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A short sale in simple terms is when the bank agrees to accept less than the full amount and release the lien so the seller may sell the property. The property may or may not be behind in payments - so a foreclosure may not be eminent.
According to the HopeNow.com President Bush's agreement with 27 mortgage servicers agree to have answers to borrowers in 45 days (business days, not calendar days.)
CW has a new triage system as long as the foreclosure sale date is more than a month away - could have an answer to proceed or decline in 10 minutes!
After a foreclosure sale the bank is the owner, and accepts offers, until then it is the owner that signs offers to sell their property.
Local but official word is that CW is "de-emphasizing" short sales. Apparently getting a hard time from mortgage holders about proper fiduciary behavior. We read it as CW will say no unless the deal is too good to pass up. Be warned.
Ug, I could never stand CW. Trying to start a SS with them now, I've faxed in the package 3 times now, loan numbers on every sheet of paper, yet they still are missing 2-3 things...THAT WERE IN ALL 3 OF THE FAXES!!! I swear they like to "lose" paperwork just to purposely delay things for some reason.
I print a sheet of lables - the small address size (80 to a sheet) with the loan number(s) and while I am on hold, I slap one of the lables on each page as close to the top as I can get without covering any of the words on the page.
Just responding to whether it is easier to get the home in a foreclosure rather than a shortsell, a lot of times it is "easier" (note the quotes) to get the home in a shortsell rather than a foreclosure because the mortgage holder would rather try to settle the home and get as much as they can to cover the difference between what is offered and what they can get (that is where the term shortsale comes from) they would rather try to negotiate with an interested party, once it is in foreclosure the mortgage holder has foreclosed on that property and is now responsible for its upkeep and bills- which they don't want to do and once its in foreclosure they have to take what amount they get at auction with very little power to negotiate that price- so its in their best interest to try and settle while they still can- but it can take a lot of time for it to go through and a lot of the mortgage holders have a 30 day turnaround response to get back to you on it.
Your seeing a lot of shortsales now because a lot of homes were sold during the housing boom in the early 2000's, a lot were done with adjustable rate mortgages which now the interest has in some cases doubled and tripled the mortgages on those homes and people can no longer afford them, and now we have seen a drop in market prices for homes so that what the market can support in areas is less than what is owed on the mortgage-that is why you see the increase in shortsales and foreclosures.
On the upside it is a great time for first-time homebuyers to jump into the market as they are jumping into instant equity with a home as the market is starting to level out and will rebound, a first-time homebuyer can now afford a home. There is also the new first-time homebuyer tax incentive the president just signed..if you haven't owned or purchased a home in the last 3 years you are eligible for up to $7500 tax incentive when you purchase a new home right now- which is payed back in yearly installments of $500 per year- this is like a 0% interest loan that you can use or invest!
In our own search I'm seeing the opposite. It's seems much "easier" to buy a foreclosure. You put in a bid, the lender accepts one of the 10 or so bids they get, the lender lets the winning bid know in a few days, and you buy the house. The only difficulty seems to be bidding the right amount which is the same as with non-foreclosure and non-short sale houses. The frustrating part is you keep reading stories in the paper about the continued decline in prices yet we've been outbid (usually by quite a large amount) on every house we've bid on and we've been bidding asking.
Just want to chime in with one note on Short Sales. In this day and age, and given our propensity to overindulge, 2nd mortgages and liens are always a possibility, thus rendering the short sale iffy at best.
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