short sale: A 3 Part Strategy for 2 Lien Short Sales
- 04/30/09 02:19 AM
Note to Self... Multiple lien short sale transactions have become increasingly difficult to close over the past few months. As a result, our company has stopped accepting new cases until conditions improve. The majority of our listing volume was tied up in 2 lien short sale properties when the first portion of the bailout money was distributed. Following the announcement of the Homeowner Affordability & Stability Program (HASP) and the earliest infusion of a few hundred Billion dollars, the banks began to behave irrationally. It just wasn't making any sense. Our success ratio for closing two lien transactions has plummeted in … (1 comments)
A reporter with the New York Times is looking for people who received a loan modification but end up back in default because the new rate wasn't workable for them either. Maybe it was higher than the original; maybe it ballooned. Anybody seeing clients like that? trying to speak with people early next week. Thanks.
I will post a link to this blog in the other one. If you have a story they may be interested in, please reply to this post.
I fought this battle … (0 comments)
short sale: 2nd Lien Charge Offs - Update
- 02/05/09 06:11 AM
In a recent post, I shared about my experience with a 2nd lien holder (WAMU) charging off an account while in the middle of negotiating a short sale. Once I found out about this, I was transferred out of loss mitigation and into the charge off department. There I was told that they would require substantially more money than what I had already been told was needed by the loss mitigation department. I decided to give it a little time and then called back through the normal channels about a week later. I did not go to the person holding the … (0 comments)
I have been working a short sale with Aurora as the 1st lien and WAMU as the 2nd. After much discussion and effort, I was told by Aurora that the minimum net they would accept on this particular home was $158,000. They were offering only $1,000 to the 2nd. After talking to the WAMU about the $1,000, they declined and stated that if I would get them $2,000, they would take it. I was told that their guidelines permitted $2,000 for a 2nd position lien on notes between $40,000 and $50,000. So this didn't appear to be … (7 comments)
short sale: FHA - Out with the old, in with the new... Pre-Foreclosure Short Sale Guidelines
- 01/19/09 08:24 PM
As you may know, I recently posted about the FHA Short Sale Guidelines that were changed on 12/24/2008. I have two points to discuss today. The gap and the direction. The GapThe old FHA short sale guidelines permitted a sale which would net the lender at least 82% of the "as is" market value determined by an FHA appraisal. The new guidelines have a tiered scale beginning at 88% and ending at 84%. If the home is sold within the first 30 days of the approval to participate in the program, the offer must net the seller's lender at least 88% … (26 comments)
short sale: What's so complicated about the short sale business anyway?
- 01/08/09 11:04 AM
I am attempting to phase myself out of the primary role for our company's short sale transactions so that I can concentrate on other areas of our business that have been neglected like marketing campaigns, structural organization, phone systems, client communications, the books, etc.. I have one of the best office managers that a person could hope for. She has participated in our short sales over the past couple of months and is ready to take them on full time. I know her well enough to be certain that she is fully capable of it.Short sales are not something that can … (26 comments)
short sale: Changes to the FHA Short Sale Process
- 01/08/09 12:09 AM
Essentially, HUD (our federal government) has determined that their way of helping the homeowner is to dramatically reduce the opportunity for FHA borrowers to successfully complete a short sale. The 82% net to lender rule that has always been in place is out the window now. Is this what they are doing with our $750 billion dollars? There are several points to these new guidelines that should be thoroughly considered.
For one, I am not at all thrilled about the new “required” language which essentially nullifies our listing agreement. I believe this is something that the mortgage companies must … (21 comments)
Note to Self... Multiple lien short sale transactions have become increasingly difficult to close over the past few months. As a result, our company has stopped accepting new cases until conditions improve. The majority of our listing volume was tied up in 2 lien short sale properties when the first portion of the bailout money was distributed. Following the announcement of the Homeowner Affordability & Stability Program (HASP) and the earliest infusion of a few hundred Billion dollars, the banks began to behave irrationally. It just wasn't making any sense. Our success ratio for closing two lien transactions has plummeted in … (1 comments)
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