So at or before closing there is a Stipulated Settlement and Termination of the Lis Pendens for the Insurance Underwriters? I can see how lots of things could pop up to tie up that kind of closing.
Short Sale Pricing Discussion
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So at or before closing there is a Stipulated Settlement and Termination of the Lis Pendens for the Insurance Underwriters? I can see how lots of things could pop up to tie up that kind of closing.
It is mostly the bank getting back with you about a price. The rest can be cleared for the runway in a few days. Basically, the processors are overwhelmed and it seems no one is really in charge. I would think in times like this the uppers in big banking would be rolling up their sleeves and getting dirty. Perhaps, earning the big salaries. It just seems to be business as usual and they are not going to miss a vacation a holiday, etc.
...with all the slicing, dicing and financial engineering that went into off-loading the toxic mortgages into the market, in some cases the servicer is probably having a hard time finding the entity that will allow them to take the offer. They've probably gotta send their scouts out into the desert on a camel and into the rice patties of the Far East to contact the hapless souls who lent their savings to investulators in Florida.
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I never really thought much about that angle. Countrywide, et al are not the holders of the mortgage anymore as they become merely mortgage servicers. They can't just cut a deal with a Realtor because, they have to find the note holder and ask them for permission to permanently wipe out the "short debt".
The first offer is typically the best offer on a short sale. Down hill from there. Banks are losing money left and right because no system is in place. Its all good though because they are getting bailout money that we get to pick up later. Who really cares if they let the properties foreclose and get 1/2 of what a Realtor tried to give them 3 months earlier.
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Conspiracy Theory
OK, I'm new to all this, doing my 1st short w/Countrywide. Seller just got their Lis and the Mortgage was assigned THE DAY BEFORE. To "Random Bank Trustee for Certificateholders blahblahblah" not BofA. I'm aware that it is possible that the assignment wasn't filed in a timely manner and Random Bank may have actually owned it for a while. But I'm also wondering - could this be an attempt to circumvent the much publicized foreclosure "moratorium"? If you read the fine print, it only applies to loans that Countrywide/BofA still owns and whatever investors that they can get to agree to it. Am I being too suspicious and jaded?
OK, I'm new to all this, doing my 1st short w/Countrywide. Seller just got their Lis and the Mortgage was assigned THE DAY BEFORE. To "Random Bank Trustee for Certificateholders blahblahblah" not BofA. I'm aware that it is possible that the assignment wasn't filed in a timely manner and Random Bank may have actually owned it for a while. But I'm also wondering - could this be an attempt to circumvent the much publicized foreclosure "moratorium"? If you read the fine print, it only applies to loans that Countrywide/BofA still owns and whatever investors that they can get to agree to it. Am I being too suspicious and jaded?
In this market you MUST ALWAYS be "too suspicious and jaded," it keeps you on your toes and makes you ask the right questions.
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I like Shelly's advice but it would imply the bank has a plan. CW has no plan.
Lovethebeach2, I believe that lenders are heavily regulated by the Feds and are limited to a certain amount of investments (eg- real estate), compared to money on hand. In order to meet those requirements, some banks are having to sell off those "assets," so they will bundle and sell to other banks or entities.
UPDATE: We closed!!
After all the negative talk about short sales I'm happy to say the process was fairly quick and easy for us. I hope the best for everyone else out there dealing with this.
Offer on Feb 5th, Bank Accepted Feb 13, Closed on March 25th