03-22-2012 03:27 PM
03-22-2012 03:28 PM
04-08-2012 01:33 AM
Just wanted to update everyone following my process:
My hours at work have been increased thanks to a new supervisor who I have worked beside for the past 10 months. As of right now, I am getting enough hours! I also have an interview scheduled for Monday morning at a previous job just to pull in some part-time hours in case my current job drops my hours again. Also, I have other income that I didn't have them calculate, so, if necessary, I was told I can use it, so it seems like things are being situated and I have a backup plan in place.
Also, I received an email last week from my realtor that was a FWD from the listing agent. A BPO has been ordered! I'm unsure of how long this process will actually take, but it's been a month that I've been under contract. Anyone have any experience with the short sale process and where a BPO falls in it all? Property values keep decreasing here in Las Vegas. The listing price (which is what I offered and what was accepted) was in line with other homes that sold in the same division, but they all sold last year. If anything, I think the problem will be the price coming in lower than where we're at now, but I'm thinking it will be within a $1500 difference. I don't want to cover it out of pocket, and I believe the bank will adjust the selling price, but if I have to, I'll just pay the difference.
My boys keep asking when we're moving to our house and seem to be more excited than I am at this point. I think the issue with my hours at work took the wind out of my sails.
Also... The program that will be paying my closing costs and half of the down payment is moving on my file, too. I was contacted by my case manager last week to submit current check stubs and they're in the process of ordering their county inspection.
I have a friend of mine from back home who is closing on Tuesday and I'm really excited for her!! We started this process at the same time and it almost makes me wish I hadn't gone with a short sale! *sigh*
04-08-2012 12:21 PM
I do a lot of short sales, but I'm in Fl. Our process should be similar nationwide, but there are small differences I noticed when speaking with people around the country.
So remember, I close several short sales every month, but I only know how they are handled in Florida.
The BPO is generally ordered early in the process, after the bank receives the entire package from the seller's attorney/title co. Once the bank has acknowledged they have received everything, then they will order the BPO. Once the BPO is completed, the entire package and BPO get assigned to a negotiator. Some negotiators are better than others - pray you get a good one and your transaction will move right along.
How many loans are on the property? Do you have other complicating factors? Other complications include: past due HOA or condo fees; seller has had a BK (just means the trustee has to sign off); other liens including those liens for solar systems (they can be very difficult!) or other home improvements. Each lienholder has to give approval in order for the whole deal to get done. Naturally the jr lienholders get the least amount of funds. The lender in first position really drives the deal.
Once you have the BPO the negotiator approves/counters or rejects the offer for the servicer within guidelines given by the loan investor. Once the servicer (this would be Chase/Wells etc) approves then it goes to the investor for official approval. If there is MI, then it has to be approved by the MI company. Once you have lender approval and investor approval and MI approval, you get an official letter giving you the terms and conditions of the approval. Normally you have 30 days to close from the official approval date. That's why they put in a date in August 2012 so that there is enough time to get approval and to get your closing done.
Good luck! It sounds and looks like a terrific home! What a great price too!
04-08-2012 12:38 PM
From what the listing agent has told my realtor, and what I read in an email that was forwarded to me, there is only one loan out on the home, no MI, and all HOA dues are current. The listing agent had told my relator that this should be one of the "easier" sales. With that said, there's only 2 things I have to do be ready for underwriting, cancelled checks for the past year of rental payments and a LOE to explain a couple job changes and a period of unemployment over the course of 2008-2010 courtesy of the economy tanking. Was told that all should be fine though.
I live below my means, and even when unemployed, I was still able to pay all my bills on time and haven't had a single credit issue since the first part of 2007. They told me that actually looks good for me, that even through a hardship, and as a single mom, I still was able to and made sure that my expenses were paid on time.
He said that it will tell underwriter that I'm willing to fight to keep the house and do whatever is necessary to.
I really don't know what all to say in the letter though... I know it needs to be more than "Hey, the economy sucked and screwed a lot of people, myself included. All is ok though, I survived... and really really really want to be a home owner! The end!!" Think that'd work?
04-08-2012 12:56 PM
That is terrific news! Really your short sale should be a slam dunk since you have no other complicating factors.
There may or may not be lender paid MI, but no one will know until after the negotiator submits it to the investor. (Lender paid MI is on all of those loans that were sold in bundles as CDO's during the early to mid-2000's. But not every loan was sold during that time.). Don't worry about it. It sounds like you have everything well in hand.
As to the LOE's, your loan officer is an excellent resource to help you compose the LOE. Most of the time they just want something short and to the point.
Congrats for being able to weather the job changes without having difficulty making your payments. Staying below your means is a great thing.
04-15-2012 06:54 PM
04-18-2012 05:16 PM