Short Sale Pricing Discussion
- Thread starter Smiling JOe
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You make me smile.
Uncle Bob, is that you, are you my Uncle Bob?
There were 18 Lis Pendens filed in Walton County today. Is it easier to finalize a short sale agreement with a bank during foreclosure? Anybody know?
On Average:
What's recorded from the bank at the closing of a Fannie Mae short? Is it a simple Satisfaction? Have they been recording unsecured notes against the short seller in their primary residence jurisdiction simultaneously? What does it look like on a HUD1? Is there a seperate line on the Seller side for the relief amount, or is the full payoff amount all on one line? Are there 1099's from the lender to Seller issued at the same time? How does Realtor commission ;-) get shown on a HUD1 with a deficiency? Are costs of conveyance deducted from the Seller's (Lender) side at closing or do Buyers kick in? Have Lenders been requiring a Florida Rules of Civil Procedure 1.977 from the relieved party at closing? {They Should}
Which of you Realtors has seen any of this and can give us the 411?
Bump. Any Realtors out there know about the mechanics of a short closing?
Are you trying to make sense of a short sale still? J/K!
Every situation is different. Every short sale I closed last year the details were not worked out with the seller before the actual closing. Very odd. One primary home short sale, the seller received a 1099 for the difference. One received a letter from Country Wide 2 weeks after the closing saying no balance due. One worked out a deficiency of the difference 4 weeks after we closed. It still was considered a short sale at the time but the bank came back around and worked a deal. The commission always get negotiated down a percent it seems but shows up on a HUD like any other transaction.
They are not fun at all but if a buyer can hang on with no reply for 2-12 months they could be a good deal.
On the other hand, it is beginning to look like the foreclosure homes will make short sales look like a waste of time.
Are you trying to make sense of a short sale still? J/K!
Every situation is different. Every short sale I closed last year the details were not worked out with the seller before the actual closing. Very odd. One primary home short sale, the seller received a 1099 for the difference. One received a letter from Country Wide 2 weeks after the closing saying no balance due. One worked out a deficiency of the difference 4 weeks after we closed. It still was considered a short sale at the time but the bank came back around and worked a deal. The commission always get negotiated down a percent it seems but shows up on a HUD like any other transaction.
They are not fun at all but if a buyer can hang on with no reply for 2-12 months they could be a good deal.
On the other hand, it is beginning to look like the foreclosure homes will make short sales look like a waste of time.
Does the lender have to sign the HUD too? Does the closing occur in just a day or two like the average conventional? Does the Buyer get to take occupancy immediately after signing the closing doc's? Does the Title Company charge more for being the point guard in all of this?
The lender does not sign the HUD because they still do not own the home. They just approve the Short Sale/HUD. Once the bank approves the sale the closing can occur as soon as funds are in place and title is clear which is normally all handled as the buyer and title company have had months to figure all that out. The buyer can take immediate occupancy. The title company can charge a negotiation fee that the bank will pay. It tends to be the first fee that gets thrown out though. But, they still get their typical fees. When we were real slow the title companies were willing to do whatever to get the deals done. I would imagine with business improving some will be passing on being "point guard" on the deal.