Best Short Sell Banks
I would like to hear from all what experiences you have had with various banks reguarding ease or difficulty of Short Selling with them. It could make a difference in trying to do some short notice short sale deals, and figuring out if I even wanted to try my time with some of these potential deals.
Tim
you will have different experiences among banks and even among the different loss mitigaton officers at each bank. i would say that as a general matter dealing with a lender directly is better for purposes of a short sale than dealing with a loan servicing company who is handling the collection/foreclosure on behalf of the lender. Generally the loan servicing company simply wants to get the property foreclosed on as quickly as possible. But this too may vary from company to company. I guess my advice is simply to put together as compelling a proposal as possible and not worry as much about what bank it is.
www.EasyHUD.com has a resouce list of different lenders and the contact in loss mit.
I woas looking for personal experiences like mine, that I'll post.
Litton Loan: Got to the loss Mit dept after going through about 4 people. But they were trying. Finally got through, and they wouldn't budge on their lien at all. They wanted full payoff. They gave me the feeling of a debt collector on liens the bank had wrote off.
Probably not the easiest to deal with.
I was wondering the exact same thing. I've completed several short sales and I've noticed a difference between FHA and conventionals. The FHA loans seemed to be more willing to do a short sale. Some conventionals have been willing, but almost all FHA have been. I've also noticed that no matter how much repairs need to be done, they want to foreclose on a property if the owner "appears" to have equity. I am working on one now that is a conventional with Chase Manhattan and they will not budge. They got an exterior BPO of $224k and the payoff is $210k. The house needs at least $35k to $40k in repairs and they won't budge.(kitchen needs complete gutting, basement leaks, sub-floor rotting, pool is in horrible condition and dose not function, not to mention the paint/carpet and bathrooms: Basically needs to be gutted and start from scratch). I've sent color pics, nothing! and now they want me to pay for an appraisal. I'm wondering if they are just trying to get me and pay for everything they will need after foreclosure? Anyone have any solutions for a lender like this? As far as my experience, Washington Mutual (for the most part), Ocwen, and Bank One seem to be good to work with. Chase Manhattan, and some small lenders have not been. I look forward to see what anyone else has to say.
In reply to your chase Short sale, I'm working a short sale myself. They said the drive by BPO was high enough that they wouldnt budge. Then I told them about all the damages. I explained to them that I didnt thik it was in their best interest to foreclose on a property that needed so much repair expecting it to bring the drive by BPO price. They agreed and they ordered a walk through. Which came back in my favor. Keep on them about the inside conditions!
I would say "be persistant" I have seen where the same offer submitted several times has paid off.
One thing I really liked about C. Sheets was that he tells you to keep submitting the same offer over and over until they accept or sell to someone else.
When you submited your packet did you include all the usual? bids from contactors? hardship letter? proof of funds?
Good luck on this one!
[addsig]
I have done all of that, but no luck. They won't even budge unless they have an appraisal. I just think they want the appraisal so it won't be something else they will have to order when it is foreclosed on. Oh well.
every institution differs. we purchase notes and restructure/foreclose,etc, short sells, buy fsbos, and my primary task as acquisitionit is to put on the gloves and hammer it out with banks.
OCwen, Chase, Indymac are all hard to handle. they prefer to foreclose and go REO. There are some banks I refuse to deal with.
How are you finding the properties? many "courses" and "gurus" have created a sub-culture of instant gimmes and armchair professionals. All who buy the courses follow the same procedures. innovation is the key. Expand your contacts, do leg work you discover as you go along, and the opportunities will abound.
Just got a call on a great 2 story 4/2 in Kansas City Kansas in one of the better areas. Drove by, wrote down the address, went to the courthouse, pulled the assignments (it was obviously a foreclosure), stayed on the phones for 2 hours getting transferred from one desk to another, and finally got one of the monkeys on the phone instead of an argan grinder.
Comps are 70k. Estimate 30 in repairs (at MOST). A 52k note and am buying for $8730.00. Already have 2 buyers offering 22.5k
I had no competition here. The foreclosure is not complete. I looked and found the original borrower who is willing to sign a quit-claim deed for 100$ While out, keep your eyes open and write down addresses when you see overgrown lawns, boarded windows, trashed out front lawns, and no signs of life. While the others" are doing the same thing you are, you will be negotiating.
Also, don't hesitate to low-ball. My original offer was an insulting 2k, and my counter offer came back within 6 hours at 10k!!!!
By the way, this is the 3rd one this week.
tenacity, and originality, work. You have to be either the best funded, best trained, or ONLY ONE making offers to get the highest margins. Otherwise, all of Carletons tips are generic and diluted.
The most recent short sale I completed was with Ocwen. They were simply impossible. I had a house listed for over 2 years with no sale. Finally the owner stopped making payments and she got her NOD. I still had the listing and Ocwen refused to consider a short sale because they said the owner had too much equity in the property, based on the opinion of a BPO inspection. There were a ton of repairs that needed to be done and I disagreed wholeheartedly with the BPO.
Do you know who does the BPOs? Inexperienced green agents that have hardly any experience in the marketplace. The bank pays very little, like $50 for an exterior and $75 for an interior. New agents make a living doing these.
Anyway, I finally got a buyer who was also a loan officer. The buyer wanted to close in 2 weeks. Ocwen accepted the short sale after all that time, and all they wanted was a pre approval letter. We balance figures, I called the attorneys to put off the sale and it was pretty much smooth sailin after that. This was a conventional loan on a fairly large home that had the possiblities to be a triplex with a lot division.
jdc21 - go get the appraisal - make sureyou use an appraiser that you have a relationship with and make sure the appraisal accurately reflects what you are trying to do.
I had a proerty in June that I got 3 appraisals for - 1 for the short sale (at $90k); 1 for my bank (appraised at $154) and 1 for the morrtgage company that my buyer used ($145).
Yes the appraisal will cost you, but look at the bright side - if it supports what you want, it strengthens your position.