Ok, I finally got approval from both Countrywide and Chase for the short sale. But I have the following issue:
Countrywide is only approving seller concessions of 3% and does not allow me the seller to assist in closing costs in cash or promissory note, otherwise any money I bring in at closing would have to go to Countrywide. The buyers are insisting on getting 6% concession otherwise they will walk away. I am trying to find a way to get that missing 3% if we can not convince the buyer to lower their demands. We initially thought about reducing my realtor's commission and transfer it to closing costs as realtor's concession. Then I would pay my agent outside but my agent says that is against the law and her realtor will not allow it. So we are stuggling to find ways to get that missing 3%. Some ideas we thought of are:
- ask the buyers to increase the loan amount and roll the extra 3% in there. They don't want to do it.
- ask both realtors to reduce their commissions but the buyers' agent does not want to give up more than $1000. That's too little.
I'm willing to do anything to get this done but I am tied by Countrywide's requirements. If anyone can think of a solution, please let me know.
Thank you for your feedback. - Sun Jan 6 2008, 12:38
I will most likely skip a 2nd payment and let it go to 60-day delinquent.
There is new development as of today: the first lender (Countrywide) has approved the short sale. They are telling me that they will offer the second lien holder (Chase) $3000 and will not negotiate with them (is that true?). I owe the second lien holder $99K. They tell me that I am to send the offer to Chase and negotiate with them to get their approval.
Can someone with experience with these negotiations advise me on how to negotiate with the second lender? What should I tell Chase and what should I expect? What if the second lender does not want to accept the $3000 offer from the 1st lender? Thank you for your input. - Mon Dec 31 2007, 11:09
While my short sale is being reviewed by the lender, should I continue skipping payment or should I keep making payments on the mortgage? I am currently 30-day delinquent (skipped November payment) and approaching 60-day delinquency at the end of December. Should I make a payment or not? I estimate the short sale to take another month or two. Thanks for your input. - Thu Dec 27 2007, 14:45
I am doing this with my realtor. We are learning as we go. - Fri Dec 14 2007, 15:03
The lenders have not approved the short sale yet. Countrywide just got the appraisal and BPO done this week. No word on the value yet. They will get back to me next week. Chase, as the 2nd lender, is simply waiting for Countrywide to contact them. I guess there is nothing I can do at this point but wait?
With regards to your post Lavy, I understand that I could be liable for the deficiency balance. But one step at a time. First I need to find out if the lenders will approve the short sale, and that's a big If. If the BPO is much higher than the offer or they don't think there is financial hardship, it's a mute point. - Fri Dec 14 2007, 14:00
Yes, I am the seller. The property has been listed for several months. Prices have dropped in my area (Prince George County). I am upside down. The pending offer is below the payoff amount. My real estate agent has no experience with short sales. I need help from a third party to go through the process and with negotiations. There are two liens, 1st with Countrywide, 2nd with Chase. I have gathered most of the documents required by the lenders. I know there are critical steps (put a good package together, show financial hardship, get a low BPO, get the junior lien holder to take a major discount, get the lenders to waive off the deficiency, etc...). I just don't have the time and expertise to do it. Please help. - Thu Nov 8 2007, 08:01
Fair Housing and Equal Opportunity