News from the Mortgage Front

This afternoon I had a chance to sit down with Joe Smith from Countrywide and pick his brain about what is happening in the local mortgage market.

He had more information than I can even think about remembering right now so I may not have all the details in this post, but I can certainly have Joe elaborate for anyone who cares to hear more.

So I had some big questions about short sales and what buyers and sellers can expect. Buyers, when placing an offer on a short sale, you will need patience! The acceptance of the offer can take 30-90 days for the bank to decide upon.

During that time the sellers will generally have to provide the bank with a copy of the offer, copy of the listing, bank and asset statements, previous years' tax returns and after all that the bank will order an appraisal of the property.

If Countrywide is the lender they then can make a decision, BUT, if Countrywide only services the loan, they must go to the investor that bought the loan and negotiate the deal with them.

This is of course a very loose interpretation of how it works and is specific to Countrywide. Every deal is different and it is always best to consult a professional and bear with us all, for many mortgage professionals, real estate agents and attorneys, this is the first or second time that we have had experience in this and the whole industry is learning as we go. The most important factor is having a team of these professionals that communicate well.

Basically, short sales can save some people from foreclosure and can be a good opportunity for buyers. There are some hoops to jump through but if you are patient it can happen.