Has Anyone Dealt With Option One? Need Help

Hi

I am working a short sale right now with Option One and I am having trouble getting any of my offers accepted. They mentioned today that they have an REO sales analysis that they run the offers through -- does anyone know of this?

The AS-IS Value from the appraisal they did came in at $158,500 with a fixed up value of $188,500. What number do y ou think is reasonable to offer on this???? I really don't want to offer more than $140,000 and would like to get it for $130,000 or $135,000 if possible.

Thanks in advance

Comments(20)

  • CSG_Indy14th December, 2005

    would finding this info out be as simple as asking the loss mitigator?

  • ashwin21st January, 2006

    I do not know you did or did not submit any supporting documents to arrive at the price of 35K. You need to appreciate the fact that the bank folks have to justify the sale at the lower price to their bosses. So you need to prepare the case which can convince them and their bosses.
    Secondly I think for 60K house 35K will be hard to get, right away, I think if the house is OK in the main floor they can sell it for about 70 to 75% of the appraisal, so you should be able to get it for 45K. In atlanta in some of the hot areas, banks sit on the house and try to sell at full or higher then the original price, so in your case the area prices are going up the bank will sit on it and make money.
    last thing, did you offer them cash ?

  • ContenderProperties22nd January, 2006

    I just submitted a short sale offer to Countrywide. Through comps I showed the value at $105k, and I offered $80k.

    I have been able to get the name and extension of the workout negotiator, but I havent been able to get her to call me back.

    How long does it usually take to get a response? Do you think the offer amount is reasonable(the property doesnt really need much work other than carpet).


    Thanks,
    Ryan[ Edited by TheShortSalePro on Date 01/22/2006 ]

  • Ruman22nd January, 2006

    I am confused. If you showed the house being worth $105k, why would they take $80k?


    Quote:
    On 2006-01-22 15:42, ContenderProperties wrote:
    I just submitted a short sale offer to Countrywide. Through comps I showed the value at $105k, and I offered $80k.

    I have been able to get the name and extension of the workout negotiator, but I havent been able to get her to call me back.

    How long does it usually take to get a response? Do you think the offer amount is reasonable(the property doesnt really need much work other than carpet).

    SSP - which material on this site is yours? I am interested in purchasing your course.

    Thanks,
    Ryan

  • ashwin26th January, 2006

    Ruman,
    Could you check whether the bank has put the house on MLS for the appraised value ? ( www.realtor.com may have it) Last year I bought a condo that the bank kept on MLS for good 7 months, slowly reducing the price. I believe they want to take their chance especially after the foreclosure is done, as the property may have become their own property, where they can make some profit. and even otherwise, their logic may be that at the current interest rate of 6% , waiting 6 month only would cost them additional 3%, so there is less incentive for them to negotiate. But i think if it is close to year end they want losing loans out of their books and they may negotiate. i wonder if anybody has any different experience, that they would like to share.

  • ContenderProperties26th January, 2006

    I justified my price of $80K based how much it will cost the bank to sell the property at the current value. If they have to go through the foreclosure process, it is very expensive for them and takes a long time. Not only that, the house will be vacant for a long period of time which introduces the risk of the property being damaged.

    $105k
    -7% commission
    -estimates for repairs to make is is sale condition
    -holding costs while it sells
    -cost of non performing loan while in foreclosure
    -holding cost while property is listed
    -cost of the foreclosure itself
    -etc
    =$80k

    The appraisal has been ordered and now I just have to prepare to get it where I want it.

    Ryan

  • Stockpro9931st January, 2006

    I took countrywide from 188 to 156 on a house that had a first and second and was worth 210 with 5k In repairs.

    Every SS is work if you are trying to get the bank to come off their price.

    I average 40K discounts on 1st mortgages in the price range of 125-200k. The seconds for about 20-25% of what is owed..
    [addsig]

  • Stockpro991st February, 2006

    Will do, I sincerely appreciate your input!

    Randall

  • Stockpro991st February, 2006

    One other thing that I will attempt is to get another appraisal on the property and to send in the contractor bids for repairs as an attempt to denigrate the 118K value that they are putting on the property. The one estimate I have was for 35K in repairs, that would put the value closer to 100K i think.

    If I can get the price down at all it will be worth the extra cost of the appraisal.
    [addsig]

  • TheShortSalePro1st February, 2006

    Try to get the original appraisal revised. By submitting the repairs info, and perhaps offering for consideration other more appropriate comparables, the original appraiser will amend his report, and resubmit to the loan servicer.

  • getitqwik8th November, 2005

    Offers them a quick resolution of their problem Getting Uhaul money to them legally can help them move. Can move to something they can afford and if they cannot afford anything they will have to try for some sort of government assistance...ie Section 8. The reason they see fit to stay is because they are AFRAID they cannot find another place. Many people facing these problems are not deliberately trying to NOT PAY the lender.

    One other thing about Bankruptcy, whether they go thru with it or not...it is the ACTUAL FILING of it that enters the credit record. Also on mortgage credit...THE question is ...have you ever given a deed in lieu of foreclosure or filed for bankruptcy?

    Remember you are a problem solver. Solve their problem of where they are going to live and they will listen.

  • bgrossnickle9th November, 2005

    I usually say that if they EVER want to own a home again, then they do not want a foreclosure on their record. That the foreclosure will be on their permanent record. And if you were a bank, would you lend to somone who has already had a foreclosure?

    Every person I have every spoken to hopes to own another home in the future.

  • bgrossnickle10th November, 2005

    I did not say credit report. I said permanent record. 50 years from now if you look them up at the clerk of the court, you will see the foreclosure proceedings. I am not trying to be tricky. Credit is just part of it. Most people in foreclosure do not wish for friends, relatives, business associates to be able to look up that they had a foreclosure.

  • mcole10th November, 2005

    Quote:
    On 2005-11-09 17:43, bgrossnickle wrote:
    I usually say that if they EVER want to own a home again, then they do not want a foreclosure on their record. That the foreclosure will be on their permanent record. And if you were a bank, would you lend to somone who has already had a foreclosure?

    Every person I have every spoken to hopes to own another home in the future.


    Unless I’m misunderstanding something, this seems very misleading.

    There are a LOT of loan programs for people who have had a past foreclosure. Especially if it’s been over 2-3 years.

  • bgrossnickle10th November, 2005

    I do not say that they can never own a home again with a foreclosure.

    If you ever want to own a home - you had better pay your bills.

    The above is a true statement. But it does not say that if you do not pay your bills you will never ever be able to own a home.

  • hlsrom7th January, 2006

    If you do the deed in -leau of foreclosure.........how is that recorded on your credit report??

    newbie here..... what exactly is a "short sale"?

    Thanks!
    Hlsrom (mi)

  • NewKidInTown37th January, 2006

    A foreclosure stays on your credit report for seven years.

    I have never heard of an institutional lender that will even accept a deed in lieu of foreclosure. If they did, I would expect the mortgage loan to reflect a charge off. How long do charged off credit accounts stay on your credit report.

  • FIProgress12th January, 2006

    Where is a good post or article that explains what a "deed-in-lieu of foreclosure" is?

  • TheShortSalePro1st February, 2006

    Are you saying that you purchase the property directly from the lender, presumably after the 6 month ROR?

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