All Forum Posts by: Sean Dougherty

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?

Yes we are aware that may be an issue. The situation was that we could not locate the 2nd lender. The loan had been assigned to a bank that went out of business. It took us 3 months to finally locate the loan. So we submitted hud 1 in mean time and some how the 1st lender approved the price w/out the 2nd lenders info. So lets see where it goes.

Ok I got it. Thank you for those answers. New developments are, it seems that second lender will accept a minimum settlement without info of daughter. All they require are her signatures. Now we have to submit settlement amount to 1st lender to see if they are willing to pay. Any advice moving forward from this point is appreciated as well.

Lets see what happens. Thanks again.

just to clarify situation. Daughter has been cooperating to the extent where she has (relictantly) signed whatever docs were necessary. That is how we entered escrow and 1st lien approved sale.  Now 2nd lender is asking for daughter to qualify. (1st lender only needed mom to qualify and daughters signitures on all papers. They didint ask for daughters info.) I will try to convince daughter of the benefits of selling it short vs foreclosure, but i doubt she will cooperate. 

Not possiblt for a quitclaim to remove daughter from title? Seems that wouldnt be allowed simply for the purpose of removing owner who disqualifies the shortsale? Just an idea tho. Wanted to get some feed back.

I am in contract on a short sale. Long story short: 2 liens on property. Seller has qualified for short sale with senior lien holder and been approved. 2nd lien holder is more confusing. There are two names on property title and loan, mother and daughter. Mother has no problem qualifying for short sale. Daughter has had falling out with mother a decade back and has not lived in the home since then. She lives in another state and wants nothing to do with the house or her mother. 

1st lender did not require any information from daughter to approve short sale. 2nd lender is asking for daughters information and hardship letter etc. She has steady job etc. I believe even if I can convince her to send in all info, it will disqualify them from short sale. 

What options do I have? Can they do a quit claim deed and to get daughter off title?  Any pointers would be appreciated.

@Wayne Brooks, the second lien was owned by Beneficial Financial, who closed down all their operations in 2016. It took months to locate where the loan was transfered to, as we couldnt speak to anyone from Beneficial. That is why we are playing catch up. Borrower has not recived a bill on this loan for over a decade. She had forgot it even existed or thought it was released. It came up during title report at opening of escrow (back in November 2017) and we have just now located it. Ditech now holds the lien. 

Sps portfolio servicing is senior lien holder. They have approved the shortsale months ago and even approved the price. Crazy that they approved price without confirming or communication with junior lien holder. 

In any case,  that is why I am pushing for this one. I have an approved shortsale at a great price, just need to work with 2nd lien holder to get approval from them and we should be out of the woods. Consodering 1st mrtg holder will foreclose immediately if this shortsale doesnt go through, (they are postponing auction date so this deal can have a chance to go through) hopefully 2nd mrtg Ditech wont ask for too much and Senior lien holder will be willing to provide those funds without adjusting our approved purchase price. 

Anymore advice is appreciated now that my whole story has been told.

@Bob Floss II. Myself and my realtor are handling negotiation of short sale.  It's been a long road on this one. Too many turns to list here. Bottom line is after 6 months in escrow we finally were able to locate the second lien holder. Title company First American says they have no involvement in negotiations between 1st and 2nd lien holders. 

We already have submitted short sale package to senior lien holder along with hud1. We are in process now of submitting same package to 2nd lien holder. From what both banks have told us, they will not directly negotiate with each other. 

I spoke with 2nd lien holder via phone and they informed me they will require some payment to approve short sale. My main question is, considering first loan is close to foreclosure, why would the 2nd lien holder expect any funds from this short sale? If it were to foreclose they would get $0. So is it likely that 2nd lien holder will approve short sale with very minimum payoff so they could get at least something?