All Forum Posts by: Sean Dougherty

My question is:

In a short sale the owner in default cannot be provided any funds from buyer. It is illegal. But in this situation being that the personal rep is not the owner, and did not default, could I provide funds to him in order to convonce him to go through thr trouble of a short sale?

I see. Is there any restriction from me paying the p.r. for her services outside of escrow?

I am in negotiations with a personal representative of an estate to purchase a home owned by the estate. It would be a short sale.

I know standard policy of a short sale is that seller cannot be allotted any funds by seller or agents. Is the situation any different if the seller is not the owner of the home? Considering that they were not the ones that defaulted on their mortgage, would lenders allow a payment to personal rep for their efforts in transacting the sale (considering rep would not benefit in any other way by doing a short sale)

Or would bank provide any funds to seller for their part in selling the home?

It seems the bank would encourage the rep to sell home any way they could.

Bottom line is: What would be the benefit of a personal rep to sell a house via short sale?

Any feed back is appreciated. 

In escrow on a short sale as the buyer. A $3,000 credit card lien came up in title report. 

The seller cannot afford to pay off that lien. 

As the buyer what options do I have?

Would it not be in the 1st line holder's interest to pay off that small junior lien to allow the short sale to go through?

Could the credit card lien be forgiven or negotiated? If so who and how to negotiate?

Could I, the buyer, pay that lien separately? (would 1st lien holder allow that considering they are being shorted?)

Could I purchase property with credit card lien attached and then pay it off after sale?

Any advice would help. Seems a shame for a deal this good to go to waste over a small cc lien.

I have spoken with an heir/personal representative to a property which is in probate. Home is upside down. Heir is willing to sell to me via short sale but is wondering if she will receive "selling incentive funds" from lender. Will banks provide funds to an heir to the home in a short sale? Or will the funds go to the estate? Or will the lender not provide any funds at all?

She does not live in the home. 

Probate is still open.

Thanks for any answers or pointers.

Sorry for the long story but want to make sure to paint this picture somewhat clearly.

I am the buyer in this transaction. I have contacted home owner in default and worked with them for months to purchase their home. We opened escrow back in December through our realtor. 

Owner filled out all appropriate paper work in timely fashion, including hardship letter with proof of physical disability and loss of job. They surely qualify for short sale.

Full payoff amount is around $300k (legal fees etc. included). Home is in major disrepair. I had two separate contractors bid for repairs.  Repair estimate was for $70k. I submitted offer at  $215k all cash, as is, no contingencies. I attached both repair estimates by licensed contractors as well as my proof of funds.

Initially back in January we got a counter from loan servicer for $290k. We countered asking for a price evaluation as we felt that was too high. They did not respond for over a month. Finally after hours on the phone we find out that the loan had since been transferred to a new servicer. We got in touch with that servicer and now they will only accept a full pay off. When we asked about the value dispute, they would not give any answers as to if that was addresses or not.  

My questions are. 

1) I am sure the home is not worth anything close to $300k. And therefor the value dispute. Aren't they legally liable to at least address that request and give some documentation to support their price?

2)From the perspective of the seller: How is this fair to the seller. They are more than qualified as far as hardships go. There is no way the home will sell for the banks price. They are essentially forcing distressed home owner to foreclose even with a genuine hardship. Owner had previously received letters from bank in mail giving them information of short sale options. We went through everything they asked and gave bank an all cash offer. Is there any legal action the sellers can go through to push this short sale and avoid foreclosure?

3)It seems the only logical explanation is that the bank wants this property to foreclose. How could that be beneficial for them? 

Thanks for your time.

Existing note on home is conventional. My original offer was $205k, bank countered at $260k. Were dealing with fannie mae/homepath as investor and Ceterus is servicer. Does Homepath disclose minimum net? If not, how then to to dispute value? I know amount due on last morgtage payment was $255k. Can we request them to do another appraisal?

We have just sent in counter upping price a bit, also including accurate comps along with another bid from contractor and my proof of cash funds. Any other suggestions?

I have been working with a homeowner at risk of foreclosure for the last few months to transact a short sale. We submitted all appropriate paper work, hardship letter, signed purchase agreement etc. The home is in disrepair, so I submitted a repair estimate from my contractor for required renovations. 

Bank and/or investor ended up ordering a BPO and an appraisal. Since then they have countered purchase price. Price they have countered is much more than I feel the home is worth. Just down the road I have another short sale closing in a few days, same condition and square footage for 50k less than this Bank's counter. 

I am going to counter back. What could I submit along with my counter that may be effective in lowering their price? I have already gave them repair estimate, although I will resubmit that with my counter. Should I find my own local comps and include those sold listings? Anything else?  Thanks

If I can get trustee to agree to a short sale, will that be a possibility with the lenders. I say death certainly qualifies you for a hardship. Do lenders standardly do short sale in the situation owner has passed? What paper work would lender require in this situation? No tax returns or income docs available for deceased. What would be the process?

I am in negotiations with an owner (son of deceased) who has recently inherited a home through a living trust. Before the original owners (parents) passed away they had fallen behind on their mortgage. Now the property is in the hands of their son (the trustee). It is a few months away from foreclosure auction. 

If it forecloses will that affect the son (trustee)? Is he legally the new owner of the home? As far as I understand the property did not go through the probate process because it was owned in a trust. There is little to no equity in the home. Would it be beneficial for him to sell before foreclosure (via short sale)?  Or would the foreclosure have no effect on him?