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Most people (not all) are "upside down" on their mortgages if they bought during the bubble, even some who didn't buy during the bubble since prices have gone so low.
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The number of folks that are currently in a negative equity situation is NOT most, or even many -- in fact the research that only a TINY fraction of people who have been in such a situation will cost the banks any money at all: http://www.google.com/url?sa=t&ct=re...BODNcZM2o-81vg
That report shows EXACTLY why it's not the "credit destruction" that motivates people to stay, but the fact that MOST people can afford to be upside down on their mortgage -- they will EVENTUALLY get BACK to positive equity.
Thus it is true that lenders WILL NOT allow short sales on a whim, but they pretty much MUST do so when the seller is insolvent. Lenders are not in the "fresh start" business. Anybody remember "Latin America Debt Forgiveness Crisis"? No lender wants to replay the Continental Illinois Bank collapse...
Yes the really fun part is that I have never even actually seen the home (only my husband has)! My husband took lots of pictures for me though. We have a stipulation in our contract that lets us out of the sale if it takes longer than 60 days - which I know means nothing to the bank but if it takes too long we can move on.
We would have moved on awhile ago but we love this house. This is the only house my husband and I both agreed on and loved. We are both really picky I guess. I still check online listings every day but I haven't found a house that even compares to this one (that we can afford). If I found another house that I liked, I might have moved on.
A HUD1 is the financial statement that is submitted to the bank to show what the outcome of the deal would be...a pre-closing statement.
Since they ordered an appraisal already, that is a good sign.
What did the appraisal come in at, do you know?
We would have moved on awhile ago but we love this house. This is the only house my husband and I both agreed on and loved. We are both really picky I guess. I still check online listings every day but I haven't found a house that even compares to this one (that we can afford). If I found another house that I liked, I might have moved on.
I know what you mean. I don't know what we'll do either even though we can get out of it. This is an area where there aren't a lot of short sales so if we don't get this house, we will not get anything nearly like this house. This house doesn't appeal to most buyers but it fits our family's needs perfectly. I too am checking the listings daily just in case though. Thanks for posting this thread - I am learning a lot about what to check on/expect for our short sale!!!
I just saw a short sale listing that was on the market about 1 month and is now pending. The short sale I bid on is over 3 months with nothing.
I found a few short sale stories that got approved in a few weeks but most of them got approved around 3 months. I guess we are in a similar situation and are waiting a bit longer. I hope that is not a bad sign.
A HUD1 is the financial statement that is submitted to the bank to show what the outcome of the deal would be...a pre-closing statement.
Since they ordered an appraisal already, that is a good sign.
What did the appraisal come in at, do you know?
I have no idea what the appraisal came in at. I thought it was a great sign that the appraisal was done but after that there was just no progress...From what I read from other stories, they got approved after just 2 weeks after the appraisal...It has been over a month since the appraisal was done and I am definitely getting worried...
I know what you mean. I don't know what we'll do either even though we can get out of it. This is an area where there aren't a lot of short sales so if we don't get this house, we will not get anything nearly like this house. This house doesn't appeal to most buyers but it fits our family's needs perfectly. I too am checking the listings daily just in case though. Thanks for posting this thread - I am learning a lot about what to check on/expect for our short sale!!!
The area we are looking at has a lot of short sales but none even come close to what we are looking for. We did see a house that was a clone of this house but it wasn't a short sale. The price was higher and it was inactive in about 3 days so I know we are getting a great deal on this house. I hope our patience pays off and we both get our house.
It's time to start asking some questions.
1. has the seller been approved for a short sale
2. has it been assigned to a particular person..meaning has a particular mitigator been assigned.
3. has the BPO (broker's price opinion) or appraisal been ordered yet.
4. is this with a bank directly and which one or is there a asset management company involved.
5. are there two loans involved or one.
6. is PMI involved.
7. was a HUD1 submitted immediately with the offer or when was it submitted?
If they can't answer any one of those questions at this point, then they don't know what they are doing and your chances are pretty slim.
To the person who stated you can't get a short sale if you aren't behind in your payments, that is dangerous and erroneous information. Many people are being encouraged to fall behind in their payments to justify or facilliate a short sale and that is just plain old incorrect.
Thank you for pointing that out. Although it is not erroneous info. It has just changed. It used to be the case and now it's not.
Maybe you should ask or search the public records, how much is owed on the home and if there are tax liens, HOA lines, how high the mortgage is, etc...
The higher the amounts and the more liens, the chances will get smaller to have the bank to agree on a short sale, unless the offer is covering enough.
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