The bank has approved one of the offers on Albacete. They want it closed by 4/21/08, just 10 calendar days. Thanks to everyone who put in an offer and wasn’t chosen by the bank. The seller and I really appreciate your interest!

with blessings,
Claudia

The BPO has been done. The bank should be ready to look at the offers. I will keep everyone posted!

No news today. We’re still waiting for a decision from the bank.

The Loss Mitigator has sent the offers on Albacete for review. We’re hoping for a response within 48 hours. An open escrow is getting close! I will inform everyone when I know which buyer’s offer has been accepted by the bank.

The bank has given their approval for a Short Sale offer on Albacete. Nothing is final yet. The top offer was made by a buyer who is uncertain if they will go forward with the purchase or purchase another house. I will keep everyone posted through my blog.

Remember–don’t give up when you make an offer on a Short Sale. Buyers often change their mind or purchase another house or just get tired of waiting for lender approval.

with blessings,
Claudia

Today’s Update–

I have no update! Summersweet currently has 5 offers. One is withdrawing because she is opening escrow on another home nearby. The bank has not sent out an agent or appraiser to give them a value on the property. Tenants are still in the home and amazingly cooperative with all the showings.

I will post updates as I get them.

Today’s Update on Albacete–

I currently have 4 offers. One came in today as a back-up. The bank’s Loss Mitigator has submitted the file for approval and has forwarded the recommendation to the Closing Department. The file will still need to be reviewed by a 3rd party (outsourced) for review.

I heard from my negotiators today that the file is presently being reviewed with Fannie Mae and, we should have approval by 4/2/08.

We’re getting close!

Here’s how I see the best bargains in today’s market:

#1 Short Sales where you buy the home at 70-80% of Fair Market Value regardless of what loan is on the property. You just have to be patient and be willing to wait 2-4 months for close of escrow.

#2 Auction where there are bargains, yet there is also a lot of competition, 5-10% Buyer’s premium and your final bid must be higher than the unpublished reserve price.

#3 REO or bank-owned properties can be a bargain, yet the bank wants to recoup their holding, carrying and fix-up costs.

blessings,
Claudia

[Just so you know…I posted the question about Short Sales since I received an email containing the question. The author gave me her permission to answer her on the blog for everyone’s benefit. CR]

I love your question! Thanks again for asking. You have the basics right about the definition of a Short Sale. (That’s a lot more than most people!) I’ll cover a few points below:

1. I don’t know all the details about your credit, income etc. However, there are some wonderful First-Time Homebuyers programs. FHA loans are back which enable the seller to help you with costs. Interest rates are currently low. Though you might want toi stick with your loan guy, it might be worth speaking with someone who specializes in government guarantee programs. I don’t do loans so I’m not biased. I know a couple of lenders and one in particular who specializes in these loans for First-Time Homebuyers. Let me know if you’d like some contact numbers.

2. I do have clients in a jam, but think this one through. I don’t know anyone who would do a quitclaim except with a close relative. You have no protection from a cloud on title, liens on the property, etc. It could be very risky.

3. While it seems logical to just “take over” someone’s loan, it might not make sense. For example, I have two Short Sale listings right now. On Albacete, the seller purchased the property last year for $619,000. We have it listed for $339,000. On Summersweet, he paid $575,000 last year and we have it listed for $393,000. Many people (perhaps most) in a jam right now owe more than the house is worth in today’s market. If you took over the loan, you would be paying far more than the house is worth! Would you want to do that?

Hi Claudia,
I’m curious- if people are in the process of short sales and such- wouldn’t it be easier for them to get a small down payment and have someone take over their loan or payments? If I understand short sales right- that’s when the person may be looking at a forclosure because they owe more than the home is worth and can’t make the payments (in most cases), or they HAVE to sell the home for whatever other reason (relocation) and don’t want to rent it out, etc and they still are upside down in the house.

I’m wondering because we would like to be able to get into a home and are working with a loan guy and it’s taking FOREVER… Anyway, we’re wanting to buy a home and I started thinking of ways to get into a house asap…if we knew of people out there that needed to save their credit from a forclosure and we could do one of those AITD things or quitclaim or what have you- then it would benefit everyone. Well, at least, in theory from what I’ve researched- it seems it would benefit everyone. Any ideas on that? Do you have clients out there that are in a jam and have a home that someone could “take over?”

I appreciate your reading through all of this! Thanks. M.C.