ch.7 / Short Sale situation - Posted by Bobk

Posted by Bobk on June 13, 2006 at 22:58:42:

JT-IN,
I obtained the document from the homeowner, will do as you suggested and fax it to them tomorrow.
The appraisal and BPO went pretty good today( scheduled the appraiser for 4:30 and the real estate agent at 5:30) I made copies of my 6 page repair cost estimate and let them take one with them.
Thanks again for the suggestions!

Bobk

ch.7 / Short Sale situation - Posted by Bobk

Posted by Bobk on June 10, 2006 at 22:31:22:

I’m trying to negotiate a s.s.
The homeowner has been discharged from a ch.7 BK.
After quite a few phone calls and explanations about homeowners current situation , I finally got the servicer to understand that the mortgagor does not see any benefit in providing them with the usual financial or employment info they normally require for workout consideration.
One rep. told me to send a cover letter explaining same, the offer to purchase and net sheet.
So I did, along with some pictures.
I did manage to get a signed offer from the homeowner but that’s going to be about it.
So Friday I get a call from a local appraiser, he states that I am the contact for the appraisal at xxx street.
I say great, will see you Tues. 4:30.
I get back to my office and here is a workout package from servicer on my fax machine. Of course asking for all mortgagor’s financial info.
Keep in mind I have not heard from lender for a few days.
I left a message for the rep. to call me back 'cause I have some questions for him.(more explaining)
We are in Michigan. Has anyone had this experience?
Can someone give me some insight?
Am wondering if I even have a prayer, they must have looked at the offer if they ordered an apprasial. What do you all think?
Thank you
Bobk

Discharge of Bk - Posted by JT-IN

Posted by JT-IN on June 13, 2006 at 08:33:42:

As suggested, obtain a copy of the Discharge from Bk, (one page form, 2nd page is explanation of terms; Form 18) and attach that along with the letter that lender has requested explaining that Discharge has released Debtor from any responsibility for debt repayment.

http://www.uscourts.gov/bankform/form18.pdf

On the financial forms faxed by the lender, simply write across the forms in large print “Debt Discharged in Bankruptcy”. This is not to say that the gehius at the Lender who is working the file will comprehend the meaning of this, but that is part of you job to convey the message that, the Debtors circumstances in Bk have the exact same connotation as the Debtor being penniless… Should be a slam dunk, once you get the point across.

JT-IN

Re: ch.7 / Short Sale situation - Posted by Bobk

Posted by Bobk on June 12, 2006 at 22:15:30:

Thank you for your feedback.
I tried to contact the homeowner to at least submit a letter explaining that his BK atty. advised him not to give out any financial info. and "to feel free to contact my atty. concerning this matter"
I’ll do what I can to tighten up the details.
Thanks again!
Bobk

Re: ch.7 / Short Sale situation - Posted by hha8

Posted by hha8 on June 11, 2006 at 20:45:11:

The seller’s financial info should be available in the bankruptcy filing. Just do a search on his name in the bankruptcy files at PACER. http://pacer.psc.uscourts.gov You will need to register on the website and there is a fee of 8 cents per page.

Henry

Re: ch.7 / Short Sale situation - Posted by Max-Va

Posted by Max-Va on June 11, 2006 at 08:12:37:

You are running into the same thing I did early on. The fact is you need the sellers cooperation in order to successfully complete the short sale.
The good thing here is they will consider a short sale, and the apprasial or BPO (Brokers Price Opinion) is the key. You need to be sure to point out every defect that would lower the properties value. Questions about possible Mold and termites are good points.
The reason for the lender wanting the financials of the seller is they want evidence that the seller is not in position of making payments. For the lender to take a loss, it can not just be a convience to the seller. You really must have a hardship letter and at minimum basic financials. You need to try to get seller cooperation here. You may point out the negatives to the seller ie deficeny judgements, liens, lawsuites ect. they could face.
You have a shot here but you must tighten up the details. The lenders have a set plan and need certian information to do this, it is set in stone for the most part, without all the required documents you may be dead in the water.