Equity One - Moratorium On SS
My contact at Equity One Loss Mit says there is a moratorium on SS until about November. He claims that Equity One will only entertain full payoff offers until then.
Does this sound at all suspicious to anyone else but me?
It's entirely possible... could be a change in philosophy, a change in managers, or just a lie... the only way to know for certain is to submit. The decision to entertain a short sale isn't generally made by the mortggage loan servicer... but the Investor who owns the mortgage.
Sounds kind of fishy, you should probably dig in a bit more. Who did you speak with? Try calling back tomorrow and asking for another loss mitigations rep. What type of loan does the homeowner have? Give us a little more information so we can better assist you.
We got the same thing over a month ago and sent in a cd with pictures of a rehab from HE__. We sent it to a "decision maker" manager and he called us up and pretty much said what part of NO did you miss. I hadn't heard of the November "deadline" though... probably a fiscal year books thing. I do know in our case November was mentioned because that is when they are going to "move on the foreclosure" and all... and as every book in the REI says... the offer you make today... may make a lot more sense to someone in a few months of sitting on a non-productive property.
In the long run - I know the place we're looking at isn't going anywhere... unless of course the transients burn it down. Way too much damage and repair for anyone but a "stubborn rehabber" like me to even want to take a look at it and see the potential under the debris.
How does your post relate to it's title?
Sorry...I guess I was a little ahead of myself. Should I take his word that I don't have to do a SS? He is either the 3rd or 4th person I spoke with. The other 2 or 3 said that I did need to SS. Have you ever heard of just offering the home owner to buy it, even though it is going up for auction on the 19th? What would you offer on this type of house? Obviously, we would like to get it for a great price because of all the repairs it needs. I would just think that if it goes to auction GMAC would get way more than what we are willing to pay because people won't actually be able to go inside. Like I said in previous posts, this is the first time we have had to do this. Thanks.
Thanks for the reply...I know I sound really stupid to this whole thing, I did read the article (plus many, many others). Your advise is very valuable to me...thanks. He owes approximately $130,000. GMAC did not give an exact amount, just that it was in the $130,000 area. Would an offer of $85,000-95,000 be crazy? Thanks for allyour help and advice again.
Your answer will rest in the appraisal of the property. If the unchallenged and confirmed, as-is value of the property is $130,000, the mortgagee won't give too much consideration to your Offer.
As in 99% of all short sale scenarios, your job will be to scrutinize the appraisal for errors... including omissions and shed doubt on it;s accuracy.
In addition to the boilerplate application required by the mortgagee, your supplementive and supportive Proposal should be fact based, and compelling.
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I am the one that had the appraisal done (big waste of money!) but GMAC said if I could get it done that would move the sale along. The appraisal mainly took in account square footage. I have approximately 60 "bad" pictures I would like to send to GMAC with our offer. We had an inspection done and came up with almost $30,000 worth or repairs. Can we submit this as well?
Perhaps it would not have been a waste of money had the appraiser been fully informed as to it;s purpose. Appraisals have different purposes for different results.
If you told him you were going for a bank loan, his appraised valuation would probably be higher than if you were asking for a 'fire sale' value.
What most folks don't seem to grasp is that the 'short sale secret' is to carefully prequalify the potential acquisition for short sale feasibility, and, to control/influence the mortgagees' perception of value.
It might not be to late. If interested, I might be able to transform and incorporate the appraisal and photographs into a compelling proposal.
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Casale,
To save your deal, I would consider TheShortSalePro's offer. You focused on your acquisition, but said nothing about your exit. If you intend to rehab and sell, then you cannot pay more than about 60K if the ARV is also at 130K, so your starting point must be below that number. If the ARV is higher, then you can buy higher, but I would still offer less than 60K as my starting point. Most short sales for non insured mortgages will settle somewhere between 40% -60% of the balance. If you aren't embarassed to make the offer, it is too high.
You need to develop a SS package that includes all of your documentation including pictures, and compelling reasons and documentation as to the homeowners hardship.
Also, in the future, if you get a BPO instead of an appraisal, your costs will be significantly lower.
Just my two cents worth..
My Offer is rescinded.... this is probably too complicated a short sale scenario to be worth their while due to Homeowner's bankruptcy. (I learned this in a post in foreclosure forum). In my experience, BNK muddles the waters, and requires more attention to detail than a routine short.
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Thanks for the advise...I did post that he filed bankruptcy in an earlier post...I just thought (or assumed) that you knew that. So, your advise would be to just walk away, even if I can get this house for a pretty good price? Or, should I continue to try. I stated earlier that I am definately not a pro in this and that I this is for us to live in.
Thanks