Is WAMU On Crack?

They are countering everything to FMV?????

Not on Crack...but just like any other company trying to get the best deal for themselves.


John (LV)

It seems like a lot of people have forgotten one of the cardinal rules of Creative Real Estate Investing and that being: only dealing with MOTIVATED sellers to make a creative deal work.

So why are short sales only working part of the time and the discounts are getting smaller????

Guess what…the banks/lenders are NOT MOTIVATED to do the deal.

Why should they? If they have enough cash to keep them going and not affect their bottom line, then why take a discount on the real estate they are taking back. They know that markets are cyclical and so it is just a matter of time before the market bounces back and they can make a killing on the resale of the properties they are collecting.

Additionally with the bail outs they have or may have available to them, there is no incentive to give discounts to investors.

Is this true about every property and every lender, of course not, as there are some lenders out there where it makes financial sense for the lender to do the deal; just don’t expect every lender to be MOTIVATED to deal the way you want them to.

My point is not to stop trying to do short sales, but you have to take a realistic approach and not expect miracles in making a gazillion dollars overnight doing them.

John (LV)

I heard one today where the house was listed at 300k, the buyer offered 290k and the seller countered with 330k.....they had hoped the low selling price would get people to bid over...it didn't. The buyers simply walked away....guess what it's still for sale at 300k and NOT moving. They'll wish they took the 290k in another 3 months when another home sells for less. Don't agonize about it....just move on...there's lots of inventory.

We have several with WaMu and they're all the same result lately. Counter to appraised value and won't budge no matter what we do. They're is no logic to this. I won't be losing any sleep over it as these are def not our only deals. More or less b%itching at this point.
Ive seen these go down in flames to foreclosure then pop up on the mls weeks later priced BELOW our last offer??? Brain Damage.

Wamu Sux

BTW.. We are not having this problem with most every other lender as they are slashing prices right now.

[ Edited by jackbenimble on Date 04/18/2008 ]

When doing short sales, it's important to understand the following:
1) how the process works
2) how to validate the offer
3) how to work with the BPO
4) the importance of getting as many deals in the pipeline as possible.

When you've done these for some time, you'll get good enough at and reach up to 80 percent of your cases approved near your number (but you still have to find a buyer if you're creating a quick-turn).

The beginners I've worked with typically hit 10-20 percent.

The banks control everything except the package you submit and the support you use to back your offer. Don't depend on any one case to get you through the month, go for at least five new cases per month and you should be closing on 2 six months down the road, consistently.

[addsig]

When doing short sales, it's important to understand the following:
1) how the process works
2) how to validate the offer
3) how to work with the BPO
4) the importance of getting as many deals in the pipeline as possible.

When you've done these for some time, you'll get good enough at and reach up to 80 percent of your cases approved near your number (but you still have to find a buyer if you're creating a quick-turn).

The beginners I've worked with typically hit 10-20 percent.

The banks control everything except the package you submit and the support you use to back your offer. Don't depend on any one case to get you through the month, go for at least five new cases per month and you should be closing on 2 six months down the road, consistently.

[addsig]

quote: When you've done these for some time, you'll get good enough at and reach up to 80 percent of your cases approved near your number (but you still have to find a buyer if you're creating a quick-turn).



That all depends on what your willing to pay.

I think Bargain76 hit it on the head when he said he thinks they are waiting for the government bail out.

Chris

Wamu has always been on crack as far as I know

speaking of On Crack - Carrington rejected $180,000 cash on an inflated $200k BPO. The guy told me that "they" were getting 220 billion dollars [from the gov't bail out] and that they can afford to wait - he summed it up with that it is "his bat, his ball, his game'.
a real jerk.

Guess what- you can have the bat, the ball, yes it can be your game- but you are still going to need players.

Trust me, there are too many low hanging fruit waiting to be plucked to waste time dealing with jerks.

Next!

Chris

Call the Trustee to find out what the bid amount is for the foreclosure sale. ONe of the deals I had with WAMU, I found out the offer was higher than the bid price and that helped getting the deal closed.