Elizabeth Weintraub

If I were you, Belle, I would go one step further and prepare your own closing statement, which will give you a much better estimate of all costs involved, not only with the loan but in conjunction with the entire transaction.

Here is a link from my web site to an online printable closing statement called the HUD-1:

http://homebuying.about.com/library/bl/nhud1.htm

There has been much discussion among our lawmakers about making the GFE (good faith estimate) a document that needs to reflect accuracy, because each can be wildly different than another. Lenders aren't held accountable for their estimated costs, so I don't blame you for wanting to figure this out for yourself. You sound like one smart cookie. - Yesterday, 07:01

Hi Rosalyne: It sounds like a scam. You can't take over the payments without bringing the loan in default current, which could include many months of back payments and foreclosure fees. Having said that, let me also that if the loan is not in default, it would be possible.

Although no loans are assumable and lenders have the right to exercise the alienation clause by demanding full payment upon transfer title, nowadays most lenders are just happy to get payments from somebody -- anybody!

The question you need to ask yourself is how much is the property worth? If it's worth less than the amount of the mortgage(s) secured to it -- so much less that the existing owners are willing to deed it over to you and walk away -- why would you want it? - Yesterday, 06:55

Hello R. Mciver: I've just finished writing a book about short sales that will be published in January, and I interviewed agents all over the country, including Erin (who is excellent), because I didn't want the book to contain solely my own observations and experiences about short sales.

Every single short sale listing I have ever taken has received an offer, but I price them a little differently than other agents. For starters, I realize that a short sale price has 3 pricing components -- it needs to net the seller the highest price (especially if the seller will be facing a deficiency judgment from the second lender which, in CA, even with purchase money and a non-judicial foreclosure can happen), it needs to grab the buyer's attention and it needs to satisfy the comparable sale requirement the existing lender will demand. So, it's tricky.

As Erin pointed out below, some agents slap any old price tag on their short sale, which is plucked from thin air. You should hire a short sale specialist and an agent who will tell you the truth about comparable sales because comparable sales should be your guideline when selecting a short-sale price to offer. Otherwise, you will pay market value or above, and there are plenty of those on the market without going through the agony of waiting for a short sale approval / rejection. Ditto for REOs.

I had a Sacramento short sale buyer win a multiple bidding war on a short sale by increasing her offer to 10% UNDER market value and holding firm. There were 5 offers on this home, and it took her four months to get her offer approved, but she ultimately won the offer. I've had other short sale buyers win their offers because they were the last people standing when the war was over, even though their offer wasn't the highest. Buying a short sale is part strategy, part luck, part perseverance and part expert guidance from your agent. - Yesterday, 06:41

I suggest you hire an MBA. I work with a great CPA who is also an MBA and retired IRS guy. Send me an email if you'd like a referral to him.

I'd post his name and contact information here, but I'd still like him to answer his phone when I call, hahahaha. - Sun Nov 16 2008, 21:12

I suggest you hire an aggressive and knowledgeable real estate agent who can pull comparable sales and provide a good argument to substantiate your offer. Builders are hurting right now. An experienced agent can find out how much, whether other sales have been discounted, and guide you to making the right offer that will get accepted.

I've recently helped several first-time home buyers get absolute steals from builders. Not only did the buy under market and under every single comparable sale, but they received all the furniture in the model! But any good agent can do this for you. Just check their references, client testimonials and hire experience. - Sun Nov 16 2008, 20:45