Posts Tagged ‘short sale’

Question: I just purchased a short sale home in AZ. GMAC had the 1st position and Indy Mac had the 2nd position. We signed and the short seller signed. The HUD was sent to title and it was registered and released. However, the short seller and broker says we still owe Indy Mac 15K and won’t get the home. Can this be possible?

Answer: -Sure, if that’s what you negotiated with them.  On the HUD it should show the amount each lender will be receiving.  The 2nd always wants something in order for them to release the lien or else it makes no sense for them to it.  They’d be better off letting it go to auction and hope someone bids past the opening bid.   The 1st typically wants to know how much the 2nd is receiving because they don’t want them to get anything, which is why sometimes it has to be handled outside of closing.

Question: Close to signing a short sale agreement between my first(Countrywide) and second(WAMU). this is a rental, Countrywide has settled, second will accept $7000 to release the lien, however they still want to come after me for the $93,ooo balance. Broker(advocate) was told that WAMU has already charge of the second as bad debt. Can WAMU sell the note to a collector that will still come after us for the full 93,000K. Been advise to try to settle with wamu at an agreed amount and make $100/MONTH PAYMENTS TO LIMIT LIABILITY. Any other questions to consider? If the house goes into foreclosure, Countrywide does a trustee sale are we finished with wamu too?

Answer: The best thing you can do is ask for a satisfaction of the loan.  Ask them how much they need to “satisfy” the loan.  Typically you’ll have to pay more for a satisfaction of loan, but they give up their right to come after you for the difference.   If they’ve agreed to “release the lien” then yes, they can and usually will come after you for the difference.  If the home goes to foreclosure, you can bet WAMU will file a deficiency judgment because it sounds like that is what they are planning to do anyway.  So, no, you are most likely not finished with WAMU.  The best thing you can do is try to get them to accept a satisfaction.  Good Luck.

Question: when buying a short sale home how long does it take to close?

Answer: - If you are the end buyer, the time it takes to close varies depending on how ready you are. It can take 3 days to 60 days depending on where you get financing and what they require. The transaction is the same as any other residential home. Typically with short sales, you’re just getting a better deal. You should be able to close within 30 days which is usually what the banks require once the short sale as been approved.