Why Are Short Sales So Hard?
I am in the process or should i say WAS in the process of a short-sale with Mortgage Lenders Network and they are being extremly difficult.
This has been going on for 4 months and i have submitted everything i needed. Here are the numbers. The original loan amount was 125k i offered them 128k the payoff is around 147k and the BPO came in at 145k. Now they will not accept my offer and tell me it is too low it needs to be 135k. i will not go there. I called them today and they say that he is going to get the owners of the property to sell it. How can they sell it if they already have a contract with me?? Also this will not happen because i am a middle man with the two owners and they both have restraining orders against each other. one wants to foreclose the other doesnt. the only thing they want is for me to do somehting with it.
What should i do?
1. record my purchase and sale agreement?
2. Put property in a trust real quick and threaten the bank with it saying that i already have title? (which i will, just not recorded)...i heard this is a good way to scare them and get your offers accepted. (Jeff Kaller) i will only record the warrenty deed to trust.
Any help would really be great here.
thanks guys, Ryan
The Bank is only looking at dollars and cents. They think it is worth $145,000. You have to point out why it is not worth that. For example include how much the bank would have to pay to get $145,000 for it not to mention commission to resell and holding costs until it does sell. They already figured it was worth it to discount $10,000 you have to show them why it is worth it to short even more.
does the purchase price need to be 135k, or their net needs to be 135k? Will they pay for a 6% realtor commission? If so you have your 128.
their net needs to be 135..they are out of their mind..
can anybody answer my questions about the trust?
Anybody think i should threaten this with this Trust??
Telling the mortgagee that you have title is akin to shooting yourself in the foot.... as far as preforeclosure shorts are concerned.
so you are saying dont so it SSP?
Okay, i was just thinking this because Jeff Kaller says he does it all the time and it scares them and will usually make them accept the short-sale. You wouldnt agree with this? They ar beings really difficult and its to the point to where they will have to accept my propsal or they will foreclose. and from what i know about the owners they are going to foreclose. Its crazy to me that the lender would rather foreclose than accept my offer whcih is actualy more than the original loan amount
"You wouldnt agree with this?"
No, I would not. The mistake many people make, is that they think the art of preforeclosure short sale acquisition is a cookie cutter/boilerplate process. It is not.
I have never threatened the morgage company, and would not suggest it. But your deal is already dead so try it and report back how it worked.
Of course, you had better change your name the next time you have to work with that company.
Brenda
thanks Brenda but i wont be working with that company ever again. Its not worth it