Comments on: Short Sale v Short Payoff…What’s the Difference? http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/ News & Views: Real Estate in the San Gabriel Valley Mon, 12 Oct 2009 01:38:08 +0000 http://wordpress.com/ hourly 1 By: drdbroker http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-766 drdbroker Thu, 27 Aug 2009 01:17:59 +0000 http://drdbroker.wordpress.com/?p=111#comment-766 Not having all the details, I have no real answer, but a negotiator recently approved a sale and then came back and said the second lender wanted $3300 suggesting the other agent and I should contribute! I said no and explained why, also stating I did want the deal to go through. A few days later the deal was approved without the agent contribution. Moral for me is stand strong! It could well be a bluff. Remind the seller/bank how much it has to lose by letting the property go into foreclosure and how long it will take to get it off their books... Not having all the details, I have no real answer, but a negotiator recently approved a sale and then came back and said the second lender wanted $3300 suggesting the other agent and I should contribute! I said no and explained why, also stating I did want the deal to go through. A few days later the deal was approved without the agent contribution. Moral for me is stand strong! It could well be a bluff. Remind the seller/bank how much it has to lose by letting the property go into foreclosure and how long it will take to get it off their books…

]]> By: Leila http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-765 Leila Thu, 27 Aug 2009 00:40:49 +0000 http://drdbroker.wordpress.com/?p=111#comment-765 I'm a listing agent, doing a short sale, AHM is saying they will approve my short sale, prior to my sellers signing a promissory note, for 140K and 389.99 a month. My sellers declined, I don't blame them!! Can this be negotiated down? How do I work around this situation to get the lender/investor approve such a thing. The hardship letter is very strong and clear why he can't make the payments. Thanks. I’m a listing agent, doing a short sale, AHM is saying they will approve my short sale, prior to my sellers signing a promissory note, for 140K and 389.99 a month. My sellers declined, I don’t blame them!! Can this be negotiated down? How do I work around this situation to get the lender/investor approve such a thing. The hardship letter is very strong and clear why he can’t make the payments.

Thanks.

]]> By: drdbroker http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-762 drdbroker Wed, 29 Jul 2009 00:22:06 +0000 http://drdbroker.wordpress.com/?p=111#comment-762 So many complaints---the gov't is supposed to be working on that, but the banks don't seem very cooperative. Why do they need all that paperwork? If the sellers aren't paying and they aren't going to, why request tax returns, financial statements and so forth? Someone called me and said he had been in his house without paying his mortgage for 24 months and he was getting rent from a back house! Makes no sense.. So many complaints—the gov’t is supposed to be working on that, but the banks don’t seem very cooperative.
Why do they need all that paperwork? If the sellers aren’t paying and they aren’t going to, why request tax
returns, financial statements and so forth? Someone called me and said he had been in his house without paying
his mortgage for 24 months and he was getting rent from a back house! Makes no sense..

]]> By: Newbie and Question about short payoff/sale - Loan Modification Forum - LoanSafe.org http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-761 Newbie and Question about short payoff/sale - Loan Modification Forum - LoanSafe.org Tue, 28 Jul 2009 22:15:11 +0000 http://drdbroker.wordpress.com/?p=111#comment-761 [...] The link below will explain what is Short payoff and Short Sale http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/ __________________ Regards, Faith "Pay it [...] [...] The link below will explain what is Short payoff and Short Sale http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/ __________________ Regards, Faith "Pay it [...]

]]> By: Anonymous http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-745 Anonymous Tue, 07 Jul 2009 22:47:38 +0000 http://drdbroker.wordpress.com/?p=111#comment-745 That term "short payoff" sometimes means a short sale in which case you would be selling your home and moving out. However, it usually means a refi or a cash to loan payment. Are you negotiating with the bank yourself? If so, you must know what you asked the bank to do for you. If not, what did you ask your intermediary to do for you? For you to move out, you must've signed a purchase offer with a buyer. Did you do that? That term “short payoff” sometimes means a short sale in which case you would be selling your home and moving out. However, it usually means a refi or a cash to loan payment. Are you negotiating with the bank yourself? If so, you must know what you asked the bank to do for you. If not, what did you ask your intermediary to do for you?
For you to move out, you must’ve signed a purchase offer with a buyer. Did you do that?

]]> By: Sylvia http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-744 Sylvia Tue, 07 Jul 2009 21:04:13 +0000 http://drdbroker.wordpress.com/?p=111#comment-744 I live in Phoenix Az,and I am negotiating a "short payoff" does that mean I will lose my home and have to move out, or can I stay and continue to make a short payoff payments. Thank you for your time in this matter I live in Phoenix Az,and I am negotiating a “short payoff” does that mean I will lose my home and have to move out, or can I stay and continue to make a short payoff payments.
Thank you for your time in this matter

]]> By: drdbroker http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-691 drdbroker Wed, 10 Jun 2009 03:00:17 +0000 http://drdbroker.wordpress.com/?p=111#comment-691 n response to your question, I have no way of knowing if any bank would accept a short pay. The only way to find out is to ask. Most likely you would approach the bank with a variety of options, such as loan mod or short sale and settle on a short payoff. If your client has good income and good credit, is capable of paying her current mortgage and is current, many banks would not look at her situation. They are inundated with borrowers who have none of the above. To effectuate any of the options, your client will have to present a complete financial picture with 2 years tax returns, bank statements, pay stubs, the whole nine yards. Also, remember short sales finished this year incur no tax for debt forgiveness. A short pay, on the other hand, would be a "taxable event" for all the debt forgiven...in this case $110K or thereabouts.. n response to your question, I have no way of knowing if any bank would accept a short pay. The only way to find out is to ask.
Most likely you would approach the bank with a variety of options, such as loan mod or short sale and settle on a short payoff. If your client has good income and good credit, is capable of paying her current mortgage and is current, many banks would not look at her situation. They are inundated with borrowers who have none of the above.
To effectuate any of the options, your client will have to present a complete financial picture with 2 years tax returns, bank statements, pay stubs, the whole nine yards.
Also, remember short sales finished this year incur no tax for debt forgiveness. A short pay, on the other hand, would be a “taxable event” for all the debt forgiven…in this case $110K or thereabouts..

]]> By: lori Marotta http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-690 lori Marotta Wed, 10 Jun 2009 02:32:20 +0000 http://drdbroker.wordpress.com/?p=111#comment-690 I have a borrower that I would like to get a short payoff from AHMS...SHe owes 560K and with prepayment penalty and deferred interest from the first year she let it negatvely amortize, the payoff refi amount would be 610,000. The property was appraised @500K..SHe is full doc, excellent income and assets..recently divorced, She is Dr. and wants to see if I can get AHMS to accept a short payoff and allow her to refinance with an FHA loan on the 500K..They would have to eat 590K, assuming they would not even look at the prepayment penalty..Does anyone have a clue if this will be accepted..wants to stay in home, but right now is not worth it..She is in adj, and the monthly is becomng a noose around her neck..Credit score is great no lates and income is very good. What ya think I have a borrower that I would like to get a short payoff from AHMS…SHe owes 560K and with prepayment penalty and deferred interest from the first year she let it negatvely amortize, the payoff refi amount would be 610,000. The property was appraised @500K..SHe is full doc, excellent income and assets..recently divorced, She is Dr. and wants to see if I can get AHMS to accept a short payoff and allow her to refinance with an FHA loan on the 500K..They would have to eat 590K, assuming they would not even look at the prepayment penalty..Does anyone have a clue if this will be accepted..wants to stay in home, but right now is not worth it..She is in adj, and the monthly is becomng a noose around her neck..Credit score is great no lates and income is very good. What ya think

]]> By: drdbroker http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-652 drdbroker Fri, 08 May 2009 03:07:06 +0000 http://drdbroker.wordpress.com/?p=111#comment-652 I'll give you a call as you haven't given me enough information. :) I’ll give you a call as you haven’t given me enough information. :)

]]> By: robert http://drdbroker.wordpress.com/2008/07/15/short-sale-v-short-payoffwhats-the-difference/#comment-651 robert Thu, 07 May 2009 02:24:16 +0000 http://drdbroker.wordpress.com/?p=111#comment-651 I live in South Florida condo for 5 years. I bought it in 2004 when I was able to pay mortgage working as RE assosiate and Mortgage broker. Right now I am legaly blind and on disability since 2008. I applyed for short sale. The lender, American Home Mortgage, has approved short sale and reduced my mortgage from 800K to 669K, but even under this reduction I can not sale my condo. I would like to stay in my home with the family and get settlement (short pay off from my lender),What would you recommend to do in my case? Regards, Robert: 305-319-9804 I live in South Florida condo for 5 years. I bought it in 2004 when I was able to pay mortgage working as RE assosiate and Mortgage broker. Right now I am legaly blind and on disability since 2008. I applyed for short sale. The lender, American Home Mortgage, has approved short sale and reduced my mortgage from 800K to 669K, but even under this reduction I can not sale my condo. I would like to stay in my home with the family and get settlement (short pay off from my lender),What would you recommend to do in my case?

Regards,
Robert: 305-319-9804

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