Denial Letter
Hey folks! I just got a denial letter for my short sale proposal. I'd like to present you with the numbers and ask your opinion on whether Ameriquest will deal on this.
BPO: "mid-80s" per Ameriquest
1st Mortgage with Ameriquest: ~$71k with fees and interest
Back Taxes: ~$4k
Payoff/Short of other liens: ~$3k
Repairs: ~$5k
ARV: 85-90k
My offer would have netted Ameriquest 50k.
In Wisconsin the home owner has a 6 month right of redemption BEFORE the house can go to auction. To me this means there is a lot of risk for Ameriquest because the home owner has the opportunity to occupy for 6 more months and may trash the place in the process.
I was told by Ameriquest that they would only accept full payoff for this property. Does anyone have any experience or advice on how to proceed?
Thanks,
jfalkreii
Perhaps your proposal wasn't sufficiently compelling... or, the type of mortgage precludes short sale as a non-foreclosure option. You should revisit/revise your Proposal and appeal their decision..
[addsig]
"or, the type of mortgage precludes short sale as a non-foreclosure option. "
SSP - could you give an example or explain a bit more.
Thanks
Brenda
not every mortgage can be shorted....
since mortgage loan servicing criteria can differ from loan to loan within the same servicing organization...
simply because you have a short sale success with one loan serviced by, say, WAMU, or Wells Fargo, or Chase... or anyone... doesn't mean that all the loans they service can offer a short as a workout option.
[addsig]
Unfortunately, banks believe the BPOs more than then they believe you because BPOs are supposed to be objective opinion of qualified broker. In this case since the BPO is higher than the amount owned, they don't see a reason to short(especially to $50k level). You HAVE to show them what is wrong with the BPO and what are they missing from the big picture, or else you won't be successful in this game.
Compwiz, that's very much true... but even with the most compelling proposal you may be beating your head against the wall if the mortgagee will not entertain a short sale. Sometimes, it's simply not within their power...
That's one reason to ask, up front, about their short sale criteria.
I have done a couple with Ameriquest. Both of them were successful. Both times, they came back with a similar scenario. For both of mine, the scenario they came back with is simply their opening negotiating position. Chances are, if you persist, you can be successful. But, be prepared for a lot of negotiating.
Also, if this is a mortgage that cannot be short sold because of the type of mortgage it is, then you may have success buying the discounted note. I have two other properties that I am negotiating with Ameriquest, where I am simply buying the note.
hi all
before even approaching the bank for a short sale is there any way of knowing by looking at any of the home owners mortgage papers if the bank will entertain or short or not.
does it actualy say it on any document????
amynewbie
Quote:
On 2004-08-12 20:22, amynewbie wrote:
hi all
before even approaching the bank for a short sale is there any way of knowing by looking at any of the home owners mortgage papers if the bank will entertain or short or not.
does it actualy say it on any document????
amynewbie
You will not find it on any of the mortgage documents. However, your chances of completing a successful short sale are greater with conventional loans. Many loans such as FHA are insured and thus are not affected by a foreclosure. In other words the lender and their investors will not lose out if the property forecloses.
Quote:
On 2004-08-12 20:22, amynewbie wrote:
hi all
before even approaching the bank for a short sale is there any way of knowing by looking at any of the home owners mortgage papers if the bank will entertain or short or not.
does it actualy say it on any document????
amynewbie
You will not find it on any of the mortgage documents. However, your chances of completing a successful short sale are greater with conventional loans. Many loans such as FHA are insured and thus are not affected by a foreclosure. In other words the lender and their investors will not lose out if the property forecloses.
Actually you can short sale FHA and VA, you just don't get as much of a discount. FHA only insures up to 83%, and VA is 87% if I remember right.
There is no short sale disclosure, or section in the note or other paperwork. You can only get this information from the lender when you make contact.
thank you for the response
amynewbie[ Edited by amynewbie on Date 08/13/2004 ]