Short Sale Terminology?
I am currently working a short sale with SPS. I called to follow up on my offer and they said that do the BPO report they had to request an internal varience. What does this mean? Is it a good or bad thing? Any insight would be appreciated.
I apologize for the poor typing in the preceeding question. What I meant to say was due to the results of the BPO they would have to request an internal varience. What does this mean?
Thanks for the clarification SSP!!! Hopefully it will be a good thing.
I was wondering the same thing -if the comps are 265-280 and this home is in good shape the sale would seem to easily cover the first and second and still have plent y of room for a rehaber unless this house is trashed
. Just my 2cents
Blessings,
Bri
"Just give him the 25k upon a successful short sell, or when the house sells. Nobody is going to jail over this. "
I disagree with this statement that is still mortgage fraud, the example is as follows......homeowner having hard time making payments, buyer steps in for short sale from bank...bank made mind for shortsale over information buyer could not make payments. You give the buyer ANYTHING not disclosed in contract in the way of financial gain and you may have committed fraud, the seller sure has for failing to disclose to bank he was making 25000 . It is a felony and there are MANY people going to jail for it. It is why PREDATORY LENDING is on the SKYLINE now. In the real estate world PREDATORY LENDING is Bigtime investigations going on and Equity skimming. There are legal ways to do things but not telling the bank you are gong to receive cash from the sale is illegal!!!
You can put one hundred exclamation points after your sentence - but it still does not change the fact that nobody has gone to jail by giving the home owner money on a short sell.
But I think the original poster is going to realize that if there is enough in the deal to give the home owner 25k, the bank will probably not short. In my experience, giving the home owner 25k, me making 100k, and the bank taking a short do not compute.
Brenda
http://www.irs.gov/newsroom/article/0,,id=118224,00.html
The article is interesting.
Realize in a short sell you are paying off a loan, not securing a new loan. I have never read of any fraud related to paying off a loan.
Brenda
Question, how many months is the homeowner behind?
I believe 7 mths on the first and 5 on the second
If the loan is a non-recourse loan, then the bank cannot go after the owner for any shortfalls at a foreclosure sale. I believe also that it may depend on the type of foreclosure pursued. I think here in CA the lender must hold a judicial foreclosure in order to exercise recourse. The disadvantage to a lender is higher costs and a redemption period which discourages bidders.
The lender requires as much from the borrower as he can legally get before he considers the short sale. Remember the NEW BANKRUPTCY LAWS are in effect now and some things have changed in regards to what a borrower will have to repay a creditor and that will affect any lenders decision. For me and quite possibly most of us the New Bankruptcy laws have not been fully understood/ investigated as to the impact it will have on a lender or borrower. They were changed to give creditors a better deal.
Here is some research info off google on a similar subject.
http://www.iraplus.com/iraplus/ira-insights/issues/2005-10/Self_Direction_Asset_Protection.sqrl
Foreclosing lenders asked to evaluate a short sale proposal are looking for assets that can be converted to cash... CDs, stocks, bonds, luxury cars, boats, second homes, etc.