Home Buying in 94598>Question Details

C. Gaines, Other/Just Looking in 94596

Is it possible to determine the loan balance{s} for a property listed as a "short sale" and to determine how many lenders have loans on the?

Asked by C. Gaines, 94596 Fri Oct 8, 2010


Help the community by answering this question:


Yes, work with an agent that is experienced with short sales.
0 votes Thank Flag Link Wed Sep 19, 2012
I wish lenders relied on on appraisals. I have had too many deals fall apart and almost fall apart over BPOs done by inexperienced, out of the area agents without enough knowledge of our market and true valuation of distressed and challenged properties.
Web Reference: http://www.ccshortsales.com
0 votes Thank Flag Link Thu Oct 21, 2010
yes, it is easy to determine it. Realtors can find that info for you if you do not want to contact the bank directly, since it is hard to get the right person to talk. Please give me a call or email me if you still need assistance to respond to this question.
if you are interested in the real and current market value of the property you are interested, I can tell you that many of the current tools used to evaluate values are not taking in consideration the real value of distressed properties, so please give me a call so I can provide you with a free evaluation of any property you are interested to buy in the Bay Area.
For the purposes of paying the right price, if any, lenders who approve the short sale are taking in consideration what is called a BPO (broker price opinion), which it is a real estate evaluation of the property in question.
0 votes Thank Flag Link Thu Oct 21, 2010
Hello C. Gaines,

Yes, it is possible to check what's due on a home. The seller can contact the bank directly and get this info as well as the listing agent.

Good luck..please make sure you are working with a knowledgable Realtor. We are all here to assist you or if you need an agent.
0 votes Thank Flag Link Wed Oct 13, 2010
It seems to me that what you are really asking is how to determine if the short sale is worth persuing or just a waste of time. The loan balance has little to no effect on chances of the deal closing or how long it will take. The amount of lenders does. See my full blog article on the site below -
0 votes Thank Flag Link Tue Oct 12, 2010
Hello C. Gaines

Finding out how many loans is easy any Realtor can find that out for you. if the property is listed most Agents
have the information regarding how many loans on the MLS. It does not matter how much is owed to the bank, the banks are looking for Market Value.
0 votes Thank Flag Link Mon Oct 11, 2010
Hi C.,
The long and the short of it is, get an experienced realtor to help you ask the right questions and navigate through the short sale process. With the new HAFA program, it may be a little more difficult than before but not impossible to get a short sale done within a reasonable time frame. The listing agent also needs to be up to speed on the process.
Good luck to you,
0 votes Thank Flag Link Sat Oct 9, 2010
The original principal balance(s), YES, it's easily done!
0 votes Thank Flag Link Fri Oct 8, 2010
I generally agree with what most people ahve said. i would only add that prepayment penalties and other unpaid "fees" that ultimately affect the short amount cant be know for certain. Title recordings will only give a reasonable estimate.
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Fri Oct 8, 2010
You can't determine the exact loan balance unless the owner tells you what they still owe since they could have been making higher payments than their mortgage required in an effort to pay the loan off sooner, and interest rates fluctuate. However, by looking at the date the loan was issued and the date on the notice of default you can determine how many months payments were made, estimate how much those payments would have been, and determine approximately what is still owed. Of course if there are multiple lenders this will become more difficult, and if a credit line issued there is no way to determine how much of it, if any, was used.

The second part of your question is quite simple. Since title, loans, notices of default, and foreclosures are all public record anyone can look up how many loans are on a property and who the lenders are. You can go to the county recorder's office and access all this information for yourself. Or, contact a reputable real estate professional, and they can access this data for you in a matter of moments.
0 votes Thank Flag Link Fri Oct 8, 2010
As others have pointed out, it is easy for a real estate agent to find out what lenders and loans exist and to get a good "ball park" figure as to the amount owed. The lenders and number of loans are very useful to know. Some banks are just totally non-cooperative with short sales, while others are great to work with. It is also worth noting that some banks move quickly and others hardly seeem to move at all. It can take many months to get a response. A second loan can also complicate matters.

But the loan balances are fairly irrelevant in the scheme of things. The bank will want the price offered to be close to their valuation, regardless of what is owed.

Bernard Gibbons

Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - bernard@bernardgibbons.com

0 votes Thank Flag Link Fri Oct 8, 2010
Usually an agent (listing agent) should be forthcoming about the number of loans and which lenders are involved. And, I'll add, they should be confident and experienced in their ability to deal with these lenders. If they are not forthcoming, personally , I think that's a red flag. Sometimes tax records will show outstanding loans on the properties, but usually not accurate. I am curious why the balances are important? I have people ask me that all the time, and some have heard that there is some formula the bank will accept... it's not true. Banks look at market value, the loan value has very little relevance to a buyer.
Web Reference: http://www.ccshortsales.com
0 votes Thank Flag Link Fri Oct 8, 2010
Records search may show the lenders and the original loan amounts. It most likely won't show what's to be paid off.
0 votes Thank Flag Link Fri Oct 8, 2010

1. Your realtor can contact the listing agent and ask who the lenders are (this is the easy part)
2. That listing agent may have already prepared the short sale package for submission to the short sale lenders, and that package should include the most recent statements from the mortgage companies that will also show the latest balances

Even if the information isn't readily available....

Your realtor can go to the MLS, click on the property information to see a history of when it was bought, how much was the down payment, and who the lenders are....then backtrack to determine what the interest rates were at that time......you can still have a very good idea of the mortgage balances that way, considering that in the early years of the mortgage, most of the payments are for interest and not the principal.

This research will also show if and how many times the property was refinanced (or when a HELOC was taken out).

Good luck!
0 votes Thank Flag Link Fri Oct 8, 2010
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