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We closed today!

Discussion in 'Short Sale Outpost' started by Laney1, Feb 23, 2012.

  1. Laney1

    Laney1 LoanSafe Member

    Our short sale just closed. We are in California and had a BofA 1st, Greentree 2nd and a third. We orginally stopped paying July 2011 (big change in our income) and had to either go the foreclosure route or do a short sale. We decided to try the short sale.

    Our agent sent BofA an offer in November 2011, they countered pretty quickly asking for just a little bit higher price and the buyers approved. We thought the buyers walked at that point, but there was just a miscommuncation.

    Green tree accepted $4900 from BofA on a $80,000 2nd and the third is just a release of collateral issue. Both the 1st and 2nd will not pursue deficiency, we're in CA and both were purchase money. We had heard nightmares about Green Tree, but they approved right away. We did send Greentree a Cease and Desist letter as soon as we stopped paying because they will drive you crazy with harrassing calls as soon as you're late.

    They both stated they would report "paid in full for less than amount" on our credit.

    We had good RE agents working for us and it was really a smooth and easy process. We submitted our paperwork once and that was it. Other than reviewing the approval letters from BofA and Greentree, the only other thing we did was sign the final paperwork as in any sale. Maybe short sales are getting easier/smoother because there are so many?

    We're glad to have it over with. Best of Luck to everyone else looking to short sell!
  2. bburkemper

    bburkemper LoanSafe Member

    Congratulations, Laney! So happy for your successful short sale. I had hoped to be able to report the same thing after March 8, but ours is in limbo now, due to issues with the third lienholder. At this point, I really don't care what happens -- I'm just along for the ride! After more than three years of being "in limbo", nothing seems to surprise me anymore.

    So glad it's over for you! Congrats again!
  3. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    That's awesome news Laney I'm so glad to hear the short sale was successful!
  4. Laney1

    Laney1 LoanSafe Member

    Thanks Evan and bburkemper!

    bburkemper: Hang in there! A third isn't in much of a position to negotiate if you're under water. Hopefully, they'll come around!
  5. Goodtimes

    Goodtimes LoanSafe Member

    Congrats Laney1, This is good news!
  6. miked2023

    miked2023 LoanSafe Member

    Fantastic news! I'm looking to do the same thing with BOA (1st & 2nd only - both purchase money) and was wondering if you had to disclose your financials? I'm looking to buy another house with hard money to move in to while I'm sort selling and am concerned BofA will find out and decide we don't qualify for a short sale even though we did have a hardship. I'd love to hear more about your experience. THANKS!
  7. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    What state are you in? If you are in a non-recourse state and since both mortgages are purchase money loans there may be no benefit pursuing a short sale.. With a short sale you will be required to send in all your financial information just as you would with a loan mod.. Here is a great thread on the differences between a short sale vs foreclosure.

  8. miked2023

    miked2023 LoanSafe Member

    Hi Evan - thanks for the reply. I am in California so as far as I can tell I'm protected as they come, but I'm missing why there would be no benefit to pursuing a short sale. Since I'm buying again with hard money at a high rate, the sooner I can re-fi the better. Two years with SS vs. three + with FC would make it worth it to me unless I'm missing something? Since I am protected with non-recourse, etc, who cares if I have to submit my financials? All they can say is no, am I right?

    Unless DIL is basically the same as SS and they would accept one of those w/o question but from what I can tell those are hard to get and require financials that they'd almost certainly reject (I have a decent amount saved). Even still, perhaps I should ask for a DIL first, if they ask for financials should I submit them or just ask for SS instead? I know they'd want financials on the SS too but I think they'd be more likely to accept a SS with my financials over a DIL but who knows? I'm trying to pick the best strategy that will make this as painless as possible. A DIL would probably be that but is it out of the question? I'm with BofA but I belive WF holds the note (we weren't supposed to know that but someone let it slip during mod negotiations )- 1st and 2nd mortgage

    I'd really appreciate your expert opinion on this. Thanks!
    Last edited: Apr 24, 2012
  9. Goodtimes

    Goodtimes LoanSafe Member

    Hi miked2023,

    This is a great form and TomEason has been a great help. A LOT OF HELP!!! What is your hardship? I have/had a CA Wells Fargo non-recourse loan. Our hardship was a forced job transfer and we make very good money (no financial hardship).

    We chose to do a short so that we can say that we were never late on a payment and it won't hurt the credit as much, plus we can say that we sold our house and not walked away. I was willing to walk if the bank plays hardball, but I prefer to short. I have told my realtor several times that I have the upperhand with a nonrecourse and I don't want her to lose her commision, but I will walk if they want a promisary note or ask for too much (more than $1000) at closing.)

    So far the process has been great because I screened my realtor and the buyer has been patient. Accepted the offer approximately 2/21 and if all goes on plan we will close approx 6/15ish. I don't have the letters yet, but my relator said that they will likely waive deficiency and ask for no closing cost. So far so good and I am happy with my short...

    Also my realtor just told me that in March one of the agencies (maybe FHA??) allows people who sold via short sale to buy another home with NO wait time as long as they did NOT miss a payment, but they need 20% down. I haven't researched that yet.

    Read this post: Maplemissy went through a successful short sale, had late payments AND has credit at approx 720's now a couple months later: http://www.loansafe.org/forum/short...ceed-short-sale-hafa-drain-401k-new-post.html

    Good Luck, Goodtimes
  10. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    That is very true and you make a good point. If you are going to try and refinance your mortgage asap after buying the new home a short sale would be a better option then a foreclosure or even a DIL. With a DIL you may also be required to wait 3-4+ years before you will be eligible for a new loan/refinance.. You really have nothing to worry about as far as sending in your financial information goes because you are completely protected from any judgements whether you short sale or walk away from the home..

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