This sounds like a FHA loan, but maybe not. CW uses HUD guidelines for their shorts.
82% is what they NET of the AS-IS value. Everything hinges on the BPO or Appraisal. You need to influence the appraiser as best you can to give you the lowest value they can. After all closing costs, HUD wants 82% of that value.
ALL HUD shorts must be listed with a real estate agent. It is in the rules. So, if you are not an agent, get one that will do the listing for you, then put your bid in immediately. They won’t order the appraisal until there is an offer.
I’m in the midst of my first countrywide short sale. This looks SOOOOO fun.
The packet was about 20 pages thick. House has to be listed! So I have to list the property before I can work the short sale.
Also, they told me up from that the bank will only accept an offer that comes within 82% of the appraised value!!!
So…if I’m buying 70%-Repairs (in Detroit…should really be 65%-Repairs) and it worth $115k fixed and there are $11 in repairs that means we need to buy at $69…but wait…seller needs at least $4000 to move and get into the next place so we need to buy at $65.
$65k is 82% of what? Yup…$80,000. If I do all the work, I have to have an appraisal that comes in at $80k to even work.
Has anyone done a Countrywide deal lately, and if so, what things did you employ to get the deal done?
I am trying to purchase a property that only at the end of escrow we found out the seller was behind 3 months in payments. Then the “short sale” situation came up and we havent heard anything. I’m trying to contact Countrywide to find out if they’re going to do the short sale and can’t find out how to get thru to them. Can you help me with any info? My cell: 951-757-6429. Thanks.
The seller might ‘need’ $4K but the lender will not allow such a ‘payment’ if they approve the sale. You might be asked to sign something indicating that you are not paying the seller. The seller can not directly benefit from the sale (and from the lender’s loss).
Why agree to pay them anything? I know they want it, they need it, etc. At the same time if you and the lender do not agree to make the deal happen they get nothing. Pressure them to reconsider what they ‘need’ vs. what they want.
A legal way to not pay them for their house and get them some cash for a move is to buy personal property from them. They are allows to sell stuff they own that is unrelated to the short sale real estate.