Trying to get a short sale done with two mortgages–Need opinion–If you have the general power of attorney and the authorization to release info. can the contract be with the bank or do you have to get the owner to sign contracts–I was of the opinion that I could act for the owner with the poa–Suggestions please
Phil
A POA is required by some banks in addition to or in lieu of the ARI. The lenders still require some things from the HO and for the HO to sign, such as the PA.
Thanks for the reply chateau–I always include the power of attorney and an authorization to release info. So far I have attempted four short sales(all declined but feel I was close on two)–I just need suggestions from the “old timers” as to how they handle them. It seems that from most of the post the investors get contracts from the owner. Am I wrong in assuming that with the poa and the ari I should contract with the bank since they will make the final acceptance. I have gotten two opinions from two attorneys and received two diff opinions!! (suprised?)
Thanks Phil
See, I think the misconception about SS’s is that you are purchasing a property from a lender. This is not the case. You are purchasing the property from the HO. The SS aspect of it is simply the negotiation between you, the buyer or the representation for the buyer, and the lien holders against that property. By negotiating with the lien holders a payoff for less than what they are owed you are completing a sale by shorting the amount due. This goes for primary, secondary, and any other type of lien on a property.
Now that you know this, think about the process in which you must go through to complete a SS. They bank requires everything from the HO but their first born and blood type. They require this to help them make a decision from an INVESTMENT point of view. Based on the information you provide to them the lender will decide if they are willing to accept less than what they are owed now to keep from loosing more in the long run.
The Letter of Authorization to Release information is required by the lenders in order for them to talk to you about an account that is not yours. That is it. It does absolutely nothing else. Same goes for the POA (in this situation anyway). Different lenders require different documents based on their corporate rules and on state, local, and federal laws.
You do not need a contract from the lender. The only thing you need from the lender is a letter of acceptance of your offer. With this letter they will include payment instructions. Whatever the amount is you negotiate will cure that debt against the property.
I use a listing agreement with the HO as my contract between us allowing me the time needed to complete a SS.
Hope this helps,
Cheers
Thanks again for your quick and helpful response. During the interim I have visited your forum–It’s great!!–This will save me a little time. As you probably know in Georgia by the time the foreclosure notices are made public and you contact the HO you only have about three weeks on average to complete the SS and get it closed even with cash—Thank you again–Hope I can return the favor soon.
Phil