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I currently have an offer in on a short sale that has been accepted by the sellers. The loan is with Countrywide and I'll be lending from Countrywide (decided to go with Countrywide prior to finding this home) so I'm hoping that it will make things a little easier.
Anyway, my question is am I as the Buyer (or potential buyer) able to contact Countrwide to see what the status is? If so, what information do I need to have and what has been the best contact number to do so? Its not that I can't go through my Realtor, but for my Realtor to contact the sellers Realtor, to then contact the bank it just seems easier to go straight to the bank to find out. Hopefully we'll have everything done and be able to close by the end of November, since that is when we need to be out of our house.
JDS300,
It has been my experience with short sales, that the loss mitigation department will not communicate with the buyer. They hardly ever even communicate with the listing agent. I know it can be really frustrating to wait for a decision or action from the bank. I hope you have a lot of patience and time.
I agree with Sandy. I haven't dealt with short sales, but with foreclosures, and there are times when the bank won't even talk with THEIR agent and, if the buyer contacts them directly, won't talk to them. In any deal involving a bank, you have to plan on having things take a whole lot longer than they would otherwise. If they don't, it's a happy surprise. But two or three times as long as the ordinary deal with nonprofessional sellers should be assumed from the get-go.
You'd think it would be the opposite, given that you are presumably dealing with professionals whose job it is to get the property sold, but having dealt with this, I'm beginning to understand the why of the financial meltdown we just went through.
The bank will not deal directly with a buyer or a buyer's agent on a short sale. The people in a banks loss mitigation department will only deal directly with the owner or the owners designated intermediary.
When looking to buy a short sale property, ask if the owner has completed their hardship paperwork and filled out a 1003 (loan application). If that hasn't been done up front then it will take much longer to get a bank decision. The bank will want to be sure that the owner doesn't have assets before accepting a short sale.
Also be aware that regardless of what you've may have heard, the short sales that close are at about 70% of loan value and costs or better. Also be aware that if there are seconds that are unresolved you may never get to the closing table.
As other's have said, the bank won't talk to you or your agent. Only the seller or those they have given written permission for the bank to speak to. Unfortunately you are in the dark until you hear anything from the sellers. I always advise clients to tread carefully when dealing with a short sale as they take forever when the listing agent actually knows what they are doing, and can be downright impossible if the listing agent knows nothing...which most don't. This can be mitigated by asking through questions of the listing agent and guaging what their response is....those of us that have dealt with short sales before can tell who knows what and who's faking.
Since you said it is Countrwide that holds this seller's loan, be aware, they are in my opinion the WORST lender to work with. They change their "policies" almost overnight, lose paperwork more than most (they all do) and are a pain in the butt to get in contact with anyone that has any actual authority. They now even have an automated system you have to go through that will basically say "your loan is in process, DO NOT CALL US until X/XX/XX" and won't let you speak to a human being. Good luck!
Quote:
Originally Posted by FLBob
Also be aware that regardless of what you've may have heard, the short sales that close are at about 70% of loan value and costs or better. Also be aware that if there are seconds that are unresolved you may never get to the closing table.
As far as the 70% of loan value statement, I find that to be a useless measure. The banks will accept any percent below what the loan value is, it all depends on what the bank thinks it can get on the open market...if that is only 50% of the loan value they will take it. Second liens onthe property do complicate the short sale process, but by no means does it mean you won't be able to get the property. The second lien holders know that they will be wiped out completely in a foreclosure (here in FL at least) so they are willing to accept just about anything in a short sale. They usually retain legal rights to place a judgement on the seller for the balance anyway after the Short sale.
I didn't think the bank would talk to anyone but the listing agent/sellers, but figured it was worth a shot. I do understand the process is very long (hopefully not as bad here in the midwest as other areas).
I'm not sure what the sellers have done so far with the bank, but I know we had to sign a bunch of stuff when we submitted the offer in regards to the short sale. Hopefully that means that something was already done on their end.
Actually as long as the buyer agent has a release they can talk to the bank. I did a short sale where I represented the buyer The seller didn't have an agent (was in BK so had a good attorney). The seller just signed a release for me to talk to the bank and they did. They just want the release.
If there is a good listing agent on the other end, there is no point. These deals can just take time.
Actually as long as the buyer agent has a release they can talk to the bank. I did a short sale where I represented the buyer The seller didn't have an agent (was in BK so had a good attorney). The seller just signed a release for me to talk to the bank and they did. They just want the release.
If there is a good listing agent on the other end, there is no point. These deals can just take time.
I agree.
Two issues here. First, the lender doesn't want to run afoul of privacy rules and open itself up to a lawsuit from the seller, so they want the seller to consent in writing before talking to the buyer. Second, banks are notoriously difficult to deal with. With a release, you might be able to get past the first one. The second one is not so easily addressed, but you might get lucky. Good luck.
You are able to contact anyone you want. The issue is that they are highly unlikely to respond.
Kind of defeats the purpose then, no?
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