Time Frame and Markdowns on Short Sales (loan, approved, fees)

[Lacerta]

This is not a "my short sale is taking too long" thread.

I'm trying to get an idea of which banks are taking how long to respond on short sales in this market. Also, which banks are accepting how much of a loss

So, did you make an offer on a short sale? Are you selling a house as a short sale? I want to hear from you.

1) Who is the lender involved?

2) How long did it take to get a signed offer?

3) How much of a markdown (either $ or %) did they agree to? (off the total balance owed)

[TristansMommy]

Originally Posted by Lacerta

This is not a "my short sale is taking too long" thread.

I'm trying to get an idea of which banks are taking how long to respond on short sales in this market. Also, which banks are accepting how much of a loss

So, did you make an offer on a short sale? Are you selling a house as a short sale? I want to hear from you.
Selling short sale. I basically todl them I need to do a short sale and asked for a short sale packaged. I fill out the information and sent them all they need accept for the actual buyer.. this way I'm already approved for the short sale.. They send out an appraiser so they know what the new market value is. I put my home on the market before they appraiser came .. I was a little shocked at how low hte appraiser came in at.. but I immediately lowered my price and I'm getting a lot of shows and have 2 offers and a person whose coming back for a second time tonight.

1) Who is the lender involved?

The "lender" is actually a group of investors manage by HSBC bank and the loan is serviced through Midland Mortgage. Obviously my mortgage was bundled and sold on wall street.

2) How long did it take to get a signed offer?
Once I lowered my price in line with where the market truly is based on the banks appraised value I got an offer within 2 weeks.


3) How much of a markdown (either $ or %) did they agree to? (off the total balance owed)

It's not based off the total balanced owed.. it's based off the appraised value that the bank comes back with. My hone was appraised for $120K than it was back in 2005 and about 70K less than I owe on it. The bank wants to get atleast 90% of the appraised value for the minimum offer they'd accept.

Each bank is working differently. For the offers I have the attorney prepars a Preliminary HUD to submit with theo ffer.. so the bank knows what other thigns they'd have to pay otu and what they will end up with after the sale (realtor fees, taxes, etc.) My servicer said ti will take 5-7 business days for the investors to give them the answer of wether they'd accept the offer or not.

I have to say Midland is pretty responsive.. I think more subprime lenders and holders are taking longer (mine is Alt-A and they dont' have any subprime that they service). But they are busy for sure!

[Michele19]

COUNTRYWIDE, NC. I put an offer in on a house in OCT, 08 and it is now Feb 18, 2009. They have told me so many times they needed 3-5 more days or I would be able to close in Jan of 09. As of today, they have ordered another compartive analysis, which they already did in DEC. This is absolutely ridiculous. No wonder why they have gone bankrupt!

[Norsky1]

First post here, this forum has taught me a lot already!

My wife and I just put an offer in on a short sale. It was accepted by the seller and is on its way to the bank. Supposively the sellers have some sort of "liasion" short sale lawyer person to speed the process up. Hopefully that is the case. It has only been 4 days since the sellers accepted so it looks like we will be waiting..

[Jediwookie1]

Countrywide is the bank.Paying the same price the seller paid 3 years prior, 119,000Started the process Oct. 21st 2008 and It's May 20th 2009.So 7 months so far.Quite the exercise in patience.

[vllygrrl]

AHMSI is the loan servicer. $375000 owed on mortgage. House listed at $314,900, we made an offer of $290000 on 3/23. Bank countered at $336000. We countered at $304000, and got verbal acceptance 10 minutes ago.

[chet everett]

Originally Posted by vllygrrl

AHMSI is the loan servicer. $375000 owed on mortgage. House listed at $314,900, we made an offer of $290000 on 3/23. Bank countered at $336000. We countered at $304000, and got verbal acceptance 10 minutes ago.

Any more details to share? Size/ location/condition?

Congrats!!

[vllygrrl]

Originally Posted by chet everett

Any more details to share? Size/ location/condition?

Congrats!!

Thank you - we're thrilled! It's an expanded ranch in Monmouth County, NJ, just under 2000 sq ft. 3 bedrooms, 1 1/2 baths, plus a brand new inground pool, deck, 2 sheds and a 20x30 bonus cabana building, complete with heat, electric, and cable. .82 acres. The former owner was a handyman, so the interior of the home is totally renovated - tin ceiling and hand mosaic floor in kitchen, marble floor in the main bathroom, huge built in wall unit in the living room, brick fireplace, new hardwood floors. There is a line of 100+ ft trees on the property that are so old you can look and see things like "Jim loves Kate" carved into the trunks but grown over with bark. It is truly our dream home.

We are using a 203k streamline loan, because there is a spot on the roof where the shingles blew off, and we need to replace some older windows. We know that the bank won't make repairs, and there are no appliances because the sellers sold them all. Small price to pay!

[chet everett]

Originally Posted by vllygrrl

Thank you - we're thrilled! It's an expanded ranch in Monmouth County, NJ, just under 2000 sq ft. 3 bedrooms, 1 1/2 baths, plus a brand new inground pool, deck, 2 sheds and a 20x30 bonus cabana building, complete with heat, electric, and cable. .82 acres. The former owner was a handyman, so the interior of the home is totally renovated - tin ceiling and hand mosaic floor in kitchen, marble floor in the main bathroom, huge built in wall unit in the living room, brick fireplace, new hardwood floors. There is a line of 100+ ft trees on the property that are so old you can look and see things like "Jim loves Kate" carved into the trunks but grown over with bark. It is truly our dream home.

We are using a 203k streamline loan, because there is a spot on the roof where the shingles blew off, and we need to replace some older windows. We know that the bank won't make repairs, and there are no appliances because the sellers sold them all. Small price to pay!

I have seen a few gems like the place you describe, very rare to get such a nice place at a "distress" price but some of the area just have so much "hay" that no one can be expected to sift through it for the 'needle'. I BET YOU SHOPPED LIKE MACHINES!!!

The other thing that strikes me is the "out buildings" -- lenders seem to hate that sort of thing, as that automatically makes it harder to value a place. I have seen the same pattern in other short sales. I suspect some lenders have a hard time even reading the appraisal report if it does not come in all "cookie cutter" and out buildings NEVER are present in a tract development. The lazy asset managers at the lenders ought to get a big 'thank-you' basket from you!

[TouchOfWhimsy]

So, did you make an offer on a short sale? Are you selling a house as a short sale? I want to hear from you. We sold our house as a short sale last month, after my husband lost his job last winter and we had to move across the country in April 2008 for him to start his new job. It took eleven months from the time that we first requested the hardship package from the bank, and over a year from the time that we first contacted the bank to let them know that we were having trouble due to a job loss, before we finally closed the sale.

1) Who is the lender involved? Wachovia, traditional mortgage.

2) How long did it take to get a signed offer? We requested a hardship package in May, got an offer in October, bank took too long to respond and the people rescinded the offer. Got another offer in December, same deal. Got an offer the beginning of March, and this time the bank agreed within 4 weeks, we closed at the end of April.

3) How much of a markdown (either $ or %) did they agree to? (off the total balance owed) They accepted just over $100,000 less than we owed. The appraisal fell $120,000 since we bought it in 2005.