All Forum Posts by: Wayne Brooks

Morris,
Just to be clear: these investors are not "buying the liens". The HOA's are foreclosing on Their liens, and the investor is the high bidder at the HOA foreclosure auction. There is generally a mortgage still on the property th's 50-100% more than the value of the house. It's just a matter of when, not if, the mortgage holder takes possession by foreclosure.

Do you have to? No.
Should you? Would you probably be better off with a Realtor on your side, that knows the area and not the one representing the seller? Probably yes. Your Realtor won't be so intent on selling you THAT particular property.

Will,
The short sale package, in addition to the purchase contract and your(buyer) financing preapproval/proof of funds, deals with the Seller's financials and hardship. After the Seller is reviewed for approval, then they order a BPO (broker price opinion) to determine value. The Realtor should meet the agent doing the BPO to provide comp.s and any repair estimates that You can develop to help justify the price. It helps if these repair estimates are also submitted to the bank with the initial short sale package, another reason for doing inspections after seller acceptance-not after seller's Lender approval.

Yep, Ned's right. You might file for Specific Performance, if your contract isn't dead. There is a specified time in the short sale addendum, after which either party can terminate, and a separate date where the deal automatically terminates without a bank approval, assuming you used the FARBAR contract/addendums.

Eddie,
I feel your pain. I deal mostly with sellers in short sales. If I don't think they're serious, or have any doubts about it, I'll pass as a listing agent. Sometimes they can fool you, but usually there are warning signs if you're dealing with them directly. Is it in Broward or Dade?

Tim,
I'd be interested too. I do some short sale negotiating. This situation, without the previous owner's participation seems to be a gray area. As far as I know, some lenders will do it, some won't. Some title insurance co.s won't underwrite these situations. Even with the lenders waiving any deficiencies, which would mean no liability to the previous owner, it's still seems dicey.

Ditto to all the above. Usually someone wanting to give you a QCD knows there is a problem/lien they are not payong off, and is hoping you don't realize you'll be stuck with it.

Dtto, and Ditto. Except when I'm buying quick with quit claim deed.

Hard money is not the same as cash. that being said, cash/wired to the closing is the same. You should have the HUD anyway. Unless you have points, or other fees being paid to your HML on the HUD, the seller's lender won't even know.

The response time guidelines only pertain to Gov't related and HAFA. The time lines mean essentially nothing. More important are the specifics of the deal-who is the servicer/investor, how many mortgages, liens, etc. The majority of short sales are delayed due to incomplete submittals, not following up, etc.