need help with short sale situation - Posted by rm

import · April 17, 2003, 3:56pm

Posted by Joe on April 21, 2003 at 14:47:22:

Any luck going up the chain of command on this short-sale?

import · April 17, 2003, 3:56pm

Posted by rm on April 17, 2003 at 15:56:21:

I have a short that I got a call on at the last minute.

Sale date is the 24th.

I’ve got a buy/sell, hardship letter, the whole nine yards submitted to the bank.

It’s Ohio Savings Bank, and FNMA and MGIC have an interest in the property.

Owner submitted her pay stubs and financial info to the bank- we were just told that we needed this yesterday.

The department head left for vacation today, won’t be back until Thursday, which is the date of the sale.

The contact person told me today that they will NOT stop the sale.

And it doesn’t look like they could POSSIBLY get everything done and get us an agreement before next Thursday, what with their due diligence, etc.

It doesn’t make sense to buy at auction or redeem, because the balance owed is within 3-5k of retail.

So, what’s our best option here?

Hang in there, let the sale go, and pray that they are willing to deal?

File the BK and hope that they’ll still talk with us?

Thanks for your help.

import · April 17, 2003, 9:41pm

Re: need help with short sale situation - Posted by MoniqueUSA

Posted by MoniqueUSA on April 17, 2003 at 21:41:56:

Ask if they will postpone the sale AND honor the short sale payoff if you agree to reinstate before the 24th.
We just had a lender agree to do this 2 weeks ago. Clearly, everything should be in writing.

MoniqueUSA

import · April 17, 2003, 5:58pm

Re: need help with short sale situation - Posted by Joe

Posted by Joe on April 17, 2003 at 17:58:42:

“The department head left for vacation today, won’t be back until Thursday, which is the date of the sale. The contact person told me today that they will NOT stop the sale.”

You must speak to the person in charge. When someone leaves for vacation, they put in charge A) their own boss, B) one of their own subordinates, or C) another peer manager. Work your way up the chain until you get to an authority who sees things your way. Aim for a postponement, if that’s all you can get now, until the real boss returns.

Otherwise you’re SOL.

import · April 17, 2003, 5:37pm

Re: need help with short sale situation - Posted by Curt in sc

Posted by Curt in sc on April 17, 2003 at 17:37:57:

Since there’s no real equity on the table here I’d just call the bank using your nicest voice (you never know when you’ll need them again) and let them know the h/o will be filing bk on the 23rd if they don’t deal with you. I’d also ask for the mortgage company to put it in writing, don’t just take their word for it. Chances are slim they’ll pull it from the sale,be prepared to go after while it’s in bk.Let us know how it goes, curt in sc

import · April 18, 2003, 7:36am

Step 2 - Posted by rm

Posted by rm on April 18, 2003 at 07:36:04:

Thanks for the idea.

So, if the reinstatement costs 8-9k, and the monthly pmts are 1k+/-, we’re in for 10k with no answer yet on the short sale. That’s a few dollars with no guarantee that I’ll get the short approved at a price that makes sense.

Is there any way to control that risk?

Have you ever been able to get a short approved by the bank w/o them doing their appraisal/inspection/BPO?

Thanks a million.

import · April 21, 2003, 11:55am

Re: need help with short sale situation - Posted by Joe

Posted by Joe on April 21, 2003 at 11:55:33:

Any luck with going up the chain of command on this short-sale?

import · April 18, 2003, 7:50am

you know what? - Posted by rm

Posted by rm on April 18, 2003 at 07:50:28:

You’re right!

I’m going to try to work upwards on this. I’ve been surprisingly meek with this group… probably because they’ve actually been cordial.

Thanks for the reminder.

import · April 18, 2003, 7:48am

Re: need help with short sale situation - Posted by rm

Posted by rm on April 18, 2003 at 07:48:34:

I’ve played the threat of the BK card effectively in the past, however I’ve never had anyone file.

I had heard that once the BK is filed, that the banks won’t deal- they’ll refer to the atty.

Any truth to that?

I’m familiar with the law firm their using- a “slaughterhouse” operation for foreclosure and bk proceedings. They s_ck(!!!).

If that’s the only channel left available at that point, we’re probably done.

import · April 18, 2003, 4:03pm

Re: Step 2 - Posted by MoniqueUSA

Posted by MoniqueUSA on April 18, 2003 at 16:03:13:

rm,

I see now. You don’t have an answer yet on the short sale payoff that they will accept.

I would NOT risk $10K on a deal that I was not sure of. In my example, the issue was timing. The lender agreed to an amount (in excess of $100K) and they wanted it by a certain date to stop the sale. They agreed to accept the reinstatement to stop the sale and wait for the difference to short payoff the balance within 30 days.

Sorry for the confusion.

MoniqueUSA