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Lenders approving short sales

By Janil Peguero

Real Estate Agent with RE/MAX Powerpro

June 12, 2008 05:26 PM

Hello All! I just want to inform you that my sellers short payoff was finally approved today after two months of negotiating with Chase. This was really an unusual case. Hard to believe, but it was an investment property that the seller had never sent a mortgage payment. The seller had purchased the property a year ago and due to her unfortunate reasons & financial hardship, was never able to make a payment. I really thought that the lender would never get to approve this payoff due to nonpayment within the first few months of the loan, but I guess knowing how to negotiate made a better and bigger difference.

I just thought that this piece of information would help others whom might be facing a similar situation.

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Tony Bolodar

NEXA Mortgage - Plano, TX

Residential Mortgage Loan Originator, #1320876

If the deal makes more financial sense to the lender they will take it. What has to be the primary target is to show the lender that your short sale is better than allowing the home to sit vacant for an extended period of time.

One bad news of short sales is that they can bring the overall price of the area down. Whether anyone wants to believe it or not, foreclosures will eat up equity in surrounding homes too.

Jun 12, 2008 05:44 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Congratulations on getting this short sale done. I agree with Tony's comment.

Jun 12, 2008 05:47 PM

Anonymous

Janil Peguero

I am this close to getting an approval, but the only way I can close on the deal is if the seller accepts that someday later on she can possibly get a deficiency judgment. Yet the seller thinks that if she continues with a foreclose, she would not get a deficiency judgment. To my understanding, if the property goes to foreclosure, and then gets sold as an REO or auction, the difference would be subject to a deficiency judgment. The property I am getting close to approval is an investment property. My client is petrified that her primary home , which has homestead, would be put a lien against. Has anybody been in a situation similar to this?

Jun 17, 2008 03:14 PM

Tony Bolodar

NEXA Mortgage - Plano, TX

Residential Mortgage Loan Originator, #1320876

Yes, if it goes into f/c she more than likely will have a deficiency judgement. And, if she causes them the trouble to go through all of that, they will more than likely execute on that judgement.

The seller needs to know the term behind "someday later on". When and how long is this going to be? Plus, doing the short sale, she knows what it would be. By going to F/C you never know what it will bring at auction. But if I were the seller, I would agree to it. Then offer the lender $1000 for that option. They can take that or get nothing in a bankruptcy.

Jun 18, 2008 03:05 AM

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