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Originally Posted by elgrancane  Hi. I'm in North Carolina and am buying a home that's under short sale with Countrywide. The seller's realtor finally got a hold of someone at Countrywide and they told her that the "short sale is now in Phase 2". Does anyone know what that means? Thanks
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Hi,
It means you have to wait for a little bit longer, my buyer waited from the day they made an offer on February 20, 2008 up to June 10, 2008 when the investor Fannie Mae accepted a Short Sale and they have to wait until the escrow closed on July 9, 2008, so it's about 4 months and 19 days wait.
When your seller's agent submit your offer,
CW will ask your seller to give them a letter authorizing them to talk to your agent regarding the Short Sale. When the Negotiator received the Short Sale package which includes HUD1 form, listing price, the contract and the seller's letter of authorization to discuss the Short Sale with the agent,
CW will assign a Negotiator and then order a BPO(Broker's Price Opinion) or the fair market value of the house.
You can check the recent sold homes in your area by going to
www.zillow.com to find out how much the selling price is or the recent sold homes in your area. If your offer is within 85 to 90% of the fair market value or the recent sold homes which ever is greater in your area,
CW Negotiator will recommend it to the investor to accept the offer.
Most mortgage homes has a Private Mortgage Insurance and
CW's PMI insurance is Old Republic. They will ask the seller to sign a promissory note to pay the balance owed on the 2nd mortgage and if the seller does not want to sign the promissory note, in my case I told
CW to foreclose the house and I rather file for bankruptcy than to sign the promissory note, then it will be very difficult to release the 2nd mortgage because PMI is not going to release it without the seller signing that promissory note.
Most of my buyers backed out due to long process and due to PMI forcing me to sign the promissory note in which I fought to the end not to sign the promissory note.
CW is better to deal with before than now that it is owned by Bank of America because Bank of America does not forgive the balance owed.
Hope this helps.