Help QUICK with Country Wide short sale - Posted by Ken Hopkins
Posted by Ken Hopkins on April 26, 2007 at 21:27:05:
Just getting going with short sales. Have experience in multifamily rehab and condo conversion since 2000. Before that some single family rehabs. This short sale story will be on the long side and I’m sorry for that, but feel I need to give details to get the best answer.
I’m dealing with Country Wide at the moment (frustrating)! Property was orginally 100% financed with an 80/20. Country Wide has the 80% which is 182K. Owners can’t keep up with the mortgage and have decided to walk. They were more than willing to let me step in and negoitate with Country Wide to keep a foreclosure off their record. I have completed 8 condo conversions in this town and therefore know it well.
I submitted my short sale package with comps, hardship letter from owners, evidence of owners being behind in all of their billls, list of repairs totaling 65K-70K, the offer to contract of 92.5K and net sheet. Took 2 weeks for them to assign a rep. Rep requested I re-fax the list of repairs. Once I did that she called back and said they have the property valued at 217K, but would send and appraiser out. The appraiser came and I pointed out the problems and talked about the owners financial straights. The rep called within 2 days and left a message to tell me that the 92.5 was insufficient and I would need to be at 212K. HUH? I tried to call her back, but she would not return my calls. I knew 92.5K would not be accepted but 212K? Anyway, in this market a safe price to sell, after we obtain the property and rehabbed it, would be 185K. However, last year properties on the street sold for between 215K-229K in pristine condition. Comps in the last 6 months back up 185K maybe 200K in pristine condition. Since she didn’t return my calls I decided to resubmit today with an offer of 110K. In the 2nd package was information on the negatives of the town. It was ranked 60 out of 60 for best places to live in the county (which essentially made it the worst place in the county to live).
Sent the sex offenders list with 28 listed within a 7 mile radius. 5 within a 2 mile radius, additional comps to support 185K, forclosure rate for the state, article on the areas ecomony, school system rated very low on state tests etc. Rep called as soon as she received 1/2 of the the fax as it stopped halfway through. She read the offer only and wasn’t very happy. Said there was no way they would accept and offer being 100K apart. I reminded her of the condition of the property and although it is clean there is major work to be done. She asked to to re-fax repair list. IS SHE KIDDING? She also told me to hire my own appraiser, but the bank didn’t have to accept it. In the end she agreed to run the list of repairs by the appraiser for her opinion. I plan to submit another bid at 125K, but wanted opinons before I do. I did remind her that Country Wide only holds the first mortgage at 182K. That gave way to silence for a few seconds on her end. She then asked who held the second. I told her it was HSBC. Her reply was “well, you won’t be getting them to accept 1K for that they’re hard to deal with”! She suggested I call HSBC to negotiate with them first. I told her that since Country Wide hold the first and are foreclosing, we are trying to get through this before we go to HSBC.
Shouldn’t Country Wide just be concerned with the amount they’re foreclosing on? Help!!! Need advice on how to proceed. This woman must be having a bad day. Also said she didn’t care about the towns negative points, sex offenders in the area or the schools. It didn’t matter to her. The only thing that she cares about on the repair work is structual. Also said they like to resell to buyers who will live in the property. Oh well, there’s most of the story. Again sorry for the length.