Profile picture for BMFPitt

Short Sale w/ GMAC & Citi?

So I put an offer on a short sale on Saturday. I found out that the banks are GMAC and Citi. So I think that they should give me the house for free in order to beg forgiveness for their bailouts with my tax money. But since that's not likely, I was wondering if anyone had dealt with one or both of them before in short sales, and has an idea on turnaround time and likelihood of accepting a reasonable offer at about 70% of what the house sold for in 11/06.

  • November 25 2008 - US
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Answers (9)

BMFPitt

 

Both.

 

Turn around time on both should be about 3 1/2-4 months, IF the listing agent submits the complete workout package from the 1st submission and has constant followup with each lenders through the short sale process. 

 

It does not matter what the property sold for in '06, what matters is the current market value in current market conditions according to most comparable sales within last 3 months. Both lenders will order appraisals or BPO's.

 

Best of luck on your purchase.

  • November 25 2008
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Profile picture for From Gig Harbor

70% seems a little low.  I have yet to find a bank willing to take that kind of hit.  But, good luck.

  • November 25 2008
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Profile picture for projectmatt

Good Luck I got one in June for 68% of loan amount. Although it did need some work.

  • November 25 2008
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Profile picture for BMFPitt

I brought up the 70% number because I assume that they're carrying it at full value on their books, and they'd rather have a nonperforming loan on a depreciating asset than to admit the 30% loss.  But I'm hoping otherwise.

 

And hopefully in a lot less time than 3 months, because I gave them a deadline of the end of the year before I re-up on my lease.  After that they'll have to buy me out of it to close the deal.

  • November 25 2008
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BMF- speaking from experience- 70% might be a tad low, but not by much. Has anyone reappraised the property yet or done an up-to-date CMA?

  • November 25 2008
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BMFPitt

If the short sale price has not been approved by the lenders (that is if an offer has not preceeded yours and the short sale process been worked through the entire course), you will not hear by the end of this year.  The short sale process takes time, and your circumstance is compounded by 2 mortgages with 2 separate lenders.

If an offer has preceeded yours and been rejected or fallen through after a price has been approved, then you may be able to close before the end of the year, but at the approved price.

 

Dont count on them buying you out of anything.  They do not care if the deal falls through and a buyer is lost. That is, in the lenders opinions, no reason to escallate a transaction.

 

Sorry, but true.

 

Best of luck

  • November 25 2008
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Profile picture for 80smusicrox

With our short sale purchase, we did get our offer of 36% less (or 64% of) the seller's loan balance approved by the lender.  Only one lender and the it took 35 days from offer to bank approval.  But this was July 2008.

 

A lot depends on the property's individual situation...the house we bought short was a 2 year-long vacant flip/investment property that had been on the market for a little over TWO years.  The out-of-area sellers were unsuccessful selling this property at a wide range of asking prices...and unavoidably could no longer carry the $3400 a month payment (it was 100% financed including the closing costs!)  Sellers were months in default and facing foreclosure....and then we came along when the asking price was outrageously low.  The sellers bought a discounted (for 2006 anyway) fixer-upper and fixed it up (with another loan I'm sure)...and we got the house for 36% less than they paid with a complimentary whole interior renovation.  And 30% less than the 2008 appraisal.

 

 

  • November 25 2008
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If the heavens open and the transaction goes perfectly you're get it done in 4 months.  If you're not offering close to what they're into it for (within 10K) then you're likely wasting your time.  Keep in mind they will string you along and take months to come down in price.  Someone will likely come in and over pay and they'll forget to tell you.  Or even more typical they'll switch asset managers mid-way through and he'll be too lazy to read the file so he'll just tell you to start over again at full list price.  Good luck!!  As a rule of thumb if you don't have 6 months to wait don't both with short-sales. 

  • November 25 2008
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The turnaround time is much more reasonable if you have a contact at the bank.  We've noticed that thru doing short sales for years and working with thousands of files...having a relationship with someone really helps.  Either way short sale is a longer process and can sometime be tedious, but having someone on your side, helping negotiate the deal makes it a lot easier.
  • September 30 2009
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