short sale with countrywide - Posted by Brad(Wa)

Posted by Marcos on December 12, 2001 at 07:42:44:

Correct me if I’m wrong. But, if you can walk in with no muss, no fuss and get the house for $85k and not have to deal with the hassles of a short sale. And you already have buyers at $110k. Then why are you worrying about the extra $10k? Don’t lose the $25k you have in pocket, to get the $10k you perceive is still on the table.

But, to answer your post. Banks are funny creatures. They’ll basically do what they want to do. It’s hard to read the motivation of a bank, sometimes they will shoot themselves in the foot, just to save a buck or two, and other times they’ll give you anything you ask just to make a problem go away. Depends on what mood they’re in that day, or the position of the stars, or something. Basically, you can never get a bank to do something they don’t want to do. They usually know what they want. And it’s up to you to uncover it.

Good Luck,


short sale with countrywide - Posted by Brad(Wa)

Posted by Brad(Wa) on December 11, 2001 at 23:49:56:

I am trying to do a short sale with a countrywide loan. I do not have a lot of experience with short sales and we are having a hard time getting them to cooperate. They won’t give us a payoff amount. I am trying to flip a house that has a countrywide loan and I have been told that I cannot sell the house for a higher amount than what I purchase the house on short sale. How can I get around this? The loan on the house is about $85,000. I am hoping to short sale it for $75,000. I have buyers that are ready to buy it for $110,000+ and I am running out of time. I was told that the only people that can negotiate a short sale with countrywide are lawyers and the trustee of the house(I am neither). Is this true? The house gets auctioned in about 60 days and I am trying to make this happen soon. Any help on this is appreciated!!

Re: short sale with countrywide - Posted by Stacy (AZ)

Posted by Stacy (AZ) on December 12, 2001 at 11:19:14:

Get an authorization to release loan information signed by the sellers. This will allow you to obtain loan information from Countrywide. They will probably want to see a signed sales agreement, so get one signed, but make it contingent on the short-sale. Are you speaking to the right people at countrywide? You should be talking to the loss mitigation department.

If Countrywide still will not allow you to negotiate, get the sellers to sign a limited power of attorney to you. This way, countrywide must allow you to step into the shoes of the seller and negotiate with the bank.

Get used to the runaround, but refuse to allow it to stop you. This is very typical of dealing with loss mitigation depts at banks. I could tell you stories. (smile) However, you have to step up and be a pest until you get answers. If the rep said he’d get back to you in three days, call him every day and ask if there’s any news. Also, if it starts to become obvious you can’t get even payoff information in the next few days, for example, ask to speak to the rep’s supervisor. Head it off before it gets out of hand. You may have to pay for the payoff info, by the way (you know banks).

A few more tips: I wouldn’t necessarily make a habit of trying for short sales without the ability to get a loan yourself in case your buyers can’t or won’r close the deal. If the house is being foreclosed in 60 days, you now have precious little time to get your buyers approved and funded. So if you committed to paying off the loan, you are already in a precarious and risky position. In real estate, it’s the wise investor who recognizes risk and avoids it where possible. If you already knew you could get funded if things fall through, your risk would be minimal. The sellers are now counting on you to do as promised and save their credit, so make sure you do it. If you know you may not be able to follow through if things don’t go as planned, it’s best to tell them so they can look elsewhere for a solution. They’re in bad shape and running out of time, so don’t waste this time and having the sellers end-up with ruined credit.

Another thing to try, is to have the sellers try to negotiate with the loss mitigation dept. Countrywide may very well agree to accept a partial payment on the arrearage, and add the remainder to the end of the loan. This way you could come in with little cash and pay that partial payment in exchange for the deed (subject-to). Then you could sell (L/O) the home, owner financed, to anyone you want. The buyers would put down as much or more than you paid in arrears, and you’d have $25K in equity waiting for the back end, and a positive cah flow. this would be much easier than a short sale, and the sellers would not end-up with a tax burden this year on the short sale. You also would not have to worry about a bank financing your buyers without seasoning (which makes the flip risky).

OK, I’ve rambled enough. Good luck.