Posts Tagged “Lender”
GM Agrees to Buy Lender AmeriCredit for $3.5 Billion
General Motors Co., the automaker 61 percent owned by the U.S., is buying subprime lender AmeriCredit Corp. for $3.5 billion to help it reach more customers with leases and loans to borrowers with faulty credit records.
Read more on BusinessWeek
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Negotiate with only one lien holder is the best short sale scenario, but what do you do when there are multiple liens with the same lender? It has been WHB Solutions experience that negotiating with the same lender can be an advantage depending on the lender.
For example, if both the first and second loans were held by Chase, there is a good chance of getting a short sale closed. If there was one loan with Countrywide and a second loan with Bank of America, it will be hard to get a short sale closed. Even though Bank of America bought Countrywide, they have different loss mitigation departments with different short sale approval guidelines.
We a short sale file that we could not close because Bank of America, as the first lender, would only give Countrywide $3000 in a short sale approval. Countrywide wanted $25,000 and would not give a short sale approval unless this was received. We tried to provide reason and arguments on how Countrywide would receive nothing if the property went to foreclosure and that they are technically the same bank and the overall short sale would net more money than going to foreclosure. Countrywide was so stubborn to get their money, they ended up getting nothing. It does not make any sense.
In a case where you have two loans that were originated from the same lender, it has been our experience that the second lien holder is more flexible. A typically response is that the second lien holder would give an approval for $3000 any day, but no full release or giving up their rights to deficiency is provided. Depending on the homeowner’s situation, they may be excluded from any future deficiency rights. Either they prove insolvency to the IRS or they qualify for the primary residence exclusion rules.
Typically, in any short sale negotiations, getting an agreement from the second lien holder should be obtained before going to the first lien holder. If this is not done, you would not have the right numbers to show what the first lender would net. So to avoid going back and forth with the both lenders, find out what the second lien holder is expecting to approve a short sale first.
In the majority of short sales, the first lien holder is the one who files for foreclosure. Once this filing occurs, many times, the second lien holder would move the loan to their Charge Off or Debt Recovery department. We have noticed that it is much easier to obtain an approval when this happens as the guidelines of providing an approval is less strict. At the point it is in debt recovery, the expectation is that the dollar amount they are looking to recover would be less than what would be expected if it was still with the loss mitigation department. Keep in mind that loans sent to a debt recovery department are sold on pennies on the dollar and there is a high possibility where no money would be recovered.
Full Article Resourse: www.whbsolutions.com/blog/
To learn more about how to qualify the best candidate for your short sale transaction visit whbsolutions.com. The number one factor in becoming successful in Short Sale Education, Short Sale Success and Short Sales is to learn how to pre-qualify your deal which includes finding the right buyer.
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A Short Sale Can Stop Home Foreclosure & Save Your Credit
Nothing is as detrimental to your credit rating as late mortgage payments and foreclosures. If you have fallen behind on your mortgage payments and are facing home foreclosure, you should consider using a short sale to sell your home now and avoid foreclosure.
One of the most common questions that homeowners ask is, “can I still sell my home if I am in foreclosure?” A Short Sale is simply selling your property for less than what is owed with the permission of your mortgage lender. It is not as complicated as many foreclosure advice experts make it sound, and is one of the best forms of foreclosure help available. There are three steps to closing a short sale: short sale pre-qualification, marketing the property, and closing the short sale.
The first step, short sale pre-qualification, is when you contact your lender and explain that your financial situation has changed and you wish to avoid foreclosure by selling your home. Most lenders have a short sale application that can be faxed or emailed. The application will tell you what documents you will need to gather and submit to your lender in order for them to determine if a short sale is an option. Common documents include paycheck stubs, tax returns, hardship letter, and bank statements. These items show your lender that you are not in a position to repay the loan.
Once your file has been pre-qualified for a short sale, you will market the property to find a qualified buyer. This means hiring a realtor and, if you can afford it, advertising your property in your local newspaper or other real estate publications. Remember, you are not trying to profit from the sale or cover what is owed to your lender. You are simply trying to stop home foreclosure and avoid have a foreclosure on your credit history by helping your lender recover as much of the money they loaned you as possible. It is also important to remember that the foreclosure process can be quite lengthy in some states, so don’t give up using a short sale to avoid foreclosure just because you do not find a buyer immediately.
Lastly, once you have found a qualified buyer, you will submit your purchase contract and the buyer’s credentials (pre-approval letter or proof of funds to close) to your lender. If your lender accepts the offer, then the deal is sent to a title company who will facilitate the closing of escrow. It is also important to order any city of point of sale inspections or other inspections as to avoid delaying your buyer from closing on time.
Once you have completed these steps, you will have stopped home foreclosure and your credit rating will be much better, in most cases, than if you had simply done nothing and lost your home through the foreclosure process. A short sale is a great option to anyone trying to avoid foreclosure.
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Posted by Usual in Lender Approved Short Sales, tags: anymore, best, can't, contacted, I've, Lender, Mortgage, said, Sale, Short, they
What is a short sale?
Will lenders approve the buyer?
I have a buyer, what should I do!
I’m not yet late on my payments, and im not in a forclosed situation YET. But, I can’t pay this month, i’m hoping to “short sale” before the 30days.
I need to do this asap…. I don’t want it to affect my credit. as i need to rent elswhere, and have a baby.
Thanks!
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A short sale is a great way to sell your home and avoid the credit consequences of foreclosure. A short sale is basically the negotiation with the lien holder for a payment of less then you owe.. If you’re on the brink of having your home foreclosed on it’s a good idea to start negotiations with your lender right away. Short sales are faster and less expensive than foreclosures. Foreclosure is not something you want to passively allow to occur, its detrimental to your life and should be avoided at all costs. A foreclosure will completely ruin your credit, lowering your score as much as 300 points! This is very difficult to recover from and in most cases takes years to bring your credit score back up. For the time after a foreclosure you will not be eligible for any types of credit such as loans, mortgage, credit cards, or even employment. Many employers check the credit of applicants (especially if the position involves handling of money) and poor credit history may not qualify you for the position.
A short sale is a great alternative to foreclosure but definitely should not be considered a good thing. Short sales will lower your credit score, Although much less than a foreclosure will. Homeowners should only consider going through with a short sale when foreclosure is eminent otherwise. The lenders will typically approve a short sale if they are losing less money out of the deal then if they foreclosed on your home. It’s important to understand that your lender is looking out for the companies best interest when negotiating a deal rather than yours. A short sale is a long complicated process that is difficult for individuals to negotiate without professional help. Most people who need a short sale are usually “upside down” on their loan. This means they owe the bank more money than they can sell their house for. The whole purpose of a short sale is to get your lender to allow you to quickly sell your home for less than it’s worth to prevent foreclosure. Your lender will receive all the proceeds from the sale.
If you are considering selling your home through a short sale the next important step is choosing a reputable company to negotiate on your behalf. When dealing with something as serious as negotiating a short sale with your lender it’s almost a must that you let an experienced attorney work on your behalf. The mortgage companies have attorneys working for them and so should you. You absolutely need an individual with extensive knowledge of the law to negotiate ideal terms for you the homeowner. There are many services out there that claim they can help you out, but if they don’t have attorneys on their staff its very unlikely they can negotiate the very best terms for you. A short sale is a maze of legal proceedings and documents that usually last about 6 months and when dealing with something as serious as your home its best to rely on the best organization you can. For starters you can check a company’s BBB (better business bureau )record for any complaints and see how long that company has been established.
The CreditLawGroup.com website of Smith & Gromann, P.A. is a multistate law firm whose practice is limited to federal consumer and banking law under which the credit reporting system operates. The firm provides cost efficient legal representation in disputing inaccurate, incorrect or unverifiable information contained on credit reports from the three major credit bureaus, Equifax
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Can I put a stipulation in the contract that it’s not fully executed until the lender approves? I don’t want to be sitting around stuck in a contract after the seller approves the price. The seller would agree to any price you throw at them….they aren’t getting anything back.
doinou - I don’t understand your answer at all. I don’t think you understand the question I’m asking. I want to know if I can back out of a short sale contract even if the seller agreed and signed. After that, the contract would be sent to the sellers lender for approval (which from what I understand, can take forever and a day).
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The seller is in financial difficulties and reached out to short sale the house at the beginning of the year. Presented all of the hardship paperwork properly and has been very agreeable up till now. We have been under contract for 5 months with back and forth updates and bank appraiser visits. The bank has finally agreed to sell the house and we need to have the final P&S signed. The seller has refused and says they have filed or have begun to file for bankruptcy and plans on keeping the house. Do we have any recourse at all?
Purchase and Sales. And nothing has changed no new addendums have been added. Just needed a clean updated final purchase and sales agreement finalized by all parties with the bank agreed upon price.
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Posted by Usual in Lender Approved Short Sales, tags: approves, before, deeded, During, Lender, over, Sale, seller, Short, title
I am trying to short-sale my property, and I got in contact with a company that specializes in buying short-sale properties. They are asking me to deed the title over to their company while they negotiate with my lender. I don’t feel comfortable signing away the title before the sale is approved, so I’m not going to do it, but I was just curious if this is normal procedure for a short sale.
I read the warranty deed, and it looks like they are wanting me to deed the title into a trust, in which I would be the beneficiary. Does anyone know exactly what this means?
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We are supposed to close escrow next week, all cash transaction.
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