Tualatin Short Sale Case Study #2

Location: Owner occupied Property in Tualatin Oregon

Total owed: $390,000 on Fannie mae 1st Mortgage interest only with one lien to deal with.

Home was listed in July 2008 at $485,000 and reduced to $429,900 in December 2008. This is when we were called in to help.

The hidden key to  short sales is discovering WHAT the loan type is. I am the C.S.I. guy of short sales. I concluded that this was a 80% LTV cash out refinance where appraisal came in at $487,000 back in March 2007 per prelim title. No monthly Mortgage insurance premium on Mortgage statement. (good!) It also indicated interest only payments.

I called and verified with the servicer and they confirmed it was a fannie mae backed loan and they were the end investor. It simply takes longer to unwind a fannie mae now government backed loan. From past experience they take 90 days to process and multiple BPO’s/ appraisals from loan servicers, fannie mae and in some cases from the mortgage insurance companies too.  NOTE : Please give end buyers proper expectations on good things come to those that wait. We have to get approvals from both fannie mae and the loan servicer. We had 5 valuations total on this deal….

one surprise valuation visit we couldn’t quite figure out where they were from… We joked it might be the special government task force for short sales  “men in black division” with dark sunglasses in January…give me a break

When unwinding a fannie mae or freddie mac government backed loan you need to understand the incentive.

Click here and focus on Page 10

where they receive $1500 bonus if 92% of NPTV…guess what $292,656 is 91.4% of final Sales price of $320,000.  (Interesting!!)

So here are the final numbers:

Client owed $390,000 on the 1st mortgage they accepted $292,656 ( $97,344 LOSS)

6% Commission Approved realtors are happy! Buyer was also excited to receive $7,000 for her closing costs and prepaids and an outstanding property at a real discount! It took 5 months to close with multiple threats from buyer to pull out.

If you can’t get your short sale property closed, don’t hesitate to give us a call.  We have an expert team that gets the job done!  We would love to make your story the subject of our next case study!

Coastal Mitigation Partners
503-265-9553