Short Sale Proposal - But Now It's Vacant
I turned in a ss proposal 2 weeks ago. The person has since vacated the property - it is however still listed w/ an agent. Will the bank still go through the short sale process and make me an offer if the property is vacant? Thanks!!
Hi csilvestri,
If it is an FHA loan, a vacant home can disqualify a SS. If it is indeed an FHA loan that you are trying to short, I would just turn on my select hearing . . .if they dont ask, I dont tell!
If it is any other type of loan, a vacant home can work to your advantage in many cases! What are the details on this property?
BAMZ
It is a conventional loan. But on my proposal to loss mitigation I did tell them the property would soon be vacated by the seller. I hoped that would help my case but someone recently told me that is not the case.
You must have the Seller's cooperation throughout this process. If they aren't willing to execute a contract, provide all required documentation, and participate in a closing... then you'll have to wait until it's an REO.
Hopefully the listing broker can act as a liaison.[ Edited by TheShortSalePro on Date 12/17/2003 ]
The seller is very cooperative. She doesn't even want any money. Not one cent.
Can you please elaborate on how I will need to prepare her to cooperate with both me and the lender?
Has the Seller entered into a contract with you? Has the short sale request for consideration been proffered to the mortgagee? Has the application been completed? Has the listing broker been apprised that a short sale is needed? Will the broker 'join your team' and help facilitate the process/closing?
Yes to all - except for working with the listing agent. Is this something that I should be doing?
You should follow up with the mortgagee's representative to whom you submitted the Proposal. The pretext could be that you have additional information, or simply to confirm it's receipt (even though you probably sent it via FedEx). Stay on top of this.
Once, I had a situation that involved a huge mortgage debt... more than $1,000,000 if I can recall. The short offer was about 60% of that and I was close to an approval, or I had a verbal approval, and as I sat and waited for the written approval, the mortgagee sold the loan's servicing rights to another company.
I had to start from scratch with the new lender. So, stay in contact without becoming a pest.
Quote:
On 2003-12-17 18:48, BAMZ wrote:
Hi csilvestri,
If it is an FHA loan, a vacant home can disqualify a SS.
Aaughh! I was working an FHA SS and everybody was cooperating - the seller provided ample documentation, and I was actually talking to a live person with the mortgage company (Countrywide).
I met with the seller today to finalize the SS package that the bank had provided, she sent the package via overnight shipping, and on the way back she stopped by and noticed that either yesterday or this morning they had removed the locks and bolted all of the doors shut on the property!!! This was a 'pretty house' with lots of potential profit, too!
She had moved out because she was afraid they would seize the house with all of her belongings inside. By her doing that, they have now declared it an "abandoned property" even though she was still going by and entering the house every day or two.
Is there anything left in this deal, or is it yet another 'lesson learned' at this point? Any expert insight is appreciated.
It's likely that the loss mit people do not know the house has been vacated. There is often a disconnect between the attorney and the bank. Just proceed--don't ask, don't tell!
storm, they can try to declare it abandoned but the homeowner can stop it easily. Did they send the home owner any notice? Was there a affidavit filed at the Register of Deeds? Just because the property is vacant doesn't necessarliy mean it is abandoned. The bank does have the right to secure the property and winterize it. Doesn't mean your SS is done.
Tom[ Edited by tbelknap on Date 12/24/2003 ]