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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] I don't think so... Posted by Ward-CA- on April 29, 2003 at 0:59 AM In Reply to: short sale? posted by Camille Calenda on April 28, 2003 at 4:19 PM : Hi Ward-- : Wanted to get your advice on if you think this property is a short sale candidate: : The NOD was just filed. The 1st is with Ameriquest and it's at 290K with backpayments of 11K. There is a prepayment penalty of 13K and the interest rate is pushing 10%. The property is worth 350K in perfect condition but this place is far fron perfect. The people are in bad shape...their phone has been disconnected, they are getting food from the community pantry, they have 3 kids and neither one is working. After figuring what was owed and what was needed to flip the property, we were left with 18K but that's not giving them anything. Even if we split the 18K it's still not worth it for us. And they are really stuck on getting 30-40K, which we tried to explain could not happen at this point. So we thought how about if we could get that loan amount down through a short sale. If we could prove to the bank that the house is not worth 350K in it's current condition (for instance, the entire back yard is grown in with this cactus type vegetation that the owners say they can't stop from coming back). Do you think Ameriquest would entertain a short sale or wouldn't they even consider it since on paper their appears to be some equity. Or if they file Ch. 13 will this at least waive the prepay penalty so we have more to work with?? : Thanks for you help! : Camille :) ========================== Camille, Ameriquest is a tough cookie to deal with. They had such a rotten reputation operating as Long Beach Mortgage that they shed their name like a snake sheds their skin. My guesstimate is that Ameriquest won't budge. They're owed $300K and their appraisal says it's worth $350K. So they'll feel they're covered in this Seller's market. Also, remember one last thing. Any lender who's asked to take less than what they are owed is going to want proof that the owner is getting NOTHING if the lender has to chip in with a discounted payoff. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward-- : : Wanted to get your advice on if you think this property is a short sale candidate: : : The NOD was just filed. The 1st is with Ameriquest and it's at 290K with backpayments of 11K. There is a prepayment penalty of 13K and the interest rate is pushing 10%. The property is worth 350K in perfect condition but this place is far fron perfect. The people are in bad shape...their phone has been disconnected, they are getting food from the community pantry, they have 3 kids and neither one is working. After figuring what was owed and what was needed to flip the property, we were left with 18K but that's not giving them anything. Even if we split the 18K it's still not worth it for us. And they are really stuck on getting 30-40K, which we tried to explain could not happen at this point. So we thought how about if we could get that loan amount down through a short sale. If we could prove to the bank that the house is not worth 350K in it's current condition (for instance, the entire back yard is grown in with this cactus type vegetation that the owners say they can't stop from coming back). Do you think Ameriquest would entertain a short sale or wouldn't they even consider it since on paper their appears to be some equity. Or if they file Ch. 13 will this at least waive the prepay penalty so we have more to work with?? : : Thanks for you help! : : Camille :) : ========================== : Camille, : Ameriquest is a tough cookie to deal with. They had such a rotten reputation operating as Long Beach Mortgage that they shed their name like a snake sheds their skin. : My guesstimate is that Ameriquest won't budge. They're owed $300K and their appraisal says it's worth $350K. So they'll feel they're covered in this Seller's market. : Also, remember one last thing. Any lender who's asked to take less than what they are owed is going to want proof that the owner is getting NOTHING if the lender has to chip in with a discounted payoff. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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