1st Deal, Will A Short Sale Work? Please Help!!!
Hello all,
This is my first deal and I need help!
I have a motivated seller in pre-foreclosure, sale date is set for May 12th. Seller is willing to take amount of loan balance or short sale, just to stop foreclosure and save their credit.
Is there enough time to even do a short sale? Will the bank postpone the sale if they know someone wants to buy the home?
Does anyone have any other suggestions in order for me to help these homeowners?
Here's the stats:
ARV = $55,300
1st Mortg. = $47,000
Arrears = $3720 to $4340
Repairs = $3,000 to 5,000
If a short sale won't work or there isn't enough time, does anyone have any other suggestions? I want to try to help these homeowners, but too much of a newbie to figure this out on my own.
Any suggestions would be great!
Thanks,
Bea
ARV (I presume you mean after repaired value) isn't germain to the short sale prequalification equation...
The essential value that must be identified (and defended) is the as-is, fair market value. What's the property worth today? From that, you adjust the base value and arrive at a number that it's worth to the foreclosing mortgagee.
You can't be timid when setting the value.... this value will be the basis for the short sale transaction. So, be prepared to roll up your sleeves, gather data, devise a realistic valuation, and be prepared to defend your position with factual data.
Then, you can prequalify the candidate for short sale consideration... or decide upon another acquisition technique.
Have you or the Homeowner asked the mortgagee to postpone the sale as a potential buyer performs it's due diligence?
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 04/30/2004 ]
This is prime short sale territory. Do your homework make your pitch as the Pro suggests. If the bank won't give you time you can trot into court and ask for a delay on the grounds that the borrower has an interested buyer. Judge will probably give you another month. If not have the seller trot down and file bankruptcy and you get another 90 days.
Commercialking,
I've heard of asking the bank to postpone but not the court. Has your experience been that the court is usually open to a delay for such a reason?
Thanks,
Kelly
KNUCS, in many jurisdictions, the homeowner/defendant can petition the Court for some extra time during which a pending sales transaction can be completed. Normally, the Court would require an executed contract for sale, and assurances that the Purchaser was qualified to complete the sale within the very near future.