A Short Sale Miracle

[no_such_reality]

845. No more overbearing mortgage payment and a ‘successfully’ paid off mortgage.

[temeculaguy]

I’ll say no change or under 50 point hit. It makes sense, shorts cuase less financial damage to the lender than jingle mail or freeloading for 6 months to a year. The back taxes, the back hoa fees, all of that is usually avoided with a short. I personally think banks could have done so much to help themselves if they had not been so against shorts a year ago, they were worthless a year ago, you could never get an answer, on one I never did get an answer. I am biased having made three short offers last year, all rejected and later repo’d, all ended up selling for less than my offer and all stopped getting mortgage checks from the occupant. If they did the math math, the lost twice the money dragging their feet. The only thing to motivate the borrower on a short is credit salvaging, I bet we hear more stories like this going forward, because if there is no difference in the credit hit, they will just stop getting payments from those people.

[temeculaguy]

I’ll say no change or under 50 point hit. It makes sense, shorts cuase less financial damage to the lender than jingle mail or freeloading for 6 months to a year. The back taxes, the back hoa fees, all of that is usually avoided with a short. I personally think banks could have done so much to help themselves if they had not been so against shorts a year ago, they were worthless a year ago, you could never get an answer, on one I never did get an answer. I am biased having made three short offers last year, all rejected and later repo’d, all ended up selling for less than my offer and all stopped getting mortgage checks from the occupant. If they did the math math, the lost twice the money dragging their feet. The only thing to motivate the borrower on a short is credit salvaging, I bet we hear more stories like this going forward, because if there is no difference in the credit hit, they will just stop getting payments from those people.

[temeculaguy]

I’ll say no change or under 50 point hit. It makes sense, shorts cuase less financial damage to the lender than jingle mail or freeloading for 6 months to a year. The back taxes, the back hoa fees, all of that is usually avoided with a short. I personally think banks could have done so much to help themselves if they had not been so against shorts a year ago, they were worthless a year ago, you could never get an answer, on one I never did get an answer. I am biased having made three short offers last year, all rejected and later repo’d, all ended up selling for less than my offer and all stopped getting mortgage checks from the occupant. If they did the math math, the lost twice the money dragging their feet. The only thing to motivate the borrower on a short is credit salvaging, I bet we hear more stories like this going forward, because if there is no difference in the credit hit, they will just stop getting payments from those people.

[temeculaguy]

I’ll say no change or under 50 point hit. It makes sense, shorts cuase less financial damage to the lender than jingle mail or freeloading for 6 months to a year. The back taxes, the back hoa fees, all of that is usually avoided with a short. I personally think banks could have done so much to help themselves if they had not been so against shorts a year ago, they were worthless a year ago, you could never get an answer, on one I never did get an answer. I am biased having made three short offers last year, all rejected and later repo’d, all ended up selling for less than my offer and all stopped getting mortgage checks from the occupant. If they did the math math, the lost twice the money dragging their feet. The only thing to motivate the borrower on a short is credit salvaging, I bet we hear more stories like this going forward, because if there is no difference in the credit hit, they will just stop getting payments from those people.

[temeculaguy]

I’ll say no change or under 50 point hit. It makes sense, shorts cuase less financial damage to the lender than jingle mail or freeloading for 6 months to a year. The back taxes, the back hoa fees, all of that is usually avoided with a short. I personally think banks could have done so much to help themselves if they had not been so against shorts a year ago, they were worthless a year ago, you could never get an answer, on one I never did get an answer. I am biased having made three short offers last year, all rejected and later repo’d, all ended up selling for less than my offer and all stopped getting mortgage checks from the occupant. If they did the math math, the lost twice the money dragging their feet. The only thing to motivate the borrower on a short is credit salvaging, I bet we hear more stories like this going forward, because if there is no difference in the credit hit, they will just stop getting payments from those people.

[SD Realtor]

I keep reading about how short sales are impossible to close as well. To me, there is still a heck of alot of variability in them. It “appears” to me that by far, Wells Fargo is the most motivated lender with regards to approval and processing them. It falls off quickly after that. I have a short sale that will close next week and approval for the short sale was obtained in a matter of about 3 weeks after the offer was submitted. Conversely I have a few other short sales where the buyers have been waiting for months with no response.

[SD Realtor]

I keep reading about how short sales are impossible to close as well. To me, there is still a heck of alot of variability in them. It “appears” to me that by far, Wells Fargo is the most motivated lender with regards to approval and processing them. It falls off quickly after that. I have a short sale that will close next week and approval for the short sale was obtained in a matter of about 3 weeks after the offer was submitted. Conversely I have a few other short sales where the buyers have been waiting for months with no response.

[SD Realtor]

I keep reading about how short sales are impossible to close as well. To me, there is still a heck of alot of variability in them. It “appears” to me that by far, Wells Fargo is the most motivated lender with regards to approval and processing them. It falls off quickly after that. I have a short sale that will close next week and approval for the short sale was obtained in a matter of about 3 weeks after the offer was submitted. Conversely I have a few other short sales where the buyers have been waiting for months with no response.

[SD Realtor]

I keep reading about how short sales are impossible to close as well. To me, there is still a heck of alot of variability in them. It “appears” to me that by far, Wells Fargo is the most motivated lender with regards to approval and processing them. It falls off quickly after that. I have a short sale that will close next week and approval for the short sale was obtained in a matter of about 3 weeks after the offer was submitted. Conversely I have a few other short sales where the buyers have been waiting for months with no response.

[SD Realtor]

I keep reading about how short sales are impossible to close as well. To me, there is still a heck of alot of variability in them. It “appears” to me that by far, Wells Fargo is the most motivated lender with regards to approval and processing them. It falls off quickly after that. I have a short sale that will close next week and approval for the short sale was obtained in a matter of about 3 weeks after the offer was submitted. Conversely I have a few other short sales where the buyers have been waiting for months with no response.

[Effective Demand]

[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]

Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.

[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.

[/quote]

There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.

The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.

Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.

[Effective Demand]

[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]

Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.

[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.

[/quote]

There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.

The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.

Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.

[Effective Demand]

[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]

Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.

[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.

[/quote]

There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.

The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.

Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.

[Effective Demand]

[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]

Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.

[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.

[/quote]

There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.

The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.

Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.

[Author]

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