[SD Realtor]

Yes I agree. I didn’t doubt that this person was telling me the truth about the mod. Who knows, the attorney may have dug up the loan docs and found something.

I have not done the heaviest volume of short sales and the two I am in now where I am representing the listing side have been really tough moreso because the buyers have come and gone several times. The current two do represent a dichotomy though, one is a very tough hardship case. The seller has had health issues which caused him to lose his job and subsequently the home. It is a very real hardship case and it has been hard but we have finally got a buyer who is in for the long haul after 3 previous buyers. As you know with each buyer and entirely new package needs to get sent in and basically everything resets (at least with the lender I am working with). The second case is opposite. This is a seller who bought at the peak, then basically bought another home a few months ago and decided to either let the first one go to foreclosure or try to short sell it. He is not distressed and has not missed any payments but by the same token he doesn’t have a huge pile of money either. He has been very cooperative with the lender and we got approval on his short sale but again, it took several buyers to get someone who stuck it out for the long haul. Now the appraisal came in low so we just submitted it to the lender for a price adjustment. They gave a verbal approval but we don’t have the letter yet. In both cases there were two lenders so it was a friggin grind.

In case 1 the sellers really anguished over whether they wanted to sell the home. Actually they listed in the spring of last year, then pulled the plug in September, then tried to do a loan mod, then didnt like the loan mod terms, then called me back to try again. So like you said, it comes down to do you really want the home or not?

However, I have not yet run across a case where the lender flat out denied a short sale but I have not had any cases where the lender was preconditioned by some event with the seller. So yes I suppose it can happen but I have not experienced it yet.

[SD Realtor]

Yes I agree. I didn’t doubt that this person was telling me the truth about the mod. Who knows, the attorney may have dug up the loan docs and found something.

I have not done the heaviest volume of short sales and the two I am in now where I am representing the listing side have been really tough moreso because the buyers have come and gone several times. The current two do represent a dichotomy though, one is a very tough hardship case. The seller has had health issues which caused him to lose his job and subsequently the home. It is a very real hardship case and it has been hard but we have finally got a buyer who is in for the long haul after 3 previous buyers. As you know with each buyer and entirely new package needs to get sent in and basically everything resets (at least with the lender I am working with). The second case is opposite. This is a seller who bought at the peak, then basically bought another home a few months ago and decided to either let the first one go to foreclosure or try to short sell it. He is not distressed and has not missed any payments but by the same token he doesn’t have a huge pile of money either. He has been very cooperative with the lender and we got approval on his short sale but again, it took several buyers to get someone who stuck it out for the long haul. Now the appraisal came in low so we just submitted it to the lender for a price adjustment. They gave a verbal approval but we don’t have the letter yet. In both cases there were two lenders so it was a friggin grind.

In case 1 the sellers really anguished over whether they wanted to sell the home. Actually they listed in the spring of last year, then pulled the plug in September, then tried to do a loan mod, then didnt like the loan mod terms, then called me back to try again. So like you said, it comes down to do you really want the home or not?

However, I have not yet run across a case where the lender flat out denied a short sale but I have not had any cases where the lender was preconditioned by some event with the seller. So yes I suppose it can happen but I have not experienced it yet.

[SD Realtor]

Yes I agree. I didn’t doubt that this person was telling me the truth about the mod. Who knows, the attorney may have dug up the loan docs and found something.

I have not done the heaviest volume of short sales and the two I am in now where I am representing the listing side have been really tough moreso because the buyers have come and gone several times. The current two do represent a dichotomy though, one is a very tough hardship case. The seller has had health issues which caused him to lose his job and subsequently the home. It is a very real hardship case and it has been hard but we have finally got a buyer who is in for the long haul after 3 previous buyers. As you know with each buyer and entirely new package needs to get sent in and basically everything resets (at least with the lender I am working with). The second case is opposite. This is a seller who bought at the peak, then basically bought another home a few months ago and decided to either let the first one go to foreclosure or try to short sell it. He is not distressed and has not missed any payments but by the same token he doesn’t have a huge pile of money either. He has been very cooperative with the lender and we got approval on his short sale but again, it took several buyers to get someone who stuck it out for the long haul. Now the appraisal came in low so we just submitted it to the lender for a price adjustment. They gave a verbal approval but we don’t have the letter yet. In both cases there were two lenders so it was a friggin grind.

In case 1 the sellers really anguished over whether they wanted to sell the home. Actually they listed in the spring of last year, then pulled the plug in September, then tried to do a loan mod, then didnt like the loan mod terms, then called me back to try again. So like you said, it comes down to do you really want the home or not?

However, I have not yet run across a case where the lender flat out denied a short sale but I have not had any cases where the lender was preconditioned by some event with the seller. So yes I suppose it can happen but I have not experienced it yet.

[SD Realtor]

Yes I agree. I didn’t doubt that this person was telling me the truth about the mod. Who knows, the attorney may have dug up the loan docs and found something.

I have not done the heaviest volume of short sales and the two I am in now where I am representing the listing side have been really tough moreso because the buyers have come and gone several times. The current two do represent a dichotomy though, one is a very tough hardship case. The seller has had health issues which caused him to lose his job and subsequently the home. It is a very real hardship case and it has been hard but we have finally got a buyer who is in for the long haul after 3 previous buyers. As you know with each buyer and entirely new package needs to get sent in and basically everything resets (at least with the lender I am working with). The second case is opposite. This is a seller who bought at the peak, then basically bought another home a few months ago and decided to either let the first one go to foreclosure or try to short sell it. He is not distressed and has not missed any payments but by the same token he doesn’t have a huge pile of money either. He has been very cooperative with the lender and we got approval on his short sale but again, it took several buyers to get someone who stuck it out for the long haul. Now the appraisal came in low so we just submitted it to the lender for a price adjustment. They gave a verbal approval but we don’t have the letter yet. In both cases there were two lenders so it was a friggin grind.

In case 1 the sellers really anguished over whether they wanted to sell the home. Actually they listed in the spring of last year, then pulled the plug in September, then tried to do a loan mod, then didnt like the loan mod terms, then called me back to try again. So like you said, it comes down to do you really want the home or not?

However, I have not yet run across a case where the lender flat out denied a short sale but I have not had any cases where the lender was preconditioned by some event with the seller. So yes I suppose it can happen but I have not experienced it yet.

[SD Realtor]

This is anectodal and not verified but I heard from someone that I had a listing appointment with about 6 months ago that they hired an attorney to work on a loan mod for them. They said that they had a principal reduction that was determined by an appraisal such that the value of the home was equivalent to todays standards. They also said they were put into a 4.5% fixed rate loan. Finally they did have to sign an agreement that should they resell, that any and all gains above the reset principal would be realized by the beneficiary until those gains equaled the forgiven balance AND all defered interest above the 4.5% fixed rate when compared to the current rate they had. I have NO IDEA if this is true. I checked the tax roll on the home and there is no change (which I expected). They said that the fee was not cheap but they are happy with the results. Conversely I have heard alot of the loan mod programs from various “workout experts” were shams and of no help at all.

[SD Realtor]

This is anectodal and not verified but I heard from someone that I had a listing appointment with about 6 months ago that they hired an attorney to work on a loan mod for them. They said that they had a principal reduction that was determined by an appraisal such that the value of the home was equivalent to todays standards. They also said they were put into a 4.5% fixed rate loan. Finally they did have to sign an agreement that should they resell, that any and all gains above the reset principal would be realized by the beneficiary until those gains equaled the forgiven balance AND all defered interest above the 4.5% fixed rate when compared to the current rate they had. I have NO IDEA if this is true. I checked the tax roll on the home and there is no change (which I expected). They said that the fee was not cheap but they are happy with the results. Conversely I have heard alot of the loan mod programs from various “workout experts” were shams and of no help at all.

[SD Realtor]

This is anectodal and not verified but I heard from someone that I had a listing appointment with about 6 months ago that they hired an attorney to work on a loan mod for them. They said that they had a principal reduction that was determined by an appraisal such that the value of the home was equivalent to todays standards. They also said they were put into a 4.5% fixed rate loan. Finally they did have to sign an agreement that should they resell, that any and all gains above the reset principal would be realized by the beneficiary until those gains equaled the forgiven balance AND all defered interest above the 4.5% fixed rate when compared to the current rate they had. I have NO IDEA if this is true. I checked the tax roll on the home and there is no change (which I expected). They said that the fee was not cheap but they are happy with the results. Conversely I have heard alot of the loan mod programs from various “workout experts” were shams and of no help at all.

[SD Realtor]

This is anectodal and not verified but I heard from someone that I had a listing appointment with about 6 months ago that they hired an attorney to work on a loan mod for them. They said that they had a principal reduction that was determined by an appraisal such that the value of the home was equivalent to todays standards. They also said they were put into a 4.5% fixed rate loan. Finally they did have to sign an agreement that should they resell, that any and all gains above the reset principal would be realized by the beneficiary until those gains equaled the forgiven balance AND all defered interest above the 4.5% fixed rate when compared to the current rate they had. I have NO IDEA if this is true. I checked the tax roll on the home and there is no change (which I expected). They said that the fee was not cheap but they are happy with the results. Conversely I have heard alot of the loan mod programs from various “workout experts” were shams and of no help at all.

[SD Realtor]

This is anectodal and not verified but I heard from someone that I had a listing appointment with about 6 months ago that they hired an attorney to work on a loan mod for them. They said that they had a principal reduction that was determined by an appraisal such that the value of the home was equivalent to todays standards. They also said they were put into a 4.5% fixed rate loan. Finally they did have to sign an agreement that should they resell, that any and all gains above the reset principal would be realized by the beneficiary until those gains equaled the forgiven balance AND all defered interest above the 4.5% fixed rate when compared to the current rate they had. I have NO IDEA if this is true. I checked the tax roll on the home and there is no change (which I expected). They said that the fee was not cheap but they are happy with the results. Conversely I have heard alot of the loan mod programs from various “workout experts” were shams and of no help at all.

[SD Realtor]

My guess is simply that the auctions are much more attended now. Last week there had to be at least 60 people downtown. Also I am noting that there are alot more bidders willing to take alot less margin. That is, at least by my study, they are making bids on places where they may only clear 10% after a resale as opposed to 20% or more.

For instance today the property on Orange Blossom in Encinitas had an opening bid of 620k? WTF… not much margin on that…

So in a nutshell I am not convinced that the opening bids have changed that much. Just a guess though.

[SD Realtor]

My guess is simply that the auctions are much more attended now. Last week there had to be at least 60 people downtown. Also I am noting that there are alot more bidders willing to take alot less margin. That is, at least by my study, they are making bids on places where they may only clear 10% after a resale as opposed to 20% or more.

For instance today the property on Orange Blossom in Encinitas had an opening bid of 620k? WTF… not much margin on that…

So in a nutshell I am not convinced that the opening bids have changed that much. Just a guess though.

[SD Realtor]

My guess is simply that the auctions are much more attended now. Last week there had to be at least 60 people downtown. Also I am noting that there are alot more bidders willing to take alot less margin. That is, at least by my study, they are making bids on places where they may only clear 10% after a resale as opposed to 20% or more.

For instance today the property on Orange Blossom in Encinitas had an opening bid of 620k? WTF… not much margin on that…

So in a nutshell I am not convinced that the opening bids have changed that much. Just a guess though.

[SD Realtor]

My guess is simply that the auctions are much more attended now. Last week there had to be at least 60 people downtown. Also I am noting that there are alot more bidders willing to take alot less margin. That is, at least by my study, they are making bids on places where they may only clear 10% after a resale as opposed to 20% or more.

For instance today the property on Orange Blossom in Encinitas had an opening bid of 620k? WTF… not much margin on that…

So in a nutshell I am not convinced that the opening bids have changed that much. Just a guess though.

[SD Realtor]

My guess is simply that the auctions are much more attended now. Last week there had to be at least 60 people downtown. Also I am noting that there are alot more bidders willing to take alot less margin. That is, at least by my study, they are making bids on places where they may only clear 10% after a resale as opposed to 20% or more.

For instance today the property on Orange Blossom in Encinitas had an opening bid of 620k? WTF… not much margin on that…

So in a nutshell I am not convinced that the opening bids have changed that much. Just a guess though.

[SD Realtor]

It is a tough question to answer. It all depends on what the terms of the loan mod are, if there is an actual reduction in your balance or are they backloading it… etc….

So you can either loan mod it, short sell it, or you can simply walk away as well. You can also talk to the bank about a deed in lieu of foreclosure which is basically handing them the keys but doing it in a more structured manner then simply letting it go to foreclosure. I also assume there is only 1 loan on the home.

The rate of recidivism on loan mods is quite high. I am not sure a loan mod will give you the security you are seeking. However if it substantially reduces your monthly payment WITHOUT hurting you on the backend (ie – they backload the deferred interest) then maybe that works for you.

Unfortunately without running the numbers it is hard to say. Many people complain about the short sale process and it is a pain in the butt. However most people who do go through and complete it, feel much better after they are out from under that debt load. At least that is my experience. sdr does alot of short sales and he may have advice on that as well.

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