If you are in the short sale game right now then you understand that lenders are playing hardball and it seems to be a nationwide challenge.
I recently took a 300K first down to 200K. Things were looking good! Then I had to deal with GMAC on the second. Shouldn’t be a problem, right?
Boy was I surprised when GMAC was not willing to do anything. After a long healthy conversation with the Loss Mitigation Supervisor I learned that GMAC will only accept a short sale that comes in at 95% of the market value.
Okay – you can stop laughing because this is not a joke. The supervisor AGREED with me that something today beats nothing at the foreclosure. He KNEW their policy was insane but his hands were tied.
What are my choices?
1) I could buy the note and finish the foreclosure. Tried that but the 1st wasn’t willing even though they get the same net.
2) I can continue to negotiate hoping GMAC’s policies will change – they may.
3) I can hope GMAC sells the loan to another lender then start over.
The reality is this deal is likely dead and I know it. Luckily I have honest direct relationships with my sellers so I informed them and they want me to continue. Time will tell if I get it through.
Tip For The Day: Short sales are a numbers game – do not get emotionally involved. Some will work, some won’t. Just make sure you can quickly prepare short sale packages. REPP does the job.
Now go buy a house!
Gerald Romine
PS – Things are changing at www.kickassrealestate.com. Check it out.
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