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I am trying to buy a short sale from my ex-husband. He bought it when we were seperated. We have been divorce for more than 10 years. He remarried bought another house. Now he can't afford 2 houses and he wants to do a short sale, can I buy it?
Welcome to the forum (your first post) - your answer is yes. Enough time has transpired since you were married, I wouldn't even bring it up.
You need to pre-qualify for a mortgage first, that way you can get a prequal letter to show your ex's bank you are serious about purchasing the property. Find a loan officer that is going to work with you.
To your home work! Find out what the value of homes are in the area. I suggest you use Cyberhome,com to find the value (this site is more accurate than Zillow) .
You are going to make three offers - your 1st, you are really going to low-ball the selling price to sell if they will come down. The bank might actually accept it. Your 2nd offer make halfway of what they reduced the price to. Ask for an inspection, then after that make a third offer.
Once you have a finalized offer, go back to the loan officer and have him type up a prequal letter indicating the amount of the last offer agreed to.
When it comes to buying a property, it will seem everyone you speak to is trying to get their cut of the pie. No one is going to hold your hand when you are making offers. Remember you need to start low and not go up too high.
Good Luck
Last edited by Green Irish Eyes; 06-09-2010 at 01:42 PM..
Reason: No links to real estate sites allowed, per the Terms of Service
To your home work! Find out what the value of homes are in the area. I suggest you use Cyberhome,com to find the value (this site is more accurate than Zillow)
I have to challenge this assertion. Our current home was listed on a Friday. By Sunday we had 3 offers, one at full price ($524K). Since the house sold so quickly, and there were multiple offers we know that the value of the house is $524K. It appraised. I don't know what the final appraisal was as the buyers just told us it appraised as the contract was contingent on appraisal.
Cyberhomes.com lists the value of the house at $386K. The square footage on their site is listed at 2100 sf, the tax rolls list it at 3600 sf. Cyberhomes also had the wrong year built.
Zillow lists the Zestimate at $495 and the range as $421K – $530K. I find that low. Our house has a nice kitchen and nice pool, but the bathrooms all need updating. A house similar to mine with the bathrooms done would sell for more than $530K. Zillow seems to be inaccurate, but not as wildly inaccurate as Cyberhomes. At least Zillow has the right data for the house.
No you cannot. It's considered mortgage fraud. Read about arm's length transactions.
Do you have any links to the law for this? I find it strange that it would be illegal because she would really be buying the house from the bank. The bank will decide if they accept the offer. The willingless of the bank to accept a short sale is based on the sellers financial situation is and not who the buyers is.
Sorry, that's not correct. Who the buyer is is always important in mortgage transactions. There is a great deal of reading available out there if you're really interested.
There's a blog talking about it. I googled arm's length transaction short sale to get it. Add the word fraud to the search and you get a bunch more hits.
Short Sale Fraud Red Characteristics
Borrower owes more than the current value of the property and feigns financial hardship, discontinuing mortgage payments, and an accomplice of the borrower submits a low purchase offer. The lender grants a short sale, unaware that the short sale offer was rendered on behalf of the original borrower.
Sudden default, no workout discussions, and immediate offer at short sale price
Ambiguous or conflicting reasons for default
The mortgage delinquency is inconsistent with the borrower’s spending, savings and other credit patterns
Short sale offer is from a related party
Short sale offering price is less than current market
Cash-back at closing to the delinquent borrower, or other disbursements that have not been expressly approved by the servicer (sometimes disguised as “repairs” or other payouts)
Another great resource on various mortgage fraud schemes is from Freddie Mac. I don't believe it specifically addresses short sale fraud though. It's called "Discover Gold Through Quality" and can be read at freddiemac.com/dgtq. It's simple to read and gives a good overview.
My point is that rules are in place to prevent fraud. I'm giving you the reason why she can't do it. I didn't say she is definitely trying to commit fraud. Also it is important to the bank that the seller is trying to get the most money possible on the short sale. If the seller is selling to friends/family, they have motivation to do the opposite.
No you cannot. It's considered mortgage fraud. Read about arm's length transactions.
I understand about Arms Length transactions, it is a transaction among parties each of who acts in his or her own best interest. One to five years after a divorce, you are possibly correct. Also if they had the same last name and it was the same house both parties live in, there might be a comparison.
They have been divorced and separated for ten years. Have separate last names and it is a different house the Ms. has never lived in. Whats the connection?
Years ago when I was a loan officer - wrote a purchase through Countrywide for a similar type situation.
The buyer told me she was buying another house that her ex lived in previously. As a pre requirement had the borrower send me a copy of her divorce decree. I showed it to the underwriter, he said if it was over five to seven years not to worry about it.
Quote:
Originally Posted by VictorBurek
You can also check out eppraisal.com.
WoW - I feel rich - just checked out my house valve.......
Low: $508,200
High: $687,564
Low: $162,120
High: $295,290
Low: $184,239
High: $235,416
I wish I had an MLS listing for every state I am licensed in, but is is not practical. On a daily bases I check 5 to 20 homes a day in different states when I am talking to homeowners that are in default. Zillow is good for finding out tax and neighborhood information, I prefer Cyberhomes for the actual values.
Yes MommaB - if you are selling your house, you are looking for the highest price you can get. Maybe eppraisal is the site for you.
The current situation is she is buyer, looking for the lowest price.......
Last edited by Modification Specialist; 06-11-2010 at 12:47 PM..
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