is up for short sale, and we received a cash offer. My realtor says she closed on 4 short sales prior to mine in the last?2 months. She’s a real pistol! She says that my 2nd (EMC) are very easy to work with, however we’ve yet to see what CHASE says, so I’ll keep you posted. My biggest fear right now, is what happens when it’s done. I’m really scared about the difference, and repercussions…
Tammy -
It appears you are working with a good agent who has some short sale experience. If the cash offer is low relative to the current value of the property, then the bank probably wont take the offer. The good news is that it gets the bank process going and they will order an appraisal and push it along to a negotiator. If the offer is strong - ie within 5-8% of the current value, then the bank should take the deal. I presume you are still marketing the property for other offers?
As far as what happens next really depends whether the short sale happens or not. Be patient, the short sale process is rather long - You will be in a MUCH better position completing a short sale vs being foreclosed on. Fannie Mae, just came out with a memo stating that Sellers who short sale can purchase again in 2 years vs 5 years if a Seller gets foreclosed on. I posted the?memo someplace on this site and would sent it to you if you e-mail me at bob@inspiragroup.com and request Fannie Mae 6-25-08 memo.
If the short sale is successful, you will know the moving dates, so it will be rather smooth. If your loans were primary residence?purchase money, then there is no recourse as far as deficiency judgement or tax consequences (mortgage relief act 2007)- This is really a great outcome, under the circumstances. You can buy a home in 2 years (still need to qualify) and no further obligation and no tax consequences.
If the home was a cash out refinance or non-primary residence, the see if your Realtor can negotiate a release of the banks right to a deficiency judgement - that would be great. If you are “insolvent” as defined by the IRS, then you will owe not taxes - obviously, you will need to seek an accountant for more specifics in this area.
Good luck - dont stress! Get the facts - the answers are there.
Bob
Be careful of Indymac - They approved the short sale, then the day of funding cut the commission to 5% saying the old letter was simply a pre-approval. They sent out 5,000 what looked like approvals, but?they are now calling?pre-approvals and then reviewing the files when they recieve the wire or just before if you push hard enough.
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Frustrating, esp when we delivered 100% of BPO and kept the deal going - is the most money they will have gotten from this property.
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On to the next one -
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BOB
WOW, I just got an approval from GMAC (but it was being serviced by Homecomings) and its a great approval!!? But we DID bring it in at above the BPO value.?? They sat on our first offer of $310 for a while and finally after we got the approval, we had lost the buyer to a faster short sale approval. ? Luckily, I was able to get an even higher offer to them!!? This one is in escrow now, but the net sheet was off by close to 3 grand for taxes and HOA fees.? I am hoping they are OK with this and escrow can proceed! But I have heard nightmares about them wanting to knock your commission just to close a deal and they better not try that!
BOB, NO WAY!!!? I can’t believe IndyMac did that!!!? I learned a thing or 2 about them. ? 1.) they always try and get?the seller?to pay $300 for the BPO (ridiculous!!).? If you have the sellers write a hardship letter about how hard their finances are right now and basically say they can’t afford it and pepper it with sad stories, they will waive the fee completely. ? 2.) They’ve just been taken over by the Feds.? Now they have to Mod ANYTHING, making short sales obsolete with them unless the seller wants to just dump the home or doesnt have a job. ? I had a deal approved with them, I’ve been working with the sellers since February and they haven’t paid in 14 months!? I’ve been getting the trustee sale postponed monthly since May!!? The sellers came in and we called IndyMac, they offer them a “Stip to Mod”.? If they pay ontime $1500 for 3 months, they will be offered a modification and wll be able to keep the house.? ? This is great for them because they get a guaranteed $4500 and then they can later say “Well at this point you only qualify for $2000 a month, take it or leave it” and they will be in foreclosure again.? This time, without the buyer.? I’ve sold the home 3 times.
So much for Indymac being my poster child of a good lender to work with on short sales. Just when it seemed short sales were getting a bit easier, these unsustainable loan mods really seem to be throwing a wrench in the works. Who wouldn’t be willing to stay when they are willing to mod loans to payments that are lower then rents. The next few months are going to be very interesting to watch. Also please comment on Indymac on our Short Sale Report!!!
Great stuff ShortCutz. Please create a profile and login -nice bit of free advertising for you. Also, would love to see you comment on the lenders you’ve worked with on our Short Sale Report. Thanks for posting!
To make the process work, you have to have a buyer who just wants that property and is willing to wait three to four months.
Please note the addition of our new Short Sale Report!!!
Chase was very difficult. Holds the record for taking the longest out of the 10 or so I’ve closed so far… Took 8 months total… Hope your experience is different!
Chase was horrible waste of time I just cancelled 2 listing with them as the lender because after taking 7 months to approve a different deal they sent it to auction simultaniously while accepting a short sale offer. Mind you I?had?it in escrow @ 189k and they just did cash 4 keys of 3k and are listing @ 147k smart move. It’s all the gov money it does matter 2 them. DON’T take Chase deals!