All Forum Posts by: Da Deep

Thanks, I haven't signed anything with the realtor I work with, so I should be OK there. I just spoke with the home owner. I told her that if I paid her money "on the side", that may amount to fraud, and that her and I could both go to jail for it. She came back with, "Since I don't have a realtor, I could consider that money as commission, since I am representing my own house" She's desperate for money and I'm desperately trying to stay out of jail at this point :mrgreen:

She said she'll talk to her RE Attorney and get back to me later today. baby steps....

The home owner doesn't have a realtor and she has explicitly stated that she does not wish to deal with realtors. This brings up an interesting point: I have a realtor of my own but have not signed anything with her. I sometimes go to see FSBO homes myself without involving the realtor and she knows that. If I end up purchasing a home on my own, my realtor will probably be pissed but I'm not legally bound to involve her in the deal in any way, am I? Just checking.

I'm treating this as a project, and yes, I'll definitely learn a lot from it, which ever way it turns out in the end.

Thanks for your comments, David. I'll get in touch with the bank tomorrow to move this along....but you're probably correct in your assessment that this deal isn't going anywhere.

"The servicer will not speak to the buyer without expressed written consent from the borrower."

Yes of course. The HO has faxed me a letter of consent. I'll fax it to BoA on Monday.

As a matter of fact, the servicer won't have any conversation of substance with anyone, concerning a short sale, without an accepted offer between buyer and seller.

What offer? The bank has to accept my offer. The seller just has to sign on the dotted line. The seller has already spoken to the bank and they're willing to do a short sale.

On another topic, If you pay her outside of closing you could be party to fraud. Don't let her desperation be your problem.

Yes, this is worrisome. I will speak with an RE attorney on Monday.

I can tell you that I've heard all I need to tell you (with 99% certainty) that you are wasting your time.

Yes I know only 1 out of 5 short sales actually close successfully. However, this property is worth wasting some time on, so I'll pursue it for a while. I wish the seller wasn't as whacked as she is.

As for what I want to offer, I'm just trying to get an idea of what to offer, considering the circumstances. I don't want to overpay and I don't want to underbid so much that the bank tells me to FO. This will be my primary residence; it's not an investment property.

"Finally, it's the right thing to do. Abandoning your obligations is not the right thing to do. "

Yeah but the woman is morally bankrupt too. I think she's devoid of scruples and besides, she's very very broke. She told me she's sold her jewelry, her possessions, her furniture..yesterday she sold her car.....she's in a world of pain right now...

Thanks David. Do post when you can. Apart from the difference in the negative effeft on her credit rating "short sale is like being hit by a bus; foreclosure is like being hit by a train" what else can I tell her in the hope that it will knock some sense into her? Right now she's saying, "If I don't get something out of this, I'll just let it go to foreclosure"

Thanks in advance.

Yeah the HO is somewhat nutty. It will be a few months before it is REO and I'm sure it will be trashed at that point. I'd like to get this house in a short sale if possible. How about I call her and tell her that I can't give her any money to walk away. If she agrees to proceed with the short sale anyway, I'll play.

>> How many mortgages are on the subject property?
Two. Both with countrywide. Total amount owed is 700k.

>> Who is the lien holder on the first?
BoA.

>> What is the balance on the first?
Don't know (yet). Total is 700k

>> Who is the lien holder on the second?
BoA.

>> What is the balance on the second?
Don't know (yet). Total is 700k

>> How long has the owner owned the property?
Since July 06

>> Did they receive 100% financing?
No, HO said she put down 150k but I think she's lying.

>> How many months behind on each mortgage is the seller?
5 months

>> How much did the most RECENT comparable sale sell for?
One home sold in 07/08 for 700k. One home is currently listed for 590k. THIS home in question will need 30k in upkeep - flooring and paint.

>> Most importantly, how badly does the seller want to conduct a short sale?
The owner wants to "get something out of it". She's saying if she gets nothing out of it, she'll just let the bank take it. If she can get 30k from me, besides what I negotiate with the bank, she'll agree to a short sale. *ugh*

She says she's already talked to the bank and they've allowed her to pursue a short sale. What amount should I offer the bank? 80% of Fair Market Value? I'm thinking FMV is 600k. 80% of that is 480k. What do you think?

TIA, Da Deep

Yes Mark, *I* do understand that. The seller appears to be quite clueless and wishy-washy so far. It is going to be an uphill task to close this successfully.