buying houses and the foreclosure situation

[SD Realtor]

Hi Enorah…

Yeah don’t you remember I kind of did pooh pooh on it… Of course that was right before the August credit events…Anyways like I said, your feeling was petty well timed. Not sure prices did a full tilt but it was the initiation of some of the credit problems really coming to light.

*****

Dealhunter I have seen alot of REO’s akin to what you stated and I have seen others in surprisingly good shape. I am not sure the OP really meant to actually purchase a home at a trustee sale. More likely at one of the REDC auctions or even an MLS REO.

The biggest misconception people have about buying an REO is the liability release. However if you know what you are getting into, and get ALL of your diligence done you can do pretty well pricewise.

SD Realtor

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[Author]

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