I'm Loosing My Short Sales........
Lost another today. GB. has the second and they say their 'insured' and insurance wants full or almost full payoff. (i offered 3500 then 5500) for a 25k note. The first is owed 105k and they accepted 96.5 providing the second only got 4k..
ques: how did GB get insured on a 25k note.. is this something special or ??
Losing shorts during the prequal phase is OK since not every scenario indicates short sale. But if you are losing them further along in the process, your methodology needs reassessment.
Who/What is GB?
The easiest and most direct way to find out what type of "insurance" they have is to ask them.
You don't indicate the property's as-is, fair market value, or what you did to obtain a short payoff from the first mortgagee.
If GB is unwilling to budge, why not simply buy the mortgage via an assignment, for cash, at whatever discount makes financial sense to you.
Then, as second mortgagee, you can agree to accept the $4K as payoff from the short sale.
GB is Guaranty Bank (GB Home Equity).
The BPO came in at 120k "asis".
1st accept 95k from 105k owed.
2nd offed 5500 but wants whole 25k owed. Seems that are insured for almost full amount. This is what I don't understand. How often does this occur.
Is the first GB also? It could be a hybrid combo 1st and 2nd covered by a PMI... but I'm just guessing. I haven't heard of an 'insurance' for a second... so you'll have to call, and ask them just what in the heck are they talking about. No harm in asking. The worst that would happen is that you call their bluff.... or learn something new.
The 1st is First Franklin and they were easy to work with but this bunch at GB are a pain. The 1st was ticked off that I was offering so much to the 2nd on a 25k note. I just never heard of a second being so insured and self-assured. They made it sound like they wanted 85 to 90%. There are only 4 weeks before sale date so time is short.
Next short sale: I had 2 kids that are being forclosed on and have already chap7 on everything. The bank Midland wanted them to fill out a distress financial report but the kids backruptcy attorney told them forget it. Your done with that debt so.... Midland wont go unless the kids do the financial.
Next Short sale: Dumpy 2/1 with carport converted into 3rd bedroom. Comps were around 60 to 70 for NICE well kept homes. This one needs ALOT interior and exterior. I bid 37k figureing 10k easy and 15k max to really put the home in tip top. Midland came back with a counter at 72k??? I think they must be talking about a different house!! I hope to find out by monday what the BPO was on this one and yes I was there to influence the BPO.
So screw the second completly, Buy the first short and foreclose. for the same $5,000 you offered them you can get the legal work done to foreclose them completely. Get a deed in lieu from the title holder.
That said this is still a pretty slim deal. only a 20% margin.
I just got off the phone with a 2nd that said they would take no less than full payoff which is only $9,500. However the loan have gone to collections. I shared with them the ole "When is goes to auction you'll get nothing so howabout something or nothing?" He said they would get their money from the sellers even if it goes to auction (didn't expand on how). I reminded him junior leins are wiped out at auction unless they purchase the house. He said,. "We'll see."
Am I missing something here? I will be going to auction to bid but is there something I'm possibly overlooking?
Jim
The Note.
While the mortgage is the security instrument that collateralizes the loan (secures the property), the mortgage note is the personal promise to repay.
Even if the mortgage is extinguished at a foreclosure sale, the personal promise to repay survives.
The creditor can pursue the borrower for repayment by garnishing wages, attaching bank accounts, or other assets (if any).
Settlement in Full is very different than Releasing the Lein.
My last 2nd on a SS had a principle balance of 70k. Wachovia would release the lien for 7k but wanted 65k for Settlement in Full. Since 65k was out of the quesiton, my seller agreed to the 7k to release the lien, knowing that Wachovia will hit her with a deficiency judgment for the difference.
I would guess that the 2nd thinks your sellers have the means to pay the amount owed. They will go after them with a deficiency judgment if it goes to sale, so see if your bank and your sellers would allow a release of lien only to make your SS work.
Brenda
Quote: GB is Guaranty Bank (GB Home Equity).
The BPO came in at 120k "asis".
1st accept 95k from 105k owed.
2nd offed 5500 but wants whole 25k owed. Seems that are insured for almost full amount. This is what I don't understand. How often does this occur.
So the 2nd must feel that they will get a chunk of their money at auction. Anything bid above 105k is theirs.
Chase kept telling once that they were protected. When I asked what exactly that meant, she said that because of the BPO they felt that they would get their money back at either auction or REO.
Brenda