All Forum Posts by: Mitsu O'Riley

FHA will do it. The problem is not all FHA lenders do the loan. I work an exclusively FHA lender (they don't do all the FHA does), and the purchase after a short sale is one thing they do.
I don't think this is only in Florida/Georgia, as they lend in many states.
As far as the FNMA guides, I'll look, but I think it is a minimum of 2 years, but usually someone after a shortsale can't qualify on everything else to get a conventional loan.

Lee,
If you feel this lady is pie in the sky thinker, and will back out if she can't buy something right away, then let her sit and think about it. If she can't make the payment, and you helped her from the beginning (answering question), she will come back to you, and it will be easier to get her to closing.

It is two years after a foreclosure. FHA can finance a new home right after a short sale, if the borrower never missed a payment (all other credit need to be in order too). If they miss a payment or a few, then they have to wait 1 year. Show timely rent payments, and qualify to buy again (all other debtors paid timely). This is not offered by most FHA lenders, but I work with one that does offer it. Minimum credit score has to be 620, and a good letter of explanation for the shortsale.

As far as the mom's hardship...maybe she can't make the payments on her house because they are much higher than she could afford. But maybe she can afford a cheaper house. The reason could be joss of job, and new job paying less. Who knows? Lee would need to find out. But either way, he's wanting to buy the short sale, not sell her another house. If she gets a loan, or has to rent, she is moving out.

Sean, on the resale and buy side you will have closing costs.
Why not let the agent give you the 25% of the commission towards the costs. It's legal, on the HUD, and more $ since (usually) thats off the top, before the broker takes their cut. Clean, simple, legal.

Hey Lee,
I suggust... get the autho, and verify she can qualify for a shortsale of her home, since she feels she can buy a different home.

Are you planning to keep the home, of flip it? If you are planning to keep the home, list with flat fee agency...costs about 1/2, and you do all the work.
If you are planning to flip the house, then list it with a good agent that can find an end buyer for you. You will want to talk to them about giving you concessions towards your closing costs so they aren't getting both sides of the commission. One that works with other investors in your area can explain how they can do it legally. The lender is paying the commission on the buy side.
Otherwise, you just have to look at RE commission as a cost of doing business, and should be in your budget.

As far as the seller buying another home, Jon is right in what he is saying. But, I work with a lender that will let a seller with a shortsale on their credit buy another home. There are restrictions and all that, but it is still available as an option.
Mitsu

Good.
Keep us posted on how it's going.
Mitsu

Hey, before you tell your agent you refuse to put up earnest money....
Some states require monetary deposit to make the contract binding.
My investors in FL do $100 - $500. Some do $100 at offer, and another $400 at acceptance by bank.
Also, tell the listing agent, "she's off her rocker" if she thinks the bank cares about the deposit. The bank is not party to the contract, and that is stated in the short sale addendum to the contract.
The other thing I'm worried about for you is if she is misguiding you, the buyer, on the short sale process from the start, then who the heck is going to get the bank to agree to your price? You need to hire a loss Mitigator.
Either way, you need help. Get a partner (experienced) to help you through the deal. There are some really good ones on here. You might want to work with one from New York to keep you legal, or your attorney can do that. Maybe Nick has time.

COuntrywide.....

Bank of America

Okay so a quick tip for CW to help not fly off the handle. No, it's not valium.... although as effective.
Most of the negotiators will email with you. Now, just to remember to read, edit, and then send. :)

Rumor has it....
Sometime in the last month or so (dec-Jan), Indy's loss mit dept pretty much walked out. The new team worked with the most put together files, as they could to get caught up. I had someone tell me their file was somehow closed after 4-5 months of working it.
you might have put the file together fine, but the actual file on their side could have been a mess. What would you work on?

You're right on the court steps price. I wasn't thinking of that...way past my bedtime....
On the otherside, the negotiator doesn't necessarily know that.
I would ask it something like this: "I wouldn't have this stipulation if I bought it at the courthouse steps, right?"

If they are insistent, check with your title company or closing attorney on if they think this is a legal stipulation on what you can do with th property after you buy it.

First step is to figure out if she wants to or even is able to keep her home. That is what the bank does. If she can keep it with her payments being lowered $200, then they can do a modification. I always to try to get the bank to agree that a short sale is the best option for the seller before getting too far along.