Short Sales

[socrattt]

It sounds as though the word on the street over the last few months is that banks seem to be really tight on pushing the short sales through. I am curious to know what experience other agents out there are having with these types of issues.

Generally speaking it seems as though most second mortgage holders would be happy to walk away with something rather than nothing, but I recently heard of a situation where the 2nd wanted nothing to do with the short sale because they found the buyer already had another mortgage he was current on. The property ended up going through the foreclosure process and after looking at the numbers the 2nd didn’t make a dime. Is it me or is there a lot of more at stake than the bottom line these days. It seems as there is also a bit of pride involved. I am hearing story after story that these banks are really making no sense in these transactions. It just doesn’t make sense on paper, but then again what does these days?

My guess is these short sales are going to continue to get more difficult as the banks are well aware of the supply and demand issues. The longer they stall on filing an NOD the longer they have wait out the market and list these homes hoping they time the market on the upswing.

I thought the whole Obama incentive program to push these short sales through was a joke. I don’t think these banks care about $1K. I think they would much rather put a deficiency judgment against a seller and let the home go to foreclosure than make some additional money on the short sale.

Have any agents been seeing this trend?

[sdrealtor]

I’m closing 10 this month.

[sdrealtor]

I’m closing 10 this month.

[sdrealtor]

I’m closing 10 this month.

[sdrealtor]

I’m closing 10 this month.

[sdrealtor]

I’m closing 10 this month.

[DataAgent]

Good ‘short sale’ article in USA Today:
http://www.usatoday.com/money/economy/housing/2009-08-04-short-sales-mortgages_N.htm?loc=interstitialskip

[DataAgent]

Good ‘short sale’ article in USA Today:
http://www.usatoday.com/money/economy/housing/2009-08-04-short-sales-mortgages_N.htm?loc=interstitialskip

[DataAgent]

Good ‘short sale’ article in USA Today:
http://www.usatoday.com/money/economy/housing/2009-08-04-short-sales-mortgages_N.htm?loc=interstitialskip

[DataAgent]

Good ‘short sale’ article in USA Today:
http://www.usatoday.com/money/economy/housing/2009-08-04-short-sales-mortgages_N.htm?loc=interstitialskip

[DataAgent]

Good ‘short sale’ article in USA Today:
http://www.usatoday.com/money/economy/housing/2009-08-04-short-sales-mortgages_N.htm?loc=interstitialskip

[pepsi]

[quote=socrattt]
but I recently heard of a situation where the 2nd wanted nothing to do with the short sale because they found the buyer already had another mortgage he was current on. The property ended up going through the foreclosure process and after looking at the numbers the 2nd didn’t make a dime.[/quote]

If you are the 2nd lien holder, would you agree on a short sale that give you 10 cent (or even 1 cent) on a dollar or would you go after the seller for the full amount after the auction ?

There are a lot of 2nd liens in 100-200K for lower end and 300K – 500K for the higher mid end.
With that much of money at stake and knowing they are keeping current on that mortgage, the 2nd lien holder has good chance to get most of their money back, even after attorney fees and other charges. It is unlikely this guy will declare BK to wipe out the recourse 2nd.

Since the seller has 2nd home (mortgage), they probably put enough (20% or more) money to get the loan these days. And that is the money the 2nd can go after.

Why would you agree to a deal that you are absolutely going to lose a lot of money ?

Put yourself into their shoes, and you know why.

[pepsi]

[quote=socrattt]
but I recently heard of a situation where the 2nd wanted nothing to do with the short sale because they found the buyer already had another mortgage he was current on. The property ended up going through the foreclosure process and after looking at the numbers the 2nd didn’t make a dime.[/quote]

If you are the 2nd lien holder, would you agree on a short sale that give you 10 cent (or even 1 cent) on a dollar or would you go after the seller for the full amount after the auction ?

There are a lot of 2nd liens in 100-200K for lower end and 300K – 500K for the higher mid end.
With that much of money at stake and knowing they are keeping current on that mortgage, the 2nd lien holder has good chance to get most of their money back, even after attorney fees and other charges. It is unlikely this guy will declare BK to wipe out the recourse 2nd.

Since the seller has 2nd home (mortgage), they probably put enough (20% or more) money to get the loan these days. And that is the money the 2nd can go after.

Why would you agree to a deal that you are absolutely going to lose a lot of money ?

Put yourself into their shoes, and you know why.

[pepsi]

[quote=socrattt]
but I recently heard of a situation where the 2nd wanted nothing to do with the short sale because they found the buyer already had another mortgage he was current on. The property ended up going through the foreclosure process and after looking at the numbers the 2nd didn’t make a dime.[/quote]

If you are the 2nd lien holder, would you agree on a short sale that give you 10 cent (or even 1 cent) on a dollar or would you go after the seller for the full amount after the auction ?

There are a lot of 2nd liens in 100-200K for lower end and 300K – 500K for the higher mid end.
With that much of money at stake and knowing they are keeping current on that mortgage, the 2nd lien holder has good chance to get most of their money back, even after attorney fees and other charges. It is unlikely this guy will declare BK to wipe out the recourse 2nd.

Since the seller has 2nd home (mortgage), they probably put enough (20% or more) money to get the loan these days. And that is the money the 2nd can go after.

Why would you agree to a deal that you are absolutely going to lose a lot of money ?

Put yourself into their shoes, and you know why.

[pepsi]

[quote=socrattt]
but I recently heard of a situation where the 2nd wanted nothing to do with the short sale because they found the buyer already had another mortgage he was current on. The property ended up going through the foreclosure process and after looking at the numbers the 2nd didn’t make a dime.[/quote]

If you are the 2nd lien holder, would you agree on a short sale that give you 10 cent (or even 1 cent) on a dollar or would you go after the seller for the full amount after the auction ?

There are a lot of 2nd liens in 100-200K for lower end and 300K – 500K for the higher mid end.
With that much of money at stake and knowing they are keeping current on that mortgage, the 2nd lien holder has good chance to get most of their money back, even after attorney fees and other charges. It is unlikely this guy will declare BK to wipe out the recourse 2nd.

Since the seller has 2nd home (mortgage), they probably put enough (20% or more) money to get the loan these days. And that is the money the 2nd can go after.

Why would you agree to a deal that you are absolutely going to lose a lot of money ?

Put yourself into their shoes, and you know why.

[Author]

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