Newbie purchasing SS for residence

[K Murray]

Hello All,

I have spent the past three weeks reading all of your posts, and I am out of my league,lol. I have a couple of questions, very basic and was wondering if you could spare a moment or two of your time...

I have an offer on a short sale (MLS) to be used as my primary residence. Seller claims to be motivated, but 6 weeks later, he is still collecting his paperwork, should be in this week (heard that before). He has offered us the opportunity to move into the house, vacant for about 10 months, rent free. We have turned down his offer. He keeps telling us that he doesn't want to hold up the process. I realize that this might not got through, we have time to wait, but will not wait forever. I know that this will be my downfall.

There is one mortgage and it is with Bank of NY Mellon. How are they with turnaroubd time, from completed package to decision. Our offer puts the bank at about 70% return on their mortgage. In speaking to a colleague re: this situation (commercial real estate) she assures me that this is well within industry norms because the bank really doesn't want to own and she forecloses on collateral assets (held by banks) all the time and they have a tendency to play chicken with her. They assume that the she doesn't want to own it, because they don't, but her company has the ability to maintain and hold the distressed properties until a time when they can sell them for cash.

So I guess my main questions are regarding Bank of NY Mellon and their turnaround time. And if anybody has worked with them in the past. And anything else you can provide for me. My realtor and attorney are well versed in short sales, it is the agent for the seller that doesn't seem to want to push his client. My agent is coaching him. She is really working for her commission.

Thank you in advance for your time and consideration to my situation,

callie

[James Ward]

K,
To answer your question about a person in foreclosure gathering the requested "paperwork" is as follows. Most people in this situation have lost the desire to put forth effort into this situation. Most realize that they have "lost" the property, so why keep putting forth efforts for "nothing." Whether you agree with this or not, this is the reality of the situation. Also you will find lots are "poor" keepers of financial records.

Next, Bank of New York, is like many other Lenders. They are completely overwhelmed with the amounts of properties that are in default, and a serious lack of qualified negotiators. So, this could take months. Yes, months!

Do not look at this on the scale of your offer compared to what is owed. This is NOT how the Lender will be looking at the situation. The Lender will be looking at: market value, cost of foreclosure, holding costs, selling costs, and a few other items. So, your offer needs to be based on the current market value minus any items you feel will decrease the value.

If you have further questions, post then here and we will attempt to supply you with answers.