Short Sale ?? in WB (newb ?'s)

G

glamis_lvr_IHB

New member
wondering about a specific property in WB (not sure if i can list the address here) that's a short-sale. i'm wondering why it's not sold yet. i moved in WB Place Nov-Dec of 08 and since then, i've seen that small orange for sale sign. i'm a newb buyer so please don't be too harsh on me! i've search on here on short sales, REO, foreclosures.. and it seems most of the users here in this forum don't really recommend those types of sales? maybe i'm wrong... (so confusing). are the sellers really trying to get wat they actually paid for? thanks in advance!
 
Since you've searched this site....you are right about IHBer's feeling "short sales" not being worth the effort. Let me see if I can summarize the reasons:



Very slow bank response times - weeks to months



The bank/mortgage holder may not have any realistic idea of the value of the home



Uncooperative occupants of the property - they may not let you in to see the home



The whole "short sale" may only be a ploy to delay foreclosure, so the occupants or home debtors aren't really interested in making a sale.



The property will be cheaper in the future, when the foreclosure is done.



The property will be cheaper in the future, as the market continues to drop.



I am sure there are more, but those seem to be the major reasons IHBer's give to avoid short sales.
 
centralcoast...

hey thanks for the quick reply! this clears up alot regarding short sales. one more question... so when the listing says "short-sale. must close escrow in 30 days" is this another sales tactic?
 
Go to any Redfin Short Sale listing and click on the box in the right corner that tells you about short sales and why Redfin won't waste their time with them. The majority end up in foreclosure anyway. Don't waste your time either.
 
I tried that whole "short sale" thing in April. The agent said she saw the property going for around $670k, and since I loved it I made an offer of $685k to make sure mine was the highest. She said there was more than 20 other offers, but mine was one of the best. She was really a slimey realtard. She put me off saying "Things look good!" the entire time.



Then she calls and gives me some song and dance about how the second mortgage on the property is not signing off, and would I lie and say I am taking an FHA loan so they can use the closing costs money to pay off the second mortgage company. I was very confused. And in the end, she said the owner took another offer. It was all such a scam!



Never again will I waste my time on that bull.
 
It helps a lot to have an agent that does a large volume of REO sales and short sales. The loan servicers will approve more deals for agents they are familiar/ friendly with. This tipit of information came to me from loss mitigation employees at Indy Mac, BoA, US Bank, and Citi. The agents with connections should be able to get the short sale approved in 4-8 weeks or be able to tell you if the short sale will be denied. I know of one group in south OC that has quite a few of Countrywide/BoA and Indy MAC properties funneled through them. You can PM me you want the name. I know of this particular group because a friend of mine that is the Director of Loss Mitigation (dept that approves short sales) at a major servicer told me that one of their agents was very skilled in talking her into approving short sales. You can also find the agents with the connections by looking at the lender REO property sites. Look for a brokerage or agent that gets a lot of listing from the lender. I also recommend researching agents that have a large % of short sales listing that are getting sold in less than 2 months.
 
Not all short sales are created equally. The most difficult short sales are the ones that have two or more different lenders (i.e. a first mortgage along with a second and/or third mortgage). The chances of the second and third lenders approving a short sale when they get nothing is very, very small. But your chances do increase when you are only dealing with one lender (whether there is only a first mortgage or a first and a second mortgage). There are agents out there that have established good working relationships with certain lenders that also increase the likelihood of the short sale getting done.
 
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