Need advice on potential short sale
Here are the particulars. 55 year old lady on disability income. 5 months in arrears or approximately $8k. Owes $153k+. Has been listed for 4 months @164,900. I have talked with realtor ( who is willing to give her an unconditional release) and Countrywide Mortgage. They both know this house could sell fairly quickly for 150 to 155k. The property is going to auction on July 1, but I am trying to push it back at least one month. All she really wants right now is enough money to relocate ($1500 ) and some more time to pack up. Any suggestions on how I can convince Countrywide why it is in their best interest to accept $110-115k?
Folks, this lady has been hospitalized 7 times this year. She had surgery on June 3rd and is really in no condition to move. I would dearly love to help her get out of this with a little dignity and enough money to start again. 
Hi there!
What kind of loan is it? Conventional, FHA? That may have effect on how this can play out with countrywide. On an FHA you would be looking at probably an 82% of the FMV. If you can get them to agree that the FMV is $150,000, you could potenially pick up this property for around $123,000.
Countrywide generally requires that the property be listed for 3+ months, but the good news for you is that it has already been listed. I would ask them to fax you the SS package (which theirs is about 13 pages) and tell them that you will have the homeowner complete the papers and you will fax it back to them within 24 hours. See if this will get their attention. They also may be more willing to delay the Sherrif sale if you can show them proof of funds. Hope this helps!
Best of Success!
BAMZ
Thanks for the reply, BAMZ. This is a conventional loan and is currently under review by the underwriter ( Freddie Mac). In a nutshell, my question is what is their motivation to short? The house is in immaculate condition and would easily sell on the retail market at $150k. At least, according to her RE agent who has 25 years experience and seems to be a pretty good guy.
The motivation that they have is that that they want to get money so they can relaon the money out. They are not in the RE business. Depending where you live, the foreclosure process can be a lengthly one. In MN, where I live, after the sheriff's sale, the homeowner gets a 6 month right of redemption. It then takes about a month or two afterwards to evice. If the homeowner files a BK that can delay everything even more.
Of course, the bank would LOVE to sell it for a profit, but they are always willing to talk to someone with cash...
Hope this helps
Hi AngelNDskies,
Thenewinvestor is correct. One thing that would benefit the bank is that they would be able to release any money that they had to hold back for this foreclosure property (sometimes up to 6 times the amount of the loan). They wouldn't have to wait through the redemtion period, they wouldn't have to list it for sale and have a team or agent handle this file until it is off of the books. It sounds like if you sell the bank correctly on these points that a short sale would make sense for them to pursue. Another thing thay may entice them is if you provide them (without them asking with proof of funds)
Best of Success!
BAMZ
Thank you both for your insight and support. We're going in! $105k on a $160k property. Most we will pay is $115.
We'll let you know what happens if anyone is interested.
my thinking is that the bank wont' bite but please prove me wrong...