Friday, January 8, 2010

This week in the news....

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What we know:

  • The new "bank" has the mortgage.  They are really a company that deals with bad loans and tries to clear them off the books for investors, so their job is to close this up (in our case, hopefully by getting this short sale completed).
  • The new bank also has the hardship package in their hands from the seller and they are currently reviewing to make sure they have everything they need.
  • Once they complete their review and they think everything is in order, they will take the package to the "investor" to get approval of the short sale.
What we don't know:
  • How long will it take to get an approval from the investor
  • How the second mortgage will be handled as part of this transaction
In any case, once we can get past this initial hurdle, which seems so close, then theoretically we can open up escrow for this deal. There remains some other hurdles of course (did I say that short sales were painful?).  Probably the biggest one is the appraisal from our bank to secure our loan.  While we are approved for the loan amount, the bank has to have an appraisal that will cover the loan from a loss perspective.  The challenge is that properties are so depressed right now that even our offer price could be high in our banks mind, so we'll have to see how that goes when the time comes.  Right now though our focus is getting that approval from the investor(s) that we can move forward.

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