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Old 08-14-2008, 08:00 AM
 
25,338 posts, read 37,471,570 times
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Some mortgage banks are only doing short sales in certain cases when the seller accept a judgment and either you take that and keep you credit score not going to be to much affected or you can go into foreclosure. After all it isn't the seller who can decide what the bank has to do....the seller should have kept to the agreement he signed and if he is not that others will decide his faith.
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Old 08-14-2008, 02:47 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
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Quote:
Originally Posted by bentlebee View Post
Some mortgage banks are only doing short sales in certain cases when the seller accept a judgment and either you take that and keep you credit score not going to be to much affected or you can go into foreclosure. After all it isn't the seller who can decide what the bank has to do....the seller should have kept to the agreement he signed and if he is not that others will decide his faith.
More often than not the bank WILL accept a short sale..

First.. call your lender and tell them you are putting the house on the market and it will be a short sale (in this market they assume ALL are short sales). They will send you a packet of information that you fill out.. all your financials showing your income monthly and your expenses including your current mortgage payments (what they are if you were paying them). Stubs are used and if you are self employed or own a business you need to show a profit /loss statement for 3 months prior (this is how it was done for mine).

Meantime.. put your home on the market based on your Realtors advice. The bank will then send their own appraiser to the home to do an appraisal so they know exactly what the market value is.. this way they know what offers they will or won't accept.

I adjusted my price after the bank appraisal and I now have 2 offers on my home.. believe it or not the are going up against one another to get my house.. a testament to the fact that a) priced right and b) my house is nice (it truly is!).

The bank has all they need from me.. all they ended up waiting for is the buyer.

For them NOT to do a short sale makes NO SENSE! They really don't want to own your home, maintain your home. .etc. they are more likely to get better deal and more money as a short sale than they would recover in a foreclosure. It would be very stupid for any lender to turn down a short sale..

Only way they'll do that is if you have enough income to cover mortgage and/or have money or assets that could cover the difference.. and most don't.
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Old 08-14-2008, 03:09 PM
 
25,338 posts, read 37,471,570 times
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Quote:
Originally Posted by TristansMommy View Post
More often than not the bank WILL accept a short sale..

First.. call your lender and tell them you are putting the house on the market and it will be a short sale (in this market they assume ALL are short sales). They will send you a packet of information that you fill out.. all your financials showing your income monthly and your expenses including your current mortgage payments (what they are if you were paying them). Stubs are used and if you are self employed or own a business you need to show a profit /loss statement for 3 months prior (this is how it was done for mine).

Meantime.. put your home on the market based on your Realtors advice. The bank will then send their own appraiser to the home to do an appraisal so they know exactly what the market value is.. this way they know what offers they will or won't accept.

I adjusted my price after the bank appraisal and I now have 2 offers on my home.. believe it or not the are going up against one another to get my house.. a testament to the fact that a) priced right and b) my house is nice (it truly is!).

The bank has all they need from me.. all they ended up waiting for is the buyer.

For them NOT to do a short sale makes NO SENSE! They really don't want to own your home, maintain your home. .etc. they are more likely to get better deal and more money as a short sale than they would recover in a foreclosure. It would be very stupid for any lender to turn down a short sale..

Only way they'll do that is if you have enough income to cover mortgage and/or have money or assets that could cover the difference.. and most don't.
Most banks will do a short sale...and some will only agree if they get the full mortgage back or a little bit less, depends on how much is owed...and the one i bought...the mortgage lender only agreed with the offer price if the seller took a judgment or i had to raise my offer, which i declined and the seller took the judgment to get out of the house. So the lender ended up losing less and the seller still owed a little bit and I got a could deal...
If the seller had not taken the judgment she would still have been stuck with the home since the lender didn't want to go lower.
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Old 08-14-2008, 04:01 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,484,948 times
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Actually the complexity on a short is one that has not been mentioned.

In general the lender in this case is a mortgage processor and does not own the actual paper which may have multiple owners for various pieces.

One problem is that the processor has a fiduciary duty to the actual mortgage owner, Some of these mortgage owners have been raising questions about the terms and conditions of short sales.

So accepting the terms of a short opens the processor to claims of not fulfilling their fiduciary duties. However once foreclosed it is all clean and proper. So some are electing to decline shorts unless under very good conditions.

That says that Bentlebee will never get a short accepted by these processors.
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Old 08-14-2008, 04:51 PM
 
Location: South Fla
1,044 posts, read 1,722,379 times
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Quote:
Originally Posted by bentlebee View Post
Most banks will do a short sale...and some will only agree if they get the full mortgage back or a little bit less, depends on how much is owed...and the one i bought...the mortgage lender only agreed with the offer price if the seller took a judgment or i had to raise my offer, which i declined and the seller took the judgment to get out of the house. So the lender ended up losing less and the seller still owed a little bit and I got a could deal...
If the seller had not taken the judgment she would still have been stuck with the home since the lender didn't want to go lower.
Question, I am going to be going through the buying process within the next few months and will be focusing my efforts on short sales or foreclosures, I have heard that realtors are listing homes with an asking price that is less than what the bank will actually let it be sold for? Was this your experience or was your offer less than the asking price?
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Old 08-14-2008, 05:13 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,484,948 times
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Quote:
Originally Posted by LLLL98 View Post
Question, I am going to be going through the buying process within the next few months and will be focusing my efforts on short sales or foreclosures, I have heard that realtors are listing homes with an asking price that is less than what the bank will actually let it be sold for? Was this your experience or was your offer less than the asking price?

But of course. Real Estate Agents do not know what the bank will take on a short so they set the price low enough to get quick offers and start the process.

I would also not be surprised at foreclosures listed at below a reasonable sale price. Works pretty good sometimes too...get three people bidding and you end up above a reasonable asking price.

So do your homework and offer what you think the place is worth. That is not priced against non-foreclosed comps. But at against where the REPOs appear to be selling.
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Old 08-14-2008, 05:24 PM
 
Location: South Fla
1,044 posts, read 1,722,379 times
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Quote:
Originally Posted by olecapt View Post
But of course. Real Estate Agents do not know what the bank will take on a short so they set the price low enough to get quick offers and start the process.

I would also not be surprised at foreclosures listed at below a reasonable sale price. Works pretty good sometimes too...get three people bidding and you end up above a reasonable asking price.

So do your homework and offer what you think the place is worth. That is not priced against non-foreclosed comps. But at against where the REPOs appear to be selling.
I've gone on the county property appraisers and there are huge differences, some $250k, others $75k, virtually the same houses in the same neighborhoods, however there aren't a lot of recent sales to compare to, most of them are from early 2007. The area that I am looking in has about 10 houses for sale that are listed in my price range, so I was thinking I wouldn't have a problem in buying one. I guess I'm going to be out of luck. I would have thought that realtors would have to get the asking price approved before putting it on the market.
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Old 08-14-2008, 06:10 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
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Quote:
Originally Posted by LLLL98 View Post
Question, I am going to be going through the buying process within the next few months and will be focusing my efforts on short sales or foreclosures, I have heard that realtors are listing homes with an asking price that is less than what the bank will actually let it be sold for? Was this your experience or was your offer less than the asking price?
I know you ask Bentlebee.. but I can answer that. I'm in the process now.

Banks will usually accept about 90% of the appraised value.. no less than that (atleast in my case). I put it on the market priced with other homes.. but when the appraisal came in it came in far less than I thought it would (and still feel it was undervalued..but i think appraisers are not super cautious and appraising DOWNWARD). So I lowered my price. Once I had the appraised value the lender told me he minimum offer they would accept..

BECAUSE my home is priced right I"m getting ALOT of activity. I priced it at 19K above the appraised value in the hopes of negotiating. Turns out I have two offers and both are now at the appraised value. However, the bank WILL NOT sell the house or take the offer for one that is higher than the appraised value.. because then there runs the risk of the person not getting the mortgage..

So.. you need to know what the bank appraised it for and what there minimum % of value they would take. In my case the minimum was 90% of appraised value.

THey will loose more money if they foreclose...
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Old 08-14-2008, 06:12 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
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Quote:
Originally Posted by LLLL98 View Post
I've gone on the county property appraisers and there are huge differences, some $250k, others $75k, virtually the same houses in the same neighborhoods, however there aren't a lot of recent sales to compare to, most of them are from early 2007. The area that I am looking in has about 10 houses for sale that are listed in my price range, so I was thinking I wouldn't have a problem in buying one. I guess I'm going to be out of luck. I would have thought that realtors would have to get the asking price approved before putting it on the market.
County appraisals are ALWAYS way off.. the reasons is because there is some guy behind a desk that pushes paper that is valueing your home without ever setting foot in it and comparing one to another..

My home is now appraised HIGHER than the actual market appraisal and what it will sell for.. and that is a selling point. Because when the people buy the house they grieve the taxes and use their HUD to prove it's market value.. property taxes will decresae.
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Old 08-14-2008, 06:19 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
Reputation: 908
Quote:
Originally Posted by bentlebee View Post
Most banks will do a short sale...and some will only agree if they get the full mortgage back or a little bit less, depends on how much is owed...and the one i bought...the mortgage lender only agreed with the offer price if the seller took a judgment or i had to raise my offer, which i declined and the seller took the judgment to get out of the house. So the lender ended up losing less and the seller still owed a little bit and I got a could deal...
If the seller had not taken the judgment she would still have been stuck with the home since the lender didn't want to go lower.
I think that may be more of an issue in states that Can come after you for the differnce. In NY they can't.. only can take the house or value of the house in lieu of payment. In short sale you get hit with "settled in less than fulll" but you owe nothing.

They still get far less niforeclosure in time , expense and what they draw on the market than a short sale.
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