Please read below regarding one of my friend's who has two sisters' working for Washington Mutual.

Be careful these companies could careless in some instances..........

Another anecdote for the soup:

My sisters' are service managers for WaMu's debt collections joint out in Santa Clarita and they both tell me that WaMU is still in the process of a huge ramp-up in response to the avalanche of people unable to pay their mortgages on-time.

BUT they are hiring more debt collectors in order to help facilitate the lengthening of the average foreclosure process.

When troubled borrowers are tapped out and their late mortgage payments start turning into no mortage payments, collectors hit them will all the possible options, of course, - refis, loan mods, post-dated checks - anything to get that promise to pay. But when borrowers say they STILL can't pay, agents transfer them immediately to the "loss mitigation" department that pushes them towards the short-sales option.

Nothing worng with that, per se, but it's interesting to note that once a short sale process is started, that same department, understaffed and usually unwilling to accept real losses on the property, can offer little real help to the borrower, though all together it can add months to the foreclosure process. At this point, my sisters' say, the loss mitigation department it's just another internal mechanism to forestalling and prolonging the inevitable foreclosure process as WaMu is incapable and unwilling to process large numbers of foreclosure.

And so they do what their bosses want them to do. And they stem the tide.

Thu Apr 24 2008, 19:04

It depends on that you agreed to in your contract. Call your Realtor , I am hoping you have a Realtor working with you on this. When in doubt call your Real Estate lawyer also.

Wed Apr 23 2008, 06:14

A letter stating this from the bank

Tue Apr 22 2008, 22:56

The bank will issue in writing acceptance of the short sale with any conditions, usually giving you 7-10 days to close. Inspections and appraisal must be completed quickly and close on time...

Tue Apr 22 2008, 22:49

When you enter into a short sale you assume the risk that escrow may not close and the costs associated with that happening. It is not uncommon for a short sale process to unearth unknown leans, or for a lean to be attached during escrow. People who aren't paying their mortgage often arent' paying lots of things. But most often there is an extension and either the bank acquiesces to the shorter payoff caused by the extra lien, or the seller is able to have some removed in exchange for unsecured notes.

Tue Apr 8 2008, 08:46

Unfortunately, there are just no guarantees until close with both short sales and foreclosures. Even a foreclosure can go almost to close and then have a title issue pop up. I have never seen the banks reimburse for a buyer's inspection in this case, either, unfortunately.

You can get a great deal with both short sales and foreclosures, but there is greater risk as far as your up front costs go.

I am sorry - wish I had better news for you as far as getting those costs back. I have been able to do it in one case when I literally had to submit a bill to accounts payable in the REO department, but it was touch and go on that one. Make sure also that there is a 22k filled out so that escrow is responsible for getting those final bills on the house paid before the ownership transfers to you.

Good luck!

Sat Apr 5 2008, 14:02

Carrie,
This is a great question. One that's answer can vary from one bank to the other. In most cases however a final approval won't happen until the bank has reviewed all the documents. This in most cases is right up to the closing. I have recommended that buyers understand that there is little control for them in this situation. You can back out of the transaction, but only if you have a real reason too(I don't want to advise you on this because I don't know how your contract is written) Several things can happen.
1. The bank may absorb the $7,500 loss in addition to the loss it is incurring because of the short sale.
2. The bank may ask you to pay this amount.
Again because I don't know the market value/appraised value. I am not sure how this would really work itself out.
One think I know for certain. The bank is not obligated to pay your fees for appraisals or inspections. This is just one of the hazards of purchasing a home in "pre-foreclosure."

Sat Apr 5 2008, 13:50