The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  • NOTICE! If you received MULTIPLE EMAILS from the forum today, please be advised that our monthly email system got caught in a loop and inadvertently might have sent you several emails. The problem has since been fixed and all Unsubscribe Requests will be processed within 24 hours.
  • It's back! As an INSIDER you can now SORT any thread by LIKES. See this post for more info.
  • Join 50,000+ entrepreneurs who are earning their freedom and living their dream.

    "Fastlane" is an entrepreneur discussion forum based on The C.E.N.T.S Framework outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED®). From multimillionaires to digital nomads to side hustlers who are grinding a job, the Fastlane Forum features real entrepreneurs creating real businesses with one goal in mind: Freedom— both financial and temporal.

    Download (Unscripted) Download (Millionaire Fastlane) Register
    Registering for the forum removes this block.

REAL ESTATE Dealing with C-Wide on Short Sales

hakrjak

Bronze Contributor
Read Millionaire Fastlane
Sep 15, 2007
1,978
140
88
Colorado Springs
Anybody else have horror stories of dealing with Countrywide on a short sale? All I can say is ouch --

I've been dealing with Countrywide on trying to buy a property via a short sale, and the experience has been pretty eye opening. While I thought that they would be desperate to unload this property, it has been a long hard slog...

1). They didn't get back to the selling realtor with an answer to my short sale request for about 45 days.

2). When they finally did respond to my offer, their counter offer was ridiculous. Apparently they had an appraisal done, and they thing the property (A dump) is worth a lot more than it is, because they are comping it to a fully rehabbed flip next door (One that I did and sold 3 months ago! LOL).

3). I submitted a list of repairs needed, and rehab required to bring this house up to the level they are comping it to -- but they just balked at my numbers, and still want way too much.

After wasting about 60 days of my and my sellers time, and I think I'm going to walk away from this one -- and the seller is going to walk away from their house, because they can't keep it rented, don't want to put any more money into it to make it nicer, and can't sell it for enough to cover what they owe.

Just thought I'd share...

- Hakrjak
 

Don't like ads? Remove them while supporting the forum. Subscribe.

AroundTheWorld

Be in the Moment
Speedway Pass
Jul 24, 2007
2,909
1,865
550
.
LOL

There is a place near us that came on the market - bank owned.

"At 199,000 it is a screamin deal" they said.

We offered 175,000 - as that would have been okay.

They countered at 189,000 - saying that is the lowest they would go.

We said no thanks.

A few weeks later they lowered the price to 195,000.

A few weeks after that, they lowered to 189,000 - and called us to ask if we were interested.

We will wait another month or two - and offer 160,000 :jiggy:
 

kurtyordy

Bronze Contributor
Aug 28, 2007
2,375
279
70
41
PA
Appraisors and realtors are still screwing up the deals. They are basing things off comps not considering current market conditions. I am waiting about 6 more months before considering buying REO's
 

andviv

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
Jul 27, 2007
5,419
2,186
625
Washington DC
Yes, similar situation with them...
In my case they took weeks just to send us the short sale package, and when they did they were asking practically full price.
In your case, how behind is the home owner? When the seller was 2.5 months behind then the bank started paying a little bit more of attention, but I ended up walking away from the deal.
 

tbsells

Contributor
Jul 27, 2007
304
57
31
Ohio
Its not just Countrywide. But, with all the problems they have you would think they would be pretty easy to deal with at this point. Most REO's in my market are listed at FMV after repairs. They are wholesale type properties listed at retail. Apparently it will take some time for the banks to figure this out. I have seen some bargains but not as many as you would expect. I think the time to buy is coming soon. In another 90 days or so there is going to be alot of REO inventory with 180+ days on the market. The sale is coming soon!:hurray:
 

Bilgefisher

Bronze Contributor
Read Millionaire Fastlane
Aug 29, 2007
1,849
283
73
Aurora, Co
I went through every almost every bank REO in my area this week. I found 18 properties listed at 40k or greater below FMV. I haven't made any offers yet since I am waiting on my current deal to close, but am I missing something here? Do they not accept offers of their listing price?
 

andviv

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
Jul 27, 2007
5,419
2,186
625
Washington DC
in your area what percentage of FMV 40K is? here that would be maybe 10%. Still not enough to make the property a real deal.

I met a guy that used to work in the loss mitigation dept and he told me the manager's paycheck depended on the amount of money he could recover for the bank. This guy would not have any incentive to move the property quick as that will trigger an immediate loss for the bank thus reducing his paycheck. His commission depends on what he does NOT move from the inventory, trying to recoup the most money possible out of the asset.

Does anybody here work in a loss mitigation dept so we can get more details about how they do their job?
 

Bilgefisher

Bronze Contributor
Read Millionaire Fastlane
Aug 29, 2007
1,849
283
73
Aurora, Co
in your area what percentage of FMV 40K is? here that would be maybe 10%. Still not enough to make the property a real deal.

I met a guy that used to work in the loss mitigation dept and he told me the manager's paycheck depended on the amount of money he could recover for the bank. This guy would not have any incentive to move the property quick as that will trigger an immediate loss for the bank thus reducing his paycheck. His commission depends on what he does NOT move from the inventory, trying to recoup the most money possible out of the asset.

Does anybody here work in a loss mitigation dept so we can get more details about how they do their job?
I suppose that makes sense. In my area 40k is anywhere from 70% to 80% FMV (at least on the houses I'm looking at.) I can understand DC being much higher. 200k gets you into a 1500-2000 sq foot house here on the front range.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.


Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom