Central Florida Short Sales: December 2009

Hi folks. Just when I think I have this Short Sale stuff figured out I run across another issue that has the potential to really place my sellers, the buyers and the agents in a difficult quandary.

Yesterday I received a phone message from Chase in relation to a Short Sale we closed on almost two weeks ago. It went something like this "Hi this is Sarah from Chase calling on LN# 11324567. I am preparing the post closing package to send off to the Investor and noticed that I need the last 2 months bank statements from the Borrower. Please fax these over to me by the end of business today or I will return the check and close the file. Thank You."

YIKES!!! This call came in at 1:00 in the afternoon while I was out of the office. So needless to say I had to scramble to reach the Seller and luckily she was able to get the statements to me in time. I was lucky because my Seller was in the hospital but just happened to have her relative in town who was able to run around and get this taken care of.

The Buyer has already spent about $10,000 rehabbing since he closed on the property two weeks ago.

The frustrating part is that Chase had issued the approval and approved the final HUD for closing.

This has happened to me 3 times over the last few months. You know....I can understand the Lender requesting additional information after closing to complete a closing file but this threatening to return the check and close the file is really starting to piss me off. AND....they only give you a few hours to solve the problem after it took them 7 months to approve the deal.

So....I wonder what would happen if they did return the check and closed the file? The deal has already been closed so I'm pretty sure they can't undo that. Could they? Could they refuse to remove the lien even though all closing conditions were met? What do you think?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

Hi folks. Short Sales. Why do I spend so much of my time messing with these things? Isn’t it true most people are just doing them to avoid honoring their promissory note? They borrowed the money they should pay the mortgage. Deadbeats!

I closed on a Short Sale a few months ago. The Seller had owned the house for 27 years. It was the retirement home for him and his wife of many years. After 30 years of hard work they were finally able to retire and move to Florida, pay cash for a home and enjoy their twilight years together.

All went according to plan for 20+ years. Then one day Mrs. Seller was diagnosed with cancer. After several years of surgeries and treatments she finally had to be sent to a nursing home. Her husband, now almost 80, could no longer take care of her.

Mr. Seller was forced, by high medical bills, to place a mortgage on their home for $175,000. Less than 2 years later the money was gone and tragedy struck again……Mrs. Seller died.

Seeing his wife of 55 years suffer was just too much to handle. Mr. Seller, distraught, had a stroke. He too had to be admitted to a nursing home. He was 82.

Through all of this Mr. Seller still hung on and continued making mortgage payments. By the time I was contacted to help sell the property the value had dropped to $73,000. Instead of continuing to throw good money after bad he decided to go forward with a Short Sale. Deadbeat!!

I mess with Short Sales because real people need me.

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

Hi Folks. A few weeks ago I decided to start asking my past Short Sale Sellers to send me the Release of Mortgage notice once they received it from their lender after the short sale was completed.

I’m just getting started on my quest but have received several “Release of Mortgage” notices thus far. As I was reading through them I noticed 2 things that were the same even though the Lenders were completely different.

First they all state “…..acknowledge that it has received full payment and satisfaction, and in consideration thereof, does hereby cancel and discharge said Mortgage”.

And secondly the “Original Mortgagee” as stated in all of the releases thus far is……..“Mortgage Electronic Registration Services, Inc.” or MERS.

So whether the lender/servicer was Bank of America, Wells Fargo or Chase (the 3 notices I have received)  the “Original Mortgagee is MERS.

MERS, from what I understand, steps between the original Lender and the servicer. It acts as the nominee for the Lender and the servicer. Nominee: A person or organization in whose name a security is registered though true ownership is held by another party.

So when MERS is involved we have no clue who the true owner of the mortgage is. I wonder how this will affect Lenders going after a Deficiency Judgment in the future?

MERS is a privately owned company with some pretty serious players as shareholders.

Their mission is to…“Register every mortgage loan in the United States into the MERS System".

OK so what am I missing here? Does this company have way too much control or are they truly nothing more than a registration company? Help me out here. What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

Short Sale for sale in Poinciana Florida. 4 bedrooms 2.5 baths with over 2200 sq ft of living area on a huge double lot (.91 acre). Ceramic tile roof, Atrium, screened and covered rear porch, garden off the master suite, lots of cabinets in the garage, gated entry, security system and much more. Located 1 mile from SoliVita and 2 Championship golf courses. An incredible price of $95,000

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

Yep....7 months ago I submitted a complete Short Sale Package to Chase on April 27 2009. After many months of frustration I received another Chase Short Sale Approval yesterday. We are closing on 11 December.

You know sometimes I am left just scratching my head. This one should have been a no brainer. The Sellers are both retired and disabled. They were able to purchase this home in late 2005 using a $100,000 cash settlement they received from a wrongful death suit for their son. Their son had always wanted to live in Florida so they took the $100,000 and put it down on a house that was selling for $183,000.

Of course what they couldn't have predicted was that their daughter who was supposed to move in with them and help with the mortgage payment decided after living in Florida for 2 months that she didn't like it. So she moved, Mom and Dad were now stuck with a house they couldn't afford.

When I first met them they were very depressed and couldn't wait for a buyer to come along and pay them $150,000 so they could move back home. Their mortgage balance at the time was about $90,000 and they didn't understand that their property was worth far less. How could they be upside down on their mortgage already?

These folks had done everything "right". They bought a house that was priced OK and put 60% down. Who would have ever though that within 24 months their equity was gone. And this wasn't just paper equity that we hear about so often. It was $100,000 CASH!

I sure wish I would have met them before they placed all the money they had into a property. Telling people of this age they have lost everything is by far the worse part of my job.

Eventually I was able to get them to understand that all of their equity was gone. They needed to pack up and move back to NY to be with friends and family. So that's what they did. Almost 80 years old and having to start over while living with their daughter. My job is so sad some days.

And to make it worse. They told me the only reason they were even doing the short sale was so I could get paid because I was so honest with them. WOW!!! Incredible strength in the face of adversity. It's almost over Alline....I promise.

Location:

• Kissimmee Poinciana Florida

Liens:

• 1st mortgage with Chase for $100,000. They agreed to accept $35,000 (35% or what's owed)

• Seller is bringing no money to closing and is NOT siging a promissory note.

• Listed and sold by Tutas Towne Realty at $39,900 with a 6% commission.

Challenges:

• The biggest one was getting Chase to understand that these folks were disabled living on Social security and did not have bank accounts and did file tax returns.

• Keeping the same Buyer on board for 7 months.

And there you have it. Another successful Short Sale approval from Tutas Towne Realty. 

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved