Advice On This Deal & Short Sale Books??
I've spent my REI life on the courthouse steps and I've been reading this forum with much interest!!
Question 1 - can anyone suggest a good eBook/course for the mechanics of Short Sales
and
Question 2 - I'm looking at a property right now - here's the scenario:
Chase in 1st owed: $310K
Flagstar in 2nd owed: $55K
Household/Beneficial in 3rd owed $ $33K
There are some other liens too but let's skip those for now!
Total owed: $398K. On a good day the property might sell for $355.
Auction is in little over a month. Owner in Chapter 13 but not confirmed and case is about to be dismissed anyway.
Does anyone have any experience in dealing with these lenders and what would you suggest on this?
Here's to gettin off the courthouse steps
Hello?
Can anyone help me out here?
what kind of condition is the property in?
Based on what I have read from this site, your strategy should be to get the 2nd and 3rd to accept less than the amount owed. If the first forecloses, they will not get anything.
Also, has the property owner signed a document indicating that it is ok for you to speak to his creditors? If not, you need to get that done yesterday. It might serve your interest better if you tell them that you are a friend of the owners and that you are attempting to help him straighten out his affairs.
To make sure that you are targeting the right folks for each institution, the current owner needs to either give you the last piece of correspondence he received from each or give you contact information for each. You then need to contact the first mortgage holder for their short sale package. While you are speaking to the first, you might want to find out how much time you have before they take further action and what that action might be.
I am not sure when you approach the 2nd and 3rd but I do know that you will be negotiating for them to take far less than the amount owed. You can ask them about their process after you get a handle on what the first is doing. You need to be in a position to remind the 2nd and 3rd that they will get nothing if the first mortgage forecloses. So they need to play nice.
For further assistance, you might want to look at the short sale forum on this site. There are plenty of people around that can provide guidance. A LOT can be learned by looking at some of the old postings. Good luck
In my experience, the property must be out of bankruptcy before any of the lenders will discuss a possible short sale with you. This could take several weeks to months for the proper paperwork to be processed by the courts and then processed at the mortgage companies. Right now I've got two properties I'm working on that are coming out of bankruptcy. One I've been waiting on for about a month, and the other was discharged in April and we're still waiting for the paper work.
Thanks!
The property is in good condition - it needs a lot of yard work & roof cleaning..minor cosmetic paint work. Not sure how much this could be embelished for the lenders!!
The 1st note goes to auction in the middle of November.
IF it doesn't revert, the surplus will go to the 2nd but I know it won't fetch the full amount owed.
My question is how much to offer in terms of %age? Clearly #3 is in a world of hurt. Number # might get a little.
What advice would you give on numbers?
Oh...yes - I do have a release/authorization form.
thanks!!
Before attempting this SS I would figure out how much you need to be into the property to make it work...If you only want to buy it for $275K you need to get your lenders to all work towards that number...anything after that is cake...Figure out your number, then start negotiating....I would think household would be quite low in what they would take...im just guessing but probally $5-10K...good luck
For the basics to the short sale acquisition technique, in a no hype format, I suggest that you buy A Short SalePrimer on this TCI site. It is available in an E-Book, or, if you need E-Support, you should purchase the print version. Included with the more expensive print version you'll get e-support, including a review and critique of your short sale proposal before you submit it to your lender.