As we have discussed previously, a short sale requires a market price offer based on the ‘sold comps’ of that neighborhood. The servicer usually sends a real estate agent to the property to do an interior BPO or an appraiser to do a full appraisal in order to establish the market value of the property….

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As we discuss in this month’s newsletter, for the past several years BPO’s (Broker Price Opinion) have been the primary method that note servicers/note holders used to establish the short sale property’s market value.  The servicer might have ordered a more expensive appraisal for FHA and higher priced properties, but most of the time it…

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The normal short sale with my office usually takes between 45 and 90 days to obtain an approval.  The bank/servicer usually gives the party a 30-day window to close after approval. Some banks/servicers traditionally take longer and some take less time. Additionally, there are 8 steps to a successful short sale and we complete each…

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So you have your approval letter and now you are running into problems with the Buyer’s government backed loan.  Whenever you take on a short sale an important consideration is the Buyer and the Buyer’s loan.  For example, if the property is in unfit condition and requires some repairs prior to making it livable, the…

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So here we are again waiting to see if Congress will extend the 2007 Mortgage Forgiveness Debt Relief Act (Act) for another year. The extension came late last year because of the Fiscal Cliff negotiations. It was finally extended as part of the American Taxpayer Relief Act of 2012 which was enacted January 2, 2013. Why do we…

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In North Carolina the Short Sale Addendum allows the Buyer the right to unilaterally terminate the contract and receive the earnest money back at any time prior to the Seller notifying the Buyer of lien holder approval. If the parties have negotiated additional time for “due diligence” beyond bank approval then the Buyer has that extra time as well….

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So according to several whistle blowers that used to work at BOA, it turns out that the BOA reps in the Loss Mitigation Department were paid cash bonuses to shut files down and move them on towards foreclosure.  Shocked?  I’m not.  My staff just smiled and nodded when we read this.  That is because we…

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I know that we have talked about this before but since this is the “Year of Foreclosure,” it warrants an update and reminder. First of all we should remember that there is no right to a short sale and, by extension, no right to a postponement of the foreclosure sale.  We are essentially asking the…

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I have heard real estate law described as “happy law.”  That actually makes sense because in a normal real estate closing there may be some bickering over curtains but in the end the buyer is getting the house and the seller is receiving money. In a short sale, however, it is important to understand that…

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It is important to understand your servicer and investor guidelines before taking on a short sale with a 2nd from a smaller local bank or credit union. You may not be able to get there from here. We were surprised on a couple of short sales in the past two weeks because the servicer for…

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