Video 55: So you live in Tempe AZ and trying to get a loan modification or short sale from Indymac or OneWest. Do not hold your breath on then ever approving a short sale, it doesn’t make sense to them financially when the bailout they will receive from a foreclosure is bigger to them. H/T Patrick Pulatie I would love to hear your thoughts or any suggestions for future videos you have, you can leave a comment or e-mail me Dean Ouellette.
{ 4 comments… read them below or add one }
Hi Dean: Thanks for your informative video. BTW , does it change anything if there were 2 bank loans involved. I was told during foreclosure the 2nd bank get’s nothing and hence if there are 2 banks, the 2nd always prefers a short sale as comp. to foreclosure as this was the 2nd bank at least gets something. WHat do you think ? I am thinking of buying a short sale home with 2 banks involved.
thanks
Sam
Yes if a house goes to foreclosure, the proceeds from the foreclosure go to pay off the first then if anything left over the second, and in todays market there is nothing left over so the 2nd gets nothing. That is why I laugh when negotiating with 2nds and they tell me sorry we dont want the $5k, they dont have much of a leg to stand on, take the $5k or get nothing.
THere is an exception they can take out insurance on their own loans, but that is very rare
The loss share agreement with the FDIC and One West also covers short sale losses.
See:
http://www.fdic.gov/about/freedom/IndyMacLoanSaleAgrmt.pdf
So with that in mind, why do you think they are so reluctant to do a short sale?
We have been trying to purchse a Maui short sale for 3 months and One West is demanding the seller pay a $300,000 defiency. $1,200,00 sellers loan, property value about $1,000,000.
Thank you for taking the time to read this. We are embroiled in the One West mess. Our loan is Fanny Mae according to Fanny Mae but One West says they have the note. Long and short we are in Nevada and mediation did not prevail for all the reasons you know. In mediation One West said they will consider a short sale and will waive deficiency and gave us 60 days but if they foreclose they will not waive deficiency. How can we protect ourselves from them coming after us for the deficiency after they take the house which you know they are going to do in the end?