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.
I had a buyer who was purchasing a two flat and I had explained to him the possibility of a lien being filed at the last minute to see if they could get any monies from the seller or the buyer for said lien. The lien was for $40,000! The seller's attorney knew about it but thought that because the lien was on the seller's name but not the property, it wouldn't hold. It did! So, what I did was talk to the title company, asked them to renegotiate their fees, the other agent put in some money, but I put out a good portion of my commission to make the deal work. The lienholder had five minutes before the property would be put into foreclosure. I told him either accept it or get nothing in six minutes! He took the money and released the lien. We closed.
If the lien was on the title and I, myself, as a Realtor, pull up title on behalf of my clients to make sure that there aren't any wild liens that could effect the deal and then he would be wasting money. I mean, I check the water, the gas, the electric, to see if there are any code violations prior to agreeing to a final price for my clients. These are things that should have been done.
The Bank will not reimburse your fees. Remember they are taking a loss as well. These are some of the risks involved in buying a short sale. However, if you are represented by an attorney who knows short sales, a Realtor who does short sales day in and day out, and you go in with knowledge, you stand a good chance of closing and not loosing.
Keller Williams Lincoln Square
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.
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."