In my experience, Marc, mortgage companies have two tracking spreadsheets for your loan, one is the scheduled payments and one is the actual. When you pay on time and the balance becomes 78% then p.m.i. removal automatically happens. An issue arises when you pay extra principal and wish to have the p.m.i. removed before the scheduled 78% month. In this case you will usually have to pay for an appraisal because while your principal balance is not in question the lender wants to know the current market value of your property to show you have indeed reached the majical 78 or in some cases 80% plateu. Most lenders have the guidelines for removal of p.m.i. on their website, in one of your statements or you could call them. Best of luck... more
Why do you want them to foreclose? My suggestion is you need to work with someone who has experience working with banks - either a non-profit or a Realtor. I've helped many clients make that connection and get the dialogue going and would be willing to assist you (408-858-7199 or firstname.lastname@example.org). Have you received a notice of default? Which bank are you working with? Watch out for banks purposely limiting contact and/or stringing you along until they suddenly foreclose with little warning. Most importantly: you need to understand your options and the consequences of each - for this you need the advice of a competent accountant and a competent attorney. We all can tell you what we know based on our experience, but there are tax consequences, credit consequences, future claims against income and assets consequences (depending on whether you've refinanced) etc. You need to fully understand them all. Do NOT spend money up front with anyone promising miracles ESPECIALLY an attorney. They do not deliver. ... Wayne... more
By cleanout I guess you mean to clean the property after foreclosure in preparation for sale. Typically banks leave it in the hands of their Realtor to handle such items - though not all lenders are willing to pay. There are a number of well establilshed suppliers in the area who have developed relationships with Realtors and Brokers in an effort to develop this business. Some have joined local realtor organizations in order to come into contact with Realtors who have this need. One way of establishing contacts with Realtors is to attend open houses, but often the ones with many foreclosures are not the ones doing open houses. You can visit as many Broker offices as you can and leave promotional material describing your services. Or think back to the last Realtor that helped you buy/sell a home and see if they have any contacts. Good luck ... Wayne... more
The expirience is that firts offer get tired of watting and walk away.
Check with listing agent that new offers are back up offers.
Listing agent duty is to have a willing , pre approved and capabole buyer at Short Sale approval time.
Have you express a feeling of this is taking to long?
It depends, if you financing / mortgage has seen the Purchase Agreement / Contract might not be a good idea to change the terms since some lenders might see it as a red flag. Please contact your Home Mortgage consultant and express your questions about the price of the property.... more
Bottom line is the bank will lend based on appraised loan to value. You cannot loan for more than the house appraises for. The builder won't be happy about it, but he'll have to lower his price to appraised value if he/she want's to sell it.... more
Sorry to say most banks when negotiating prices do it verbally ( that doesn't make it right, it's just the way it's done ) What I would have my agent do is if the bank verbally gives you a counter offer and it is acceptable to you THEN put it in writing, or have the bank put it in writing to sign by both parties. This is how it is usually done.
I'm sorry to hear that you are being "jacked around", but that happens sometimes when dealing with banks.
I hope it resolves for you,
DRE# 01397256... more
To be frank, the listing agent may, indeed have an offer on the home that is pending approval from the bank. The only way to know for certain, unfortunately, is to work with a Realtor and to see the comments on the listing. Many times what appears on the MLS "public site" is not the same as what we, as Realtors, see on the same listing.
Work with your agent to determine what is really happening with the home that you'd like to see and buy. Incidentally, your own agent can get you into the home too....you do not need to work with the listing agent to see the property if it is still available.
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA... more
You claim to be working with an agent. Your agent should know what to do.
There really is no use asking anyone else.
Have your agent do their job, as this is just one of the many, many things we agents do.... more
I'm not aware of code violations being recorded on the title.
A code violation can be easy or nearly impossible to fix. For example, a homeowner may have added an additional bedroom or a porch to a home and it's not up to code. The two options are to bring the bedroom up to code by correcting the deficiency, or to remove the bedroom. Or a person may have added a second kitchen to a home and didn't do it to code. Again, the solutions are to bring it up to code or to remove it.
Some new construction near me was built in violation of code--it exceeded permissible height limits. They could have been brought up to code by lowering the roof by several feet (not practical), by tearing down the homes (not politically feasible), or by changing the code and the way maximum permissible height is calculated. (Instead of measuring from ground to rooftop, the code was changed to define maximum height as the "average" roofline height, thus bringing those houses into code.
Once you've determined what the code violation is, you need an expert in the right field (plumber, electrician, mechanical engineer) to advise you on whether the code violation can be corrected, and how much it'll cost.
Yes, code violations often are a big hassle to fix. But that's actually good; the fear of hassle scares lots of potential homebuyers away, and allows you to make a lower offer.
The simple answer is that you can do nothing other than cancel the deal. You are fully entitled to be angry about finding this out so late in the process, but have no other recourse.
I can't defend the logic, but I can tell you that this is the way it is, and always has been. It has nothing to do with the Bank, it is simply the policy of the PMI company which is a totally different entity.
Good luck, Bill... more
It comes down to trust. You MUST trust your agent. There are three markets tday. REO's, Short sales and Regular sales. All three must be attacked with different strategies. If you are offering below an approved price for a shortsale...don't waste your time. If you are offering way below a regular sale(50,000-100,000)....dont waste your time. Every agent today is aware of all three markets and acts accordingly. It still comes down to comps in all three markets. If you dont trust your agent, maybe it time to sit back and evaluate. I know you want to get a good deal today but some sellers instruct their agent not to even respond to "frivolous" offers. This might be the case.... more
PS, and Pending Show mean the same thing, it means that the seller has accepted an offer from the buyer but contingencies have not been removed ( it means the buyer could still back out) and the listing agent still wants the property shown and possibly get back up offers.( there could be a several reasons for this a few of them are: buyers finances don't look strong, inspections need to be done and buyer may back out if there is to much work to be done or the seller does not want to pay for it, there could be other reasons but those are a few).PR stands for pending release which means they are are waiting for the buyer to remove contingenies.(see above reasons).
As far as going after them, thats a yes and no question. If you have seen the home and absolutely love it, then you can have your agent call and ask the listing agent if it is worth your time to write a back up offer. Other wise, skip it just go after active listings, because if their deal falls through the listing agent will put the property back on active.
I hope this helps,
DRE# 01397256... more
Interesting question. I have not had an all cash buyer, but a lot of the time spent on the process is on the banks end of which you have no real control over. They need to get all info requested from seller, appraisal info, and are working on 100s of files. The bank might not even know they had an all cash offer until they reviewed the file which could easily be a month in itself. If the short sale has already been approved then you can close in approx 30 days with a standard loan and most likely faster with cash. Get inspections, check comps, etc and don't rush yourself.
There are a lot of factors involve in a short sale...process is never short. You need to arm yourself with a lot of PATIENCE. I was just wondering if that accepted offer is from the seller or the bank. Every bank works differently. I am currently working with a shortsale right now and I was informed that it will take them 20days to review it...some might even take longer. Basically the turn around time for short sale are about 4-6 months process. I heard if it is a wachovia lender the process of the short sale is 30 days. Good Luck!... more
A short sale is when a seller owes more on their home than it is worth. Pretty common in our current market. The seller has to submit a request to their mortgage holder, or holders, in order to complete the sale. Two mortgages, especially with different companies, complicate things a lot. The mortgage companies will have to take a loss. An offer to purchase is submitted on the home. The seller will accept the offer, and then it has to be sent off the the mortgage company for approval. This process can take several weeks, depending on the situation. The mortgage companies are very overwhealmed by all of the distressed property, short sales and foreclosures. You will have to sign a short sale addendum to the contract disclosing all kinds of info. Buyer Beware! The seller applying for the short sale has to submit a large package of info to the mortgage company. They want all knids of financial details, hardship letter, tax returns, income verifications, etc. It is a very complex and time consuming process. As a buyer, you have to be patient and have a real estate agent that you really trust. Also, working with an agent that specializes in short sales is imperative. They will have contacts with in the mortgage companies and they will be familiar with the process. You should be warned that the percentage of contracts on short sales that close is very small. There are so many things that have to happen just right, and so many things that can go wrong. You can spend months waitng for communication from the banks. If you want a good deal on a distressed property, you may want to consider pursuing a forclosed property. Many short sales that become forecloseures are listed much lower in price as a foreclosure. You have to be very careful with these kinds of properties, make sure you know what you are getting into. And do lots or research, ask lots of questions. And expect to have to do some repairs. A good Realtor is an invaluable asset in buying any type of home, short sales especially! Good luck to you!
Chris Mabry, SRS, e-Pro
Realty Executives Southern Arizona
In California Pre-Approved means you are fully qualified and that your loan is in place just waiting to be attached to a property. Now the chosen property has to be approved. That requires the Fully Signed Purchase Contract, The Preliminary Title Report, The Appraisal, and in some cases a Pest Control Report.
Pulling these things together may take a week to 10 days, at which time the loan is submitted to the Lenders Underwriter. A good Mortgage Broker will usually make sure there is nothing negative for the Underwriter to find and the loan will be fully approved within a couple of days of submittal. Purchase loans always take priority over refinances.
Unfortunately some Mortagage Brokers are better than others at managing all this and the submitted loan may returned with a requirement for additional documentation or clarification of some part of the package. A good example of this would be that your self employed Loan App was submitted with copies of 2 years tax returns, when this particular lender requires 3 years for self employed. There are many similar possibilities especially for the self employed.
You should at least be able to get straight answer in laymans language in the circumstances you describe.
Good luck, Bill... more
Lets Talk real estate, will help you through the short sale as best as feasible. Need to know all details, and speak with Lender/s before any promises can be made.
Sent you an email, all the Best,
Nina Daruwalla... more