Serious concern in Short Sale negotiation

Catherine, that is what I'll do Monday morning. To have some more fun with this one... the buyer just walked 2 days ago, out of frustration. It happens more and more, even after verifying that the buyer can and will wait. I'm loosing about 40% of them but, It is not so bad! I just change the wording on the property description to "Bank approved price of..." and get another buyer within days. The problem is that the banks are getting away with just about every demand and most of us, Realtors, just cave in. The banks know that our due diligent will have us give-in in most cases. That's why, I wish the NAR will take a strong stand and get us all the support they suppose to provide us as members.

I am having the same issue with IndyMac1 st and SLS 2nd. I posted my scenario some days ago on this forum as well. My sale date is set for 11/9/09. I am waiting for the 2nd to approve on a $3,000 payout and the rest in the form of a note between the homeowner and SLS. This would be for $9,500 and due at sale of property (the 2nd wanted $12,508). A note does not have to be included in the HUD and does not have to be paid through escrow. This is the only way the 1st won't know the 2nd is getting more and nothing is being done illegally.

Unfortunately, the 2nd is taking their sweet time on the approval (or denial). In the meantime, the 1st is not willing to postpone the sale date of 11/9/09, although my approval with them is good until 11/15/09. I figure once I get a written approval from the 2nd, the 1st will then postpone the sale. I have the short sale department supervisors email and number for IndyMac which I plan to contact on Monday. Like Catherine said, I'll keep it short, sweet and professional.

Please let us know how your situation pans out. I'll keep you posted with mine as well.

The NAR NEEDS TO GET INVOLVED ..... quick.

Thomas,

John Cleek: you wrote: "Before we can draw such a harsh conclusion we should look at the bigger picture. "

Of course we should. I was just basing my thoughts on the info that was provided. But I stick to my opinion that the 1st mtgee should worry about what is available to itself, and not worry so much about what the 2nd is getting. What the 1st apprears to be doing, IMHO, is just playing a game of one upmanship. This is not, IMHO, IMHO, IMHO, a good business practice.

"This is a great time to buy a house".

Akron, Ohio

I understand. We view the issue a little differently but nothing wrong there.

My view is that 2nd mortgages are often a major cause for the homeowner being in trouble on their first. They either over-bought to begin with and thus needed a second for the down pmt or to service the loan while they hoped their income would grow to cover their obligations or they used a 2nd for 'wants' rather than 'needs' and the combined obligation was more than they could manage.

If I were the lender who made the original loan in a prudent manner and there was no 2nd in sight at the time, I would be more than a little upset that the easy money that was around for HELOCs changed the ratios of debt in a negative way. If I required 20% down and then a year later they not only borrowed against the 20% equity, they found a lender who would lend them 120% of value I wouldn't be too keen seeing the irresponsible junior lender expecting me to take an even smaller percentage of my first mtg balance so they could be paid more.

Hope this makes sene to someone besides me.

RE: Serious concern in Short Sale negotiation Thomas McCombs Nov 03, 2009

What is an IHMO

" In My Humble Opinion"

I agree that there should be guidelines that all banks follow for short sales but that will never happen. Each short sale is different and always will be. This entire process seems backwards. Look what we do......... we list the property, gather financial information from the Seller, get an offer and then contact the bank and say guess what.... we are selling this property short and want to approve it. Now I owned property in the late 80's and early 90's but I was not a Realtor. Can anyone tell me if the process was the same then for short sales?