Looking For Resources
Can any of the more experienced Short Salers give some books or courses that they'd seen that you would offer as a suggestion for reading by a newbie?
I'm just getting into REI and am looking at this aspect as a possible avenue to aim towards, but need more information.
I'm looking for any good references that really get to the nuts and bolts, the pros and cons of Short Sales. Do these exist?
Thanks in advance.
Start by reading the articles here. Any of the fee-based subscriptions here at TCI beginning with All Star will give you full access+search to the article archives. Then simply search the articles using the term short sale.
Also, click on "Products & Services", then click on "Shop by Author", then click on "The ShortSalePro". You'll find a good course on short sales there. If you order the Primer through TCI, you'll get an automatic and free one-year subscription to TCI (either AllStar or SuperStar).
Congrats and welcome to this site. Feel free to read everything you can as that is the best advise I have.
If you do have a specific question you can't seem to get answered, do post it and we'll fill in the blanks.
GOOD LUCK
Sometimes, when an appraisal confirms a fair market value substantially less than the loan amount... a red flag will go up, and the lender will want to know why.
They may have purchased the mortgage from another lender... and may want to 'send it back' or establish the basis for a claim. They'll want to know if the origination appraiser was crooked, and/or if the property were involved in a flipping scheme. That takes time.
They may also be packaging the loan for resale to another lender, wishing to rid themselves of the hot potato.
[addsig]
Thats not the case here. I originated the loan and the orig appraiser was perhaps overly optimistic as to value. But this mtg company hold loans as portfolio(no secondary involved). Their second appraisal came in more in line with actual values - cause property does need work. Anyway best offer was from a rehabber at the same price as the actual value. Am retiring to cabin on lake. Have tried in vain to facilitate a short sale to preclude a foreclosure from record...but, as stated, Ameriquest does not seem willing to be pragmatic. So, i suppose I will take a walk on mtg and let them realize they made a bad judgement. What else can I do?[ Edited by buddy on Date 07/17/2004 ]
Buddy,
I suspect that Ameriquest is not responding to your offer because you originated the loan. The circumstances here look very similar to a bank fraud scam which lots of lenders have been experiencing of late. I'm not saying you did anything wrong but from the banks point of view your actions are suspiciously close to the circumstances of the fraud deals.
Are you sure that you are talking to the right people at Ameriquest? I have had short sells turned down or turn weird for various reasons, but I have never had a lender not tell me why.
Possibly your short sell does not seem at arms length. I have had a lender tell me that they would not short sell because the buyer did not appear to be at arms length with the owner.
What department are you communicating? What is the exact name of the department and the name and title of your SS request representative. BTW - I have never sent letters, only phone calls and FAXes. And answer the SS Pros questions. We need more info because you SS experience is not the norm.
Brenda
I am always amazed when I see property appraisals in my loan closer position. Very generally speaking, properties where they are getting great rates with few costs appraise on the low side. Properties with not so great rates and huge closing costs (and Ameriquest is right at the top here) come in with much higher appraised values. Makes one wonder ...
Over the years, I've worked closely with the mortgage bankers association, states police, and the FBI investigating untoward realty and financial transactions, testifying (for the Plaintiff) in Federal Courts about patterns and practices.
A drop from $80,000 to $35,000 in value certainly raises some questions. As stated earlier, they may be looking at the origination appraiser for complicity to fraud.
I've had a situation such that property appraisals were inflated to 250% of actual value for the purpose of defrauding the mortgagee. The seller, broker, and appraiser pocketed the cash.
When the Purchaser realized the mistake, he sought short sale approval.
In a nutshell, the mortgagees didn't respond to the short sale offers but instead called in the FBI...
My recommendation would be to document your attempts to resolve this matter, then consider bankruptcy....to wipe the slate clean, and to put this behind you.
[addsig]
I'm confused, you wonder why the lender would prefer to go thru foreclosure proceedings just to end up with a hard to sell property? as far as the bank is concerned you are already on the hook for the mortgage, regardless of the value, the bank sees that as debt you owe them. Yes, it would be good for them to short sell the property to you so they wouldn't have to book the property, but why should they short sell it to the owner who defaulted the property in the first place. The fact that you are defaulted, not only on the mortgage, but also on taxes, shows the lender that you are not a responsible borrower. So why do you think they would spend any effort structuring a short sale to a borrower whom is currently defaulted? As far as the lender is conerned, they would probably rather structure a short sale for someone other than the defaulted parties. That way they are not concerned with whether or not the property will default again. believe me if they wanted to get the property off their books, the only way to do that is to make sure the borrower is responsible enough to make the mortgage payments on time.
Regardless of how you feel about the bank, the appraisers and all others in the deal, you signed the documents at the closing table. It is now your responsibility to pay the mortagage or sell the property.
Not making the payments is not a good idea, it will only help convince them that there was some kind of fraud on your part. Non payment reports to the credit bureau making it difficult to obtain new financing. Foreclosure stays with you for a while, I would avoid it at all costs!!!
Good Luck,
Erik
p.s. I have a loan with Fairbanks, I could tell you volumes of how screwed up their servicing department is.
Somewhere along the line, I must have done a bad job of communicating. Yes, I am responsible for loan... ..... but I have become disabled(heart,back and brain tumor) and must now try to survive on about $600 mo social security. That is far short of money to live on ,much less pay the mortgage payments. Will be moving to little cabin in e texas and wait out the time I have left. I have tried for over six months to find someone to buy this house "as is" and assume balance on loan. No takers. Finally, only one investor agreed to offer $35K. I am trying to arrange the short sale for HIM....and to keep a foreclosure off my record. Of course, at the point, my credit is already shot. So, holding my feet to the fire is not an option for the lender. Taking a cash pay off from this investor is their best course of action. And, It is the best price this house will bring in present state of disrepair. Now you can advise....with all the facts known.
[ Edited by buddy on Date 08/07/2004 ]
[ Edited by buddy on Date 08/07/2004 ]
[ Edited by buddy on Date 08/07/2004 ][ Edited by buddy on Date 08/07/2004 ]
Buddy,
Pleased to reply to your post. If you have an investor who is willing to work with you and the bank that is good news. You should have the investor request the SS package and deal with them direct. I have some info and other things that might be helpful to you. If there's anything I can do to be of assistance to you, please feel free to ask. You can PM or email me if you like.
I think that you will find that when you are out of the picture that Ameriquest will be more willing to accept the short. My guess is that they think you will profit in some way, and with as greedy as they are, they just won;t accept the loss you have arranged for them. THey probably think it is worth taking the REO hit and reselling.
GOod luck to you.
Well, again, the orig appraisal and the second appraisal was arranged by the mtg company.
That second appraisal was pretty accurate to the true value. As stated, it was the same figure as the investor offered. So, why goes through foreclosure costs and REO costs just to try and obtain a price that is higher than the market will bring? That is not being very realistic.