Mortgage Forum

Mike

Good evening,I am in a predicament I haven't found much information on. If anyone has some insight, I could use some enlightening.-

I am a FSBO (for sale by owner) listing house at $324,900- Accepted an offer for $307,000 (buyer has no agent) :)- House only appraised at $275,000, Got 2nd appraisal - valued it $273,000 :eek:- Buyer willing to pay $280,000, I was good with that- 1st mortgage with Wells Fargo for $256,000, 2nd with GMAC for $49,000- Essentially Wells Fargo will be covered 100% but GMAC will be short about $27,000- Called Loss Mitigations and told them the situation with the low appraisals.

He sent me a short sale packet to complete and assigned me the person that would be working on my packet. He told me I should have approval within 7-14 days. Is this realistic? I asked him why all the horror stories if it doesn't take that long to approve? He said I was in a better situation because I was only needing to negotiate with one lender and I already had a buyer. I'm not sure whether to believe him.-

Faxed the packet back today with all necessary information including the two low appraisals. Is it possible that this really is a unique predicament? I have a buyer that is willing to pay over the appraisal price and is ready to close escrow. I have two appraisals to support my documentation. There are no agents to negotiate commission over.

GMAC will actually see some proceeds. And I have been a loyal GMAC client for 3 homes with no late payments or defaults. Is it possible that this short sale could go through? I didn't start off with thinking short sale until the appraisals came in and I do not have funds to cover the shortfall.

I'm am unsure over what to do!