Posted by Kristine-CA on December 16, 2007 at 23:57:39:
Hi Luke. I understand that lenders agree to short sales in order to get
paid off, but…have you ever seen/heard of investor buyers working
the short sale and getting the lender to allow the investor to take over/
assume the rewritten loan? Or, a lender that will provide a new loan to
the investor buyer for the short sale price?
The reason I ask is that someone recently told me about a deal they
took over sub2. They got their authorizaton to release, called the
lender and reworked the loan, changing the interest rate and
payments.
I told a seller last week that keeps calling me that I wouldn’t be
interested in participating in his short sales unless he can get the
number I want AND he can get the lender to let me assume the loan or
write a new loan for me. I thought that would get rid of him, but now
I’m not so sure…
With all the hoopla about short sales I’m wondering how in the world can they be compatable with a sub2 deal.
Would a lender such as Contrywide actually allow you to take property sub2 after a short sale?
Hello Gerald.
Actually I am very well versed on the sub2 topic, and also know enough about the short sale process.
What I don’t understand is how a lender would approve the two together wihout the buyer qualifying, which by the way I have heard it is happening. With the lenders going through so much turmiol now with the massive volume of foreclosures, eventually some concessions are being made.
For example, recently I met a countrywide employee at a property I was looking at. He told me of a new program they’ve just implemented caled Cash for Keys. If a buyer recieves a NOD, they are offered approx. $2000.00
cah for turning over keys and showing the property has not been damaged, therefore saving them money on rehabbing.
Never would have even considered this in the past.
Thanks,
Paul
Posted by Bill H on December 16, 2007 at 19:25:53:
Cash for keys has been around for over thrity (30) years that I know of…not so new.
Lenders do not normally approve of subject-2.
You, the buyer, take the proerty subject to existing lienss.
Short sales are exactly that…sales. And the lender expects to get paid at closing.
You, the buyer, agree to pay a certain price at closing.
I don’t think you understand Sub2s, Paul. You don’t ask the lender to approve a Sub2. You just do it. Frankly, the bank doesn’t care, it’s just that giving an approval would conflict with the DOS clause.
You talk to the lender on a short sale. You talk to the owner on a Sub2. In no case do you ask the lender to approve a Sub2.
Hello Stan-
Thank you for your response.
I,m here to be informed and don’t mind asking what may be a dumb question…it’s a way to learn.
I guess the area I’m very unclear on is what happens when a home owner is granted a short sale from the lender.
Does it have to be purchased by a buyer with cash or new financing?
My real question is can you as a buyer do a subject to after a seller has been granted the short sale?
If a seller has a property with a $300,000 balance with a current value of $250,000 and is granted a short sale for say $250,000, isn’t the lender expecting a payoff immediately?
I appreciate your insight and do you have a source for a good short sale course?
Posted by lukeNC on December 16, 2007 at 12:51:26:
Yes the lender wants the discounted payoff paid off in usually 60 days or less. If it isnt and they dont catch up the payments, the lender eventually gets the house.
You’re probably thinking that that becomes the new payoff of the loan, which could be up to 30 years from today. Wishful thinking but not the case.