Fizzle1979

Mortgage Short Sale

Recommended Posts

Question--

Would there be a reason why a short sale would involve 10k (or any amount) going to the buyer, aisde from possibly being held security deposits? There are a number of short sales going on in the rough part of north Jersey, and I suspect that the properties are multi-units that are going to be used for subsidized housing.

Was just curious if anyone would have an idea.

Share this post


Link to post
Share on other sites
Question--

Would there be a reason why a short sale would involve 10k (or any amount) going to the buyer, aisde from possibly being held security deposits? There are a number of short sales going on in the rough part of north Jersey, and I suspect that the properties are multi-units that are going to be used for subsidized housing.

Was just curious if anyone would have an idea.

That is very strange. Here the lenders/servicers/loss mitigators will not allow anything to go to the buyers. No portion even can be applied to buyers closing costs or pre-paids. Seller walks out with zero and sometimes has to bring money to close. Buyer has to pay all of their own costs. But, we are in Florida, different market - different rules.

Share this post


Link to post
Share on other sites
That is very strange. Here the lenders/servicers/loss mitigators will not allow anything to go to the buyers. No portion even can be applied to buyers closing costs or pre-paids. Seller walks out with zero and sometimes has to bring money to close. Buyer has to pay all of their own costs. But, we are in Florida, different market - different rules.

I have to get more info from my friend then...he is trying to get me to be an "investor"

I do see A LOT of short sale properties on craigslist (then again, I think I see a lot of everything on craigslist)....

"If it sounds too good to be true....", I suppose.

Share this post


Link to post
Share on other sites
I have to get more info from my friend then...he is trying to get me to be an "investor"

I do see A LOT of short sale properties on craigslist (then again, I think I see a lot of everything on craigslist)....

"If it sounds too good to be true....", I suppose.

I think a lot of short sales are people trying to get out from under their rapidly depreciating house without informing the bank. They secure an offer from the buyer first, and then go to the bank with that in hand and try to force them to take it. It's no wonder why banks are blowing them off. And it's pretty crappy to be wasting buyer's time like that.

Share this post


Link to post
Share on other sites
I think a lot of short sales are people trying to get out from under their rapidly depreciating house without informing the bank. They secure an offer from the buyer first, and then go to the bank with that in hand and try to force them to take it. It's no wonder why banks are blowing them off. And it's pretty crappy to be wasting buyer's time like that.

In our market some of that is going on, but I have to tell you that in most instances the buyer is serious - putting down 20% to 100% cash; the seller will accept an offer within the current market values (using sold comps within the last 90 days) and then the loss mitigator will not even consider the offer. Some of the lenders/servicers do not even counter offer with anything other than: 'It's not high enough, bring in another offer'. We are not talking about low ball offers either. This blow off from the bank happens after dragging out the response 90 to 120 days. xSteaminx

Share this post


Link to post
Share on other sites

An update on my situation... The seller opted to do a deed in lieu of foreclosure instead of a short sale. So after a roller coaster ride that lasted almost four weeks (as recently as last Friday I was told it "was an almost done deal"), I now have to start from square one and pick out some new listings to view. I want to punch someone.

Share this post


Link to post
Share on other sites

It would not hurt to talk with the lender. They might be interested in getting a non producing loan off of their books. It is so incredibly expensive for lenders when they foreclose, they might be very interested.

Charles

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.