Short Sale CASE STUDY: 017

New Buyer In Place

You can tell that spring is in the air in the Portland area because it only took a couple of days before we had 2 more offers in this property.

Both offer are from investors who know that there is a short of rental homes in the area.

This first offer was in and out in just a couple of days because his attorney advised him that he needed to restructure is LLC and hold off on buying any more properties in the near future.  This left us with 1 full priced offer from an LLC.

Remember that because this is an FHA there are a few bits of paperwork that need to accompany the offer that we are submitting to Wells Fargo.  We were lucky that [Read more…]

Short Sale CASE STUDY: 016

Back On The Market

As with so many short sales we handle, the first position buyer has decided that this is not the property for him.

When I first decided to use this short sale as a case study I was a little disappointed that it turned out to be an FHA short sale because I wanted this to represent what the average short sale looked liked.

I am pleased (or un-pleased) to say that this latest turn of events has really started to make this short sale look very typical.

Just Another Delay

If you are going to process short sales you ned to be prepared for [Read more…]

Short Sale CASE STUDY: 015

Short Sale Approved

 

For real this time.  :)

A couple of days after submitting the final documents the negotiator had requested we were issued the full approval.

This approval contains the FHA Sales Contract Review form and the FHA Closing worksheet signed and approved by the negotiator.  Wells Fargo also added another 5 pages listing a breakdown of acceptable closing costs, commissions and many other stipulations for me to review and share with the seller.

As I have mentioned in a previous post, there is specific language that MUST [Read more…]

Short Sale CASE STUDY: 014

Slow & Steady Progress

The last few days were met with slow and steady progress.  Not as fast as I would have hoped considering we have an offer that exceeds the minimum net the lender is requiring on this one.

Particularly frustrating is that we lost a few days of work while passing around a different version of the short sale affidavit that I had already had all parties sign.

I keep a full packet of the various lender forms on file so that I can have them filled out early in the process to avoid [Read more…]

Short Sale CASE STUDY: 013

Don’t Forget Jr. Liens!

When I first spoke to the seller he mentioned getting some State assistance to help him make his payments.  At first I just assumed that this was some sort of disability program because of his medical problems.

It turns out he was actually lent $20,000 and they placed a lien against his property to get repaid!  Truthfully this looks like a good program because it was interest free and the balance was reduced over a period of years until it disappeared (to make sure you truly used it to stay in the home). It was through the Oregon Affordable Housing Assistance Corporation.

Never heard of ’em…

FHA won’t allow more than $2500 to go a junior liens so this could be a problem. Will they accept a short sale? [Read more…]