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Old 03-26-2008, 11:22 AM
 
16 posts, read 67,557 times
Reputation: 17

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Hello, I read through a great thread on several trials and tribulations from the buyer and real estate professional side of Short Sale.

I am a seller and need some advice. Pardon the novel, but I need you to understand the history..

Nasty divorce AND job loss. He took half of my retirement and hasn't even bothered to help with the mortgage or even try to sell the place. Day 1 of divorce, I continued to pay the mortgage. I did get renters for about 9 months. When I lost my job I moved out of state to live with family. Sold what I could and used my severance to pay my mortgage. Finally I heard from my realtor that the renters were trashing the place. I kicked them out and used the last of my nest egg to fly back and use my own elbow grease to clean the place. I now have no patience for renters. Forget it. That cost me a lot of money to clean it up.

Shortly after I kicked out the renters, I got a short sale offer at 80% of what I owe the bank (wells fargo). I have had a really great case with the bank, all of my court docs and evidence of my ex's lack of help with the mortgage and my job loss. I thought for sure the bank would take it. 6 months later, the bank sent a letter saying they rejected the short sale. They did not give a reason. That happened in November 2007

I thought I was destined for foreclosure. Fine. Take it, I will start my life over.

Here we are March 2008 and the bank still hasnt taken it. I have a new realtor and have relisted it. I received an offer at 50% of what I owe Wells Fargo. But the comps in the area are for 70%. We are counter offering at 70% pointing out the comps.

I would love the bank to take it free and clear of course. But I am MORE than willing to be resposible for any part of the mortgage not covered by a short sale, if I can get out of a foreclosure...

Before all of this I had credit in the 800. Thanks to a large attorney bill, job loss, and a lazy ex husband I am the one stuck with the mountain of debt.

Any suggestions on talking to Wells Fargo? I do not want to deal with renters again. Not an option living several states away now.
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Old 03-26-2008, 01:21 PM
 
4,145 posts, read 10,401,543 times
Reputation: 3339
Why don't you hire a property management company to handle the rental for you? Then maybe you can sell for a profit down the road?
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Old 03-26-2008, 05:31 PM
 
Location: Columbia, SC
10,915 posts, read 21,887,882 times
Reputation: 10549
I've closed them before and it can be tough. The key is to get an agent that has experience with short sales. They'll make it easier by providing you information on what you need to give to the lender (divorce papers, bank statements, pay stubs, etc.) to get approval and then do the rest for you.
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Old 03-27-2008, 03:06 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,249,630 times
Reputation: 6469
Perhaps investigate whether a deed-in-lieu of foreclosure might be appropriate.

Good luck in any case
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Old 03-27-2008, 03:31 PM
 
27,206 posts, read 46,599,387 times
Reputation: 15661
Recently a title company in our area had an article in the newspaper and how they changed to work with short sales too. They needed to learn a lot to be able to help agents and assist FSBO sellers to work through this new area of home selling.
Maybe you have a good title company you can ask which realtors are doing a lot of short sale closings. A short sale closing is different than doing short sales and not having one closed. Although a realtor might state that he/she has done many short sales. It is all about getting the deal closed.
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Old 03-27-2008, 05:11 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,879,105 times
Reputation: 1009
Gosh, you poor thing! I'm so sorry you are dealing with all of this! I would try again with the bank. I just had a short sale going with a bank that after all of our work changed their policy and said, nope, no short sales anymore. What they did do...get this...they reduced the sellers mortgage by approximately $60K and she is free to sell it after making payments for 3 months. She's not responsible for the difference, either.
I wish my bank would do that!
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Old 03-28-2008, 01:05 AM
 
Location: Montana
2,203 posts, read 9,299,224 times
Reputation: 1130
I agree, these lenders need to get their act together and find an efficient, equitable way to start handling these short sales. L4P12, I'm so sorry for your difficulties. I have represented the buyer in a successful short sale that had already hit the trustee sale stage. The listing agent was one I'd worked with before and he worked tenaciously on the deal, even though it was his first short sale. Here's a few of the things I learned on this particular short sale. They may, or may not, be applicable to yours but it might help.

1) Make sure your agent is in touch with the correct person in Loss Mitigation. If this is already set for a Trustee's sale, it will be more difficult to do the short sale, as someone in charge of the Trustee's sale has got to be willing to back off on the foreclosure and accept the short sale. I've heard that lenders are very reluctant to do this because they have so many legal fees, etc, invested in the property at this point.

2) Don't accept "No" for an answer. We got a "No" on our deal, and we went over the "case worker's" (don't know what his title was, so I use that term for lack of a better one) head to a supervisory level. It was reassigned to a newbie who actually told us how to resubmit the offer to get it accepted. BTW, this was a reasonable, all cash offer. No reason the lender shouldn't have accepted it.

3) It was advantageous in this short sale to lower the offer price but include closing costs. Same net to the lender but they didn't like to take the hit for closing costs. With the buyer paying the closing costs, it was a non-issue for them. (Ex. using hypothetical figures: 1st Offer - $285k with seller/lender paying $19,000 closing costs, delinquent taxes, etc. 2nd Offer - $266k with buyer paying closing costs, taxes, etc.) The lender rejected the 1st offer after 5 weeks, but accepted the 2nd offer and we closed 2 weeks later.

Hope something in this helps you get your short sale done!
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