Archives for October 2012

Short Sale CASE STUDY: 006

Now For The Dirty Work

Yesterday Wells Fargo assigned 3 separate tasks and gave us until 6am tomorrow to get them complete.  These are the tasks I have been preparing for and why it is so critical to get all of your paperwork lined up in advance to avoid delays.

I will describe the tasks in the next few paragraphs but want to point out a few things first.  Remember that this particular short sale has an FHA loan in place that is being serviced by Wells Fargo.  The tasks in Equator are going to be different depending on who is servicing the loan and what type of loan is being serviced.  The following tasks may be different if [Read more…]

Short Sale CASE STUDY: 005

Back on Track and Waiting on the Lender

I am very fortunate to have a seller that is on the ball for this file.  He was able to fill out the requested information and return it to me in plenty of time to get it uploaded before their cut-off.

Again, most of the time these short deadlines are all fluff to get movement on the part of the agent.  But we don’t want [Read more…]

Short Sale CASE STUDY: 004

Our First Bump In The Road

So the existing loan is apparently and FHA loan.

You can read a previous post about FHA Short Sales to get some of the details regarding some of the unique characteristics of this type of short sale but the bottom line is that this just got a little more complicated.

Not harder.  Just a little more complex.

I didn’t want to do an FHA short sale as part of the case study because it adds that extra wrinkle that doesn’t apply to other short sales. But that pretty much sums up the nature of short sales doesn’t it?  You have to role with the punches.

Specific Language Required

FHA requires there to be specific language in both the listing agreement and the purchase agreement in order to complete a short sale. For the listing agreement it needs to have this language:

[Read more…]

Short Sale CASE STUDY: 003

Ready! Set! Go!

The listing went active and we received an offer on the same day!  I guess we are off to the races.  I wold have liked to have had more time to get the process moving through Wells Fargo so that our buyer doesn’t get impatient.  The buyer, however is an investor using an LLC so I think he will be willing to wait.

Analyzing The Offer AND Buyer

Having an investor as the buyer is great for a few reasons: [Read more…]

Short Sale CASE STUDY: 002

The Details

Every time I start a new short sale there are a few basic questions I want to know up front.  These questions help me determine the work flow, timeline, and identify any lender specific or program specific forms I will need to use to get the short sale moving. Here are some of the basic things we need to know about this particular short sale and how they will impact the process.

What is the Hardship?

A hardship is crucial in a short sale.  When asking the lender to take a loss on a loan it is important that there be a reason that the homeowner is selling.  Most people don’t consider the fact that if they would just stay put for 30 years the loan would be paid off.  There needs to be something forcing the sale.  A hardship.  In this case, [Read more…]