Home Buying in 92647>Question Details

Dan, Home Buyer in 92647

Obtain a loan directly from shortsale's Lender.

Asked by Dan, 92647 Wed Aug 4, 2010

I'm going to buy a shortsale property in Huntington Beach. The short sale Lender of that property wants to give me a loan. What are advantages and disadvantages to apply for a loan with the dirrect short sale Lender? Please advice. Thank you.

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Dear Dan:
Ask five people get five opinions, ask ten people get ten opinions. Get what I'm saying here. But most importantly ~ there is no such thing as a "direct short sale lender." Use your own bank or credit union (checking, savings, CD's, Etc.) as they know you...and you know them -- it's that simple!
1 vote Thank Flag Link Thu Aug 5, 2010
If the short sale lender is competitive with the rate and terms of the loan, it would be a good way to good since the lender will sometimes waive the appraisal fee and have lower cost in closing and in most cases can close in a shorter time frame.
0 votes Thank Flag Link Sun Mar 9, 2014
You can do it. I know that some lending institutions will try to get you to use them so that they can minimize their losses. Sometimes the will waive a formal appraisal and save you some money up front. As long as the terms and rates are comparable to other lending institutions, I don't see why you shouldn't be able to obtain a loan from them.
0 votes Thank Flag Link Tue Feb 25, 2014
As long as the lender is reputable and the terms are competitive with other options you have, I don't see an issue with this at all. In fact, I think this is something we will start to see a lot more of as a way for banks to minimize their loss.
0 votes Thank Flag Link Sat Jun 23, 2012
The color of money is green regardless where it comes from or if it's a short sale, so why not explore the opportunity and ask for a GFE (good faith estimate) and compare it to your own lender's GFE and select the one with the best value?

Best of luck, Be Safe and have a great day.
0 votes Thank Flag Link Thu Aug 5, 2010
I have never heard any short sale lender tell me that they would like the buyer to get financed through them or would give them any special incentives. It's possible this is just a suggestion by the listing agent.

You should only use a lender you want to use, however it's not a bad idea to also cross qualify with the short selling lender OR just another direct lender (i.e. BofA, Chase, Wells Fargo). So long as you also supply a statement showing proof of your funds for down payment, closing costs you'll be fine.

The extra special thing you should do, once you know that your offer has been accepted by the owner of record (mr. seller) and that ONLY your offer is being submitted to the short selling bank is to order your OWN appraisal & get it ordered from one of the direct lenders,,,turn in that appraisal to the listing agent to submit to the bank. If the short selling lender is a major bank, cross qualify with that bank & get your appraisal ordered by them.

This will help you out a lot & the short selling lender will probably bypass ordering their own valuations. Don't forget to have your agent show up when the appraiser goes over to the house to present your case for value.

562-430-3053 cell
0 votes Thank Flag Link Thu Aug 5, 2010
Hi Dan,

The advantages can be significant...but be sure and compare with other options to make sure. If they are a reputable company, they might offer extra closing costs, or free appraisals....lower interest rates for fewer/no points. Definately look into it!

Good luck with your home purchase....Congratulations!

0 votes Thank Flag Link Thu Aug 5, 2010
They may offer you special incentives as far as free appraisal or a lower rate. You should still compare with a couple of other lenders though to make sure you get the most out of your loan.
Web Reference: http://www.sellyourden.com
0 votes Thank Flag Link Wed Aug 4, 2010
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