Can You Short A Forclosure?
I am just getting into pre-foreclosures. I have dealt mainly with REO's and have tired of the banks upperhand in the open market.
I received a call from a homeowner who has been forclosed on by Fairbanks in April 2003. She has until September 15 to redeem. She owed before penalty and late fees 43k. Fairbanks forclosed for 57k and purchased the sherriffs deed. The house needs at least 15k (windows, bath, cement drive, doors...) and the FMV is 70k.
Would I have any position to call Fairbanks loss mitigation and try to arrange a short sale? Can this be done after the forclosure but before the redemtion?
The short answer is Yes. If you can demonstrate that it would be in Fairbank's best financial interest to accept less than it's due, you and the former homeowner can devise a plan to exercise redemption...
The Homeowner can sell you her ROR for $1 giving you the right to negotiate.
Fairbanks, in my opinion, is one of the sleaziest mortgage loan servicers on the face of the planet.
Thanks TheShortSalePro! I thought so but wanted to check with the procedure before I called Fairbanks.
Also, by ROR are you referring to a first right of refusal?? Sorry I am not familiar with the term ROR. Newbies!
You are right on money about Fairbanks. I have been looking over her closing documents.. and from what I can see they took her for about 12k. Her orginal mortgage that she refied out of was for 29K. After adding all of their fee's (even a life insurance policy for 2k). If they end up eating this property I think that that will be some of the justice owed!
[ Edited by webuyhousesmi on Date 08/08/2003 ]
sorry, ROR = right of redemption