Beginner With Questions
Hi everyone. I'm so glad that I found this website. It's a wealth of info and I'm in need. I'm wondering if the bank has to wait until the redemption period is over before they can negotiate a short sale. I'm looking at a house that's in foreclosure. We're in IL. The owner was served 12/29/03. My understanding is that he has until 7/29 to do something. The sheriff's sale is 8/5. The judgement is 150k with 131 being the balance and 19k in interest, taxes, fees, ect. FMV is 205k. He also has a second lien for approx 30k. How much negotiating room do they have? 1st and 2nd?
The 1st takes priority so they have more leverage. The 2nd is in a bad spot and will want to deal. The numbers your showing don't look great but if you were to payoff the 2nd for 10k it would look alot better to me. Any thing above and beyond that is just that much better.
But can the bank talk to me before 7/29? And, is there enough time to deal with the bank from 7/29 to 8/5 if I give them cash? The redemption period is 7 mos in IL and the owner was served on 12/29. Thanks for your reply. Another problem....I can't see the bank dealing with me if FMV is 205 and I only want to give them their 150k judgment. I'm also counting on the owner to keep his head in the sand, there must be some kind of denial thing going on. He's in bankruptsy and is talking about new carpet and leather furniture. First, he might want to make sure he still has a home to put the furniture in.
"But can the bank talk to me before 7/29"
The bank will only speak to you with the mortgagor's written permission to discuss a short sale. FAX the Letter of Authorization, and get the application process started. Time's a wastin!
Better get moving!
[addsig]
So, how much time does it take to make a deal like this. The owner is dragging his feet and I want to know when to throw in the towel. He still thinks that a magic fairy is going to come along and save him.
Magic Fairy = non modivated seller = likely no deal
I agree with myfrogger- cut him lose and move on.
Ya, I've pretty much written it off. He has my number if reality finally hits him over the head. The only reason that I was keeping the hope longer was because the house in in near perfect condition with a beautifully finished basement in a neighborhood where the houses go fast.