New Short Sale Trend - Dumping seconds? (RE agent, loans, fees)

[olecapt]

In the last 90 days all three of our BofA (CW) short sales have split off the second to a different loan servicer. The result appears to have brought one to a halt and likely will do the same to the other two as we get into it.

We are getting a demand from the one second for 5% of whatever the prime lender gets...

There is also the one action rule in Nevada that says a lender cannot both foreclose and sue for the loan except by a difficult and seldom used defiency judgement procedure...now if the first and second came from the same lender at the same time are they one loan or two? So is a second from the same lender at the same time...ie the classic 80/20...one loan or two?

Practically it is going to make the process much harder. GreenTree the secondary on the one home is much more demanding and difficult than BofA...and when you get them to a position you then have to handle the dicker between GreenTree and BofA.

Sheesh...shorts are more poisoned than they were.

[Brandon Hoffman]

Agreed. I'm actually experiencing the same thing. Mine is stupid. Sale price 180k. Principal owed is 175k. Payoff with late fees/etc is 195k. Should really be a no brainer. BoA hasn't done anything with it and we've waited since May. Nothing.

[DMenscha]

I'm working a short sale where one of the 1st lien holders tells me they will give the 2nd $1000, the next representative tells me they always offer 5% of whats owed to the 2nd. The third rep tells me to negotiate with the 2nd. Excuse me? In what way do I have any authority to negotiate for you?

They do make it very hard to do the right thing for all the parties. Poisoned indeed.

Good Luck Captain.

[midnite rider]

not being a re agent,are short sales an advantage to a poss.buyer like myself?i feel bad for the person in the position to have to sell.........

[olecapt]

Originally Posted by midnite rider

not being a re agent,are short sales an advantage to a poss.buyer like myself?i feel bad for the person in the position to have to sell.........

A mixed blessing. You get a nicer house than a REO for the same or less than a REO. The bad news as that you will try more than one before you hit. Sometimes my clients may have as many as five offers out before a short hits.

It may take weeks to months to resolve any given short. I am presently working one that is a year old and still not near done. That is extreme but a couple of months is not. If you need a home by a date certain don't try for a short.

[midnite rider]

thanks ole..........

[gvc8]

Originally Posted by olecapt

In the last 90 days all three of our BofA (CW) short sales have split off the second to a different loan servicer. The result appears to have brought one to a halt and likely will do the same to the other two as we get into it.

We are getting a demand from the one second for 5% of whatever the prime lender gets...

There is also the one action rule in Nevada that says a lender cannot both foreclose and sue for the loan except by a difficult and seldom used defiency judgement procedure...now if the first and second came from the same lender at the same time are they one loan or two? So is a second from the same lender at the same time...ie the classic 80/20...one loan or two?

Practically it is going to make the process much harder. GreenTree the secondary on the one home is much more demanding and difficult than BofA...and when you get them to a position you then have to handle the dicker between GreenTree and BofA.

Sheesh...shorts are more poisoned than they were.

we just closed on a short where the 1st and 2nd were both wells fargo loans obtained at the same time. they were handled by different areas of the bank with different negotiators all the way down the line. the 1st approved in about a month but the 2nd waited another month, but all in all , offer to close was a touch over 90days . guess we got lucky.