it was my intention to help her submit the hardship letter etc and gather the required paperwork and thats it. I have never been part of the negotiaions in one of these so I am trying to research as best as possible but have advised her to consult an attorney. just looking for some opinions and if anyone has had experience with these types of negotiations. .
I didnt hear it directly but supposedly it was offered as a "settlement" she is not current on her payments and in foreclosure the 2nd would get nothing. so I can only assume that it was an effort by the 2nd to get something as oppsed to walking away with nothing.
I am attempting to help a friend go through a short sale. Home is located in Florida. The 2nd mortage has just offered her to settle for 5k on a 90k note.1. If the 2nd mortgage settles for 5k can you keep the house. 2. will the 2nd have any recourse at a later date?3. are there different settlement arrangements the bank may request i.e. allowing them recourse etc?
I would certainly email. tact goes out the window when youre trying to do whats best for your family. I just cant believe that with as many price reductions you have done that you still cant find a buyer. A glimmer of hope is that things have abrubtly turned around here. homes are getting multiple offers in days and going over asking price. every agent I talk to is saying how crazy it has been for the last few months. I can only suspect that it's because banks are slow to list REO's coupled with buyers wanting this 8k credit ( as silly as it is that 8k is bringing out so many new buyers) it;s creating a false sense of dwindling inventory. but at any rate who cares why it;s happening. I'm going to guess you will have a workable offer in 46 days. anyone else want to guess..... remember "Price is Right" rules. go over and you lose.
John, FRE ( Freddie Mac) and all the other banks alike seem to conducting most of their deals like this. You need to throw all the traditional "customary" procedures out the window. I have bid on many REO homes and have yet to see one counter me. They tend to look at the offers presented and choose a buyer. In the case of an REO the bank will often price the home well below market to generate interest. They will then accept offers for a certain period of time. ( I have seen anywhere from 3 days to 15 days) Understanding the motivation of the person selling the home on the banks behalf will help you get a better picture of whats going on. These sales are often conducted by an "asset manager" who's sole job is to move as many properties across their desk as possible each month. They care more about getting the home back because the deal doesnt close than getting top dollar for it. next time in order to make your offer more attractive you will want to shorten the time to close. Show proof of funds for escrow as well as loan pre-approval ( not pre qualification) to demonstrate that you are a viable buyer. I also recommend that you disregard the asking price and base your offer on what the home is worth and more importantly on what it's worth to you. Also do a price vs rent calculation to try and establish what an investor may pay for it.obviously you dont want to over pay for a home so figure all your numbers to the lower end. Dealing with banks and learning their game is not easy and you will likely lose a few homes before you get one. but in the end if you are diligent and informed you can pick up some real deals so hang in there.
niceguy.... I think that is the first time I have ever seen a burb spelled out and put in sentence format. YAY for you !the villages is it's own market and was in the top 20 for number of units produced in 2008 with over 2200 units and only off 7% in number of units from 2007 beating out names like MI homes, highland homes, mercedes homes, ashton woods homes etc. Link
interestingly enough Linda's post is the only one that contains good information.
"the realtor has been no help at all"That was your first mistake. You need to have an agent that knows how REOs are being sold in your area. I agree with many of the previous statements regarding banks pricing below market etc. The problem in some areas ( mine for example) is that banks are pricing the homes way below market and usually only allowing a small window for offers. this will be your first sign that the bank is looking to unload the house quickly. I have seen many cases that the bank doesnt take the highest offer but takes the cash offer that will close within the time frame they desire. Several banks like WFC and BAC will want you to be preapproved with them just to make an offer their properties. When you see a listing that is too good to be true.... it probably is unless you have cash. 6 months ago the short sales were the long shot that noone wanted to take and most agents saw them as a waste of time and wouldnt deal with them. Today this seems to be more the case with REO properties because it;s much like going to an auction where you cant hear the bids and have no idea what the auctioneer wants. The deals seem to be in Short sales because investors wont take the time to mess with them currently ( which I expect to change ) I cant stress to you enough the importance of finding a good agent that focuses on Short sales and foreclosures. If your not playing with cash my advice is1. to start looking at short sales and be ready to write several offers at the same time. 2. back up your offers to the seller with a letter that states you will hang in there for the long haul as you are familiar with the common hurdles that come along with them. The seller just wants it approved from the bank. they dont care about price. they just dont want to have to start all over if you change your mind half way through the process. 3. make sure you are preapproved and submit a letter with your offer.4. be prepared to be patient and wait. it's usually a slow process with no updates.
any updates Mck? keeping my fingers crossed.