I have written before about short sales and probably about Chase. This company is one of the slowest I have had to deal with.
HAFA sales are supposed to be streamlined and go through a lot quicker.
We waited 2 months to get an approval to be a HAFA approved short sale listing. We got the approved price that was needed to be marketable. We put the home on the market. It was sold in 10 days. The contract went to CHASE where I was told it would take 10-14 business days for the final approval of the offer. It took 6 weeks to get that approval verbally! After a week of getting a verbal okay we got the approval letter which stated that property needs to close in 18 days from now. ARE YOU KIDDING ME?? Chase adds more work for itself. We now need to straighten out the timing to something realistic. I sometimes wonder about the IQ of the persons making the decisions for Chase.
I think some of us should go into Chase and straighten up the process!!
By the way, I did a HAFA approved sale through Wells Fargo in days after the contract was received by the negotiator.
What is this trend? Asking a buyer to pay money toward the seller’s 2nd loan. I am seeing more and more in the private remarks on the MLS “buyer to contribute $**K toward the 2nd loan”. I saw one last week that asked the buyer to pay $26K to the seller’s 2nd loan. I confirmed with the listing agent that is what they meant to say. It was! Continue reading →
There a many things that can turn a buyer off to a short sale. I would love for you to add your comments.
Gross dirty kitchens and bathrooms
Doors closed to the bedrooms – especially when other family members are in the house
Bedding on the couch
People lying or sleeping in bed
Light fixtures stripped from the home
Seller staying in the house while showing.
This really applied to all sales but really even more with a short sale as you need a buyer willing to wait for an approval for the seller’s lender(s). Think about it would you be more willing to wait that time for an awesome property or a dump?
Out of 6 short sales recently viewed by my clients only two looked like the sellers cared for the home. Those were the ones that caught their attention. That being said the staged owner occupied home really make it difficult to even consider the headache of a short sale.
What are things you see as a buyer you don’t like when in a short sale property?
Short sellers in San Jose are somehow missing the boat.
My client wanted to see 16 short sales properties. As someone that knows the pitfalls of short sales, I took to doing some research.
I began by emailing the listing agents on all my usual short sale questions – It has gotten to be quite a list – Checking out the seller’s hardship, the lenders involved, the deficiency involve, experience of the agent and motivation of the seller beyond the hardship, etc.
After I weeded out the improbable ones to close, most were shown “By Appointment Only”. First a comment about the weeding out the improbably ones, in Santa Clara County right now only 22-25% of the short sales complete with a successful sale. That means 75%+ don’t complete. Why waste a buyer’s time when most short sales have a 3 out of 4 chance of FAILING! Continue reading →
My client was told in July they were going to foreclosure auction in days. They moved out of the house. The home did not go to auction and they called me in October about doing a short sale. We got into contact in 5 days and had 3 offers – the highest was $20K above list. There were 2 Wells Fargo loans. After losing over a month going the HAFA route and being denied we were up against the wall time wise.
The foreclosure sale date was set for Jan. 2nd. Over the holidays we finally got 30 days to close and the foreclosure was stalled to Feb 2 (with no more extensions allowed). Wells Fargo was truly better than any other lender on a short sale that I have worked with. When it looked like we needed 1 more day on the 2nd approval (just in case) we did not close Wells Fargo Home Equity gave us another month.
The buyer on the other hand was out of control. Asking for $30K repairs, switching lenders mid-stream (and buyers agent chose not to tell me) and taking their time with new lender disclosure requirements. I can’t stress enough how the buyer needs to be willing to take coaching from advisors – namely the Realtors and not from “friends”.
We were lucky to have a title company (Old Republic) that did everything to pull off a miracle. Also the lender the buyers went to thanks goodness knew his job and helped too. He got the funder to suggest the loan package be deliver on the weekend to her house so we could fund Monday AM and record in the later afternoon. Even though all deadlines were off we still closed on Monday January 31. Today, February 2nd would have been the auction date.
Seller now only has a short sale on his credit but not a foreclosure. YAHOO!!!