Can I Short Sale This ??
A house that is now in lis pendens was purchased in 2000 for $94,500 with an $80,000 mortgage. In 2002 a $104,000 mortgage was taken out on it and the original $80,000 was paid off. It needs work, has just one bathroom, single garage, not really a beauty but a nice home anyway. The taxes are paid and there are no liens.
We have never short saled before, so I'm not sure of the first step. Do I call the bank? Must we present it on paper to the bank or just make an appointment and do this in person? If the owners do agree to sell to us, do we need their approval to ask the bank to short sale the mortgage? Help anyone? We are newbies at foreclosures. We have rentals but purchased them through regular sales from real estate agents. Thanks!!!
You don't mention what might be the most important number in the short sale equation... the property's as-is, fair market value. It is this number that forms the foundation for short sale feasibility.
A "short sale" requires an agreement between the Buyer and Seller... and approval from the mortgagee(s) asked to accept less than they are contractually due.
You have to determine if the foreclosure complaint is valid. Is the property for sale? Do they want to sell? Can the Homeowners implement a non foreclosure alternative?
Start with the Homeowner.
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