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Real Estate Dealing with C-Wide on Short Sales

Discussion in 'Real Estate Investing' started by hakrjak, Dec 12, 2007.

  1. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    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
     
  2. AroundTheWorld
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    AroundTheWorld Be in the Moment Speedway Pass

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    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:
     
  3. kurtyordy
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    kurtyordy Bronze Contributor

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    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
     
  4. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    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.
     
  5. tbsells
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    tbsells Contributor

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    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:
     
  6. Bilgefisher
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    Bilgefisher Bronze Contributor Read Millionaire Fastlane

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    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?
     
  7. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    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?
     
  8. Bilgefisher
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    Bilgefisher Bronze Contributor Read Millionaire Fastlane

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    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.
     

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